Things to think about
Buying a home is probably the biggest financial purchase you will ever make, so you should have all the facts about obtaining housing finance before you decide.
We recommend you:
1. Shop around
Home lending in Australia has changed a lot in recent years. Interest rates and the types of loans available can change rapidly. It is important to know what products are available when you think about buying a home.
There are many options.
2. Seek advice
It is important to be well informed when deciding whether a department loan is right for you. The department requires that you seek independent financial advice, and strongly recommends that you seek independent legal advice.
Start planning your future budget now.
When you own a home, there are many extra costs that you would not have to pay as a renter. Work out your budget for:
home maintenance and repairs;
council rates; and insurance.
While some of these expenses occur regularly, others such as unexpected repairs, will arise without notice.
What are the costs of home ownership?
There are many costs associated with buying and moving into a home. These may include:
conveyancing (legal fees);
loan application fees;
government stamp duty;
council rates and transfer fees;
building inspection costs;
connecting electricity, gas and telephone;
insurance on the home; and
adjustments to be paid on completion of the contract.
Make a list so you know what is involved and how much money you will need. Ask your solicitor/conveyancer for an estimate of these costs based upon your particular circumstances, as they do vary depending on the purchase price, hours involved and other factors.