Welcome to the world of property market.

Stepping into your first home loan may seem like a daunting prospect. In fact, it has to be in an easy way. Our aim is help you securing your first home loan so that you can get onto the property ladder as soon as possible. The following six tips will definitely help first home buyers not just to the finance done in a smooth process and but also to choose the right property for you.

1. Make your choice clear

Home loans come with various packages and products. The interest rates and fees may vary a lot when we compare all these products.

Some loans may appear to be super cheap but in actual they end up with higher costs and fees. The comparison rate is therefore always displayed next to interest rate.

All the loan products are designed according to needs of consumers. So, a particular product which have specific features may have advantages and disadvantages to you. A client has to be clear whether the various features are required such as

• Make extra repayments,
• Redraw funds,
• Use an offset account

This is when mortgage brokers come into action. At Echoice Finance, we compare the best suitable product according to your needs and provide you few options with variety of lenders. It is similar to shopping around which our mortgage brokers do for you.

2. Know the Government Assistance

• The First Home Owner Grant

The First Home Owner Grant is a national scheme. The states also provide grants on their own as well. We can check your eligibility with the department. Alternatively, you can also find more information on www.firsthome.gov.au

• Stamp duty concessions

The concessions in stamp duty varies from state to state and apply up to a certain property value. There is not stamp duty for property up to $430,000 for first home buyers in WA. Please visit echoicefinance.com.au for more details.

• The First Home Super Saver Scheme

Voluntary super contributions (1 July 2017) can be used as a deposit towards a home loan. However, this scheme is for first home buyer only and the maximum amount to be withdrawn is $30,000 and $60,000 for couples.

SMSF (self-managed super fund) is another way to invest super in property.

3. Know the Location

Banks do not provide loan to buy property in any area. Banks have certain postcode restrictions where the do not give loan if you buying property in that area.

Apart that there are few issues worth considering such as:

• Distance of property from your work, family and friends
• The establishment of amenities such as schools, parks and shops
• The crime rates. Public housing ratio and future safety of area
• The potential to grow
• The industrial area and transport projects around the suburb.

4. Know the Costs

There are various costs which can occur during the whole process. Client should familiarize themselves and never hesitate to ask your bank or broker about these costs.

• Application fee – This is a one-off fee paid to your lender to get a loan. The lenders normally apply this fee to cover their expenses such as credit checks, property appraisals etc. This fee varies from bank to bank. Some banks waive off this fee during their certain offers.
• Lender’s mortgage insurance – LMI is charged when client contributes less than 20% deposit towards home loan. This amount can be added up on the top of your loan amount or can be paid up front. Please note that LMI covers lender in case of a default and does not cover buyer.
• Government fees – These fees are on the top of stamp duty. It includes mortgage registration fees and legal fees. This amount varies from state to state as well.
• Legal and settlement fees – The final settlement is done by a solicitor, who’ll prepare the necessary documentation and legal checks on your property to avoid any troubles in future. The fees are similar but may vary from state to state.
• Building, pest and strata inspections – These inspections have to be carried out before the settlement process. The client has to pay for the above costs.

5. Maximize your Deposit

It is very important to figure out the deposit you want to contribute towards the loan amount. The deposit amount can provide you more choices with banks and interest rates.

It may be worth contributing as much as you can as in the long run, a little more deposit can help you save extra thousand dollars in interest over the 30 years loan term.

There are benefits from Tax and negative gearings, so if your family want to chip in extra money for investment then you can discuss with your accountant or financial planner.

6. Know your credit Score

You can receive your free credit report from Equifax once a year. The credit report displays your repayment history, previous loans and enquiries made earlier to get a loan.

Each lender assesses your credit file against their own policies. If we know the credit score, then it will save time and we only approach the bank which service that score ratings.

At Echoice Finance, we provide you pre-Approval and confidence to boost your browsing power. A finance ready individual can take much bold and smart decision compared to window-shopper. The property and finance market move rapidly and we prepare our clients to be decisive and confident. We welcome you to the real estate market by
providing the best outcomes with positive decisions.

Reach us at www.echoicefinance.com.au for an obligation free information session.