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Saving for a Deposit
Do you want to buy a home but don’t think you have enough deposit saved?
Don't just apply to "any" lender - it is often just a waste of time.
We have lenders willing to lend to you with as little as 5% deposit.
There are a few requirements:
- Proof will be required that the deposit is from savings, sale of an asset or a gift from family
- You will need to have sufficient income to service the loan and been in employment for last 6 months
- You will need to have a clean credit rating and have little or no short term debt; such as credit cards, hire purchase and car loans.
- Have no dishonour or honour fees on your bank account statements (providing last 6 months history as evidence)
Before You Start Looking
Don’t rush into buying a home. You are spending a lot of money, make an informed decision. You will be living in this home for a long time so think about how your life may change in the next 5-10 years.
- Check out some open homes in different areas so you can see what you can get for your money in different areas.
- Get pre-approval for your home loan. This lets you know how much you can borrow so you don’t get your heart set on a home you can’t afford.
- Make a check list on must haves, would likes, and not important.
- Do a budget to see what you can really afford, allowing for; increases in interest rates, property rates, home insurance and property maintenance.
Important Things You Need to Know
- The larger the deposit you can save the less you will have to borrow.
- Don’t tell the real estate agent or seller your top price. The real estate agent may be working for the seller. Get your own real estate agent who will negotiate in your best interests.
- The sale and purchase agreement is a legal contract. Get advice from a lawyer before you sign anything. Once both you and the seller have signed and initialled all the changes it is binding. You can stop negotiating before this at any time.
- Don’t get rushed into anything – take the time you need to consider everything and get advice from a lawyer and other professionals.
- If the seller changes the offer, you can change their counter offer.
- Negotiations may not be just on price but also on the conditions you have written on the agreement such as fittings included or having the seller complete repairs. The negotiations may be about the settlement date or finance date.
Selling Your Home and Buying Another
- Make sure you are realistic about how much your existing home will sell for and how long it will take. Have a look at what similar homes in your area are selling for and how long they are on the market.
- Go and visit open homes in your area - check out the competition
- Don't put your house on the market until it is ready for sale. Declutter, do all those little fix up jobs you have been putting off, even consider repainting to freshen it up. Get some friends to give you their honest opinion about how your home looks from the roadside. You want your home to look appealing so people will want to come in.
- Think about what you will do if you sell your home before finding a new home to live in or vice versa if you find a new home before your home sells.
We can help you with finance options to help you move form one home to another.
Contact us to get you started on buying your new home