Category: House & Home
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Sub category: Buy
 

Four tips for buying your first home

Trying to get a foothold on the property ladder? Here are a few tips to help bring your home ownership goal closer to reality.

1. Understand your borrowing capacity

Talking to a lender at an early stage, even if you’re not ready to buy, will give you an idea of your borrowing capacity – in other words, how much you can afford to borrow for your particular circumstances. This is important as it helps you narrow down the suburbs you can afford to buy in.

2. Be organised about saving for a deposit

The more you can save as a deposit, the less you need to borrow and the lower your regular repayments may be. So it’s worth building up your deposit, even if it means giving up some luxuries for a while.

Instead of trying to save what’s left over after you’ve paid bills and expenses, aim to save a fixed sum each pay day. Think about setting up a regular transfer from your everyday account to a high interest savings account. You’ll be growing savings and developing the habit of living within a set spending limit – something that can be useful practice for learning to live with a home loan.

3. Get your finances in the best shape possible

Use the time it takes to grow a deposit to improve your overall financial health. Lenders don’t just look at your income when deciding loan eligibility, your disposable income will also be taken into account and this can be impacted by repayments on other debts. Where possible pay down personal loans and credit cards, and ensure you pay bills on time to avoid any black marks on your credit record.

4. Think outside the square

If you can’t currently afford to buy a place on your own in your preferred area, it could be worth looking at other options. For example, you may consider pooling your cash with a close friend or sibling to purchase property as co-buyers, making your first property a rental investment in an up and coming area, rather than an owner occupied home, or buying off the plan to take advantage of possible stamp duty savings.

If you’re not sure, consider asking a financial adviser for tailored advice for your circumstances.

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The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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