When it comes to buying a home it can be tricky figuring out where to start. Follow these steps to help you find the perfect place for you.
Step 1: Research the market
Are you looking for a home to live in or an investment property? This will shape what features you look for. Start by assessing where you’d like to buy, what recent trends are and what kind of place you can afford.
Step 2: Figure out how much you can borrow
Use our How much can I borrow? calculator to figure out roughly how much this is so you can begin to refine your search. You want to get a good idea of your ‘borrowing power’ early so that you don’t waste time looking at properties that don’t fit your budget.
Step 3: Work out the details
There are more costs to buying a home than just a deposit, these are things like stamp duty and pest inspections. Estimate roughly how much these costs will be.
To get a hand getting the money together for a deposit, consider whether you’ll take out Lenders’ Mortgage Insurance or have someone guarantee your loan. If it’s your first home you may be eligible for the First Home Owner Grant.
Step 4: Create a budget and set a savings goal
You’ll need to start saving for a deposit. Put together a budget to calculate how much you can save each month and then use our Savings Calculator to see how long it will take to reach your goal. Saving for a deposit can be a lengthy process so set yourself milestones along the way.
Step 5: Consider home loan options
Depending on your circumstances, a fixed or variable interest rate or a mixture of both may work best. A lending specialist can explain the differences and help you identify what’s important to you. As a general rule, ideally your mortgage repayments won’t exceed 30% of your after-tax salary.
Once you’re ready, look at getting conditional pre-approval so you can lock down a property when you find the right one.
Step 6: Find your home
Now everything is in place it’s time to step up your search. You can use the CommBank Property app to find the right property and gain market insights.