So, you’re looking at buying a new home which will inevitably be one of the biggest financial investments and emotional commitments that you will make. For those new to the property market and the conveyancing process, buying your home may seem overwhelming at times.
Our conveyancing team has put together this helpful 9-part guide that looks at the process involved when purchasing a property. Let’s get started with the first step, Finance and Deposit.
How much deposit do you need?
You can have as little as a 5% of the purchase price for your deposit. It is however ideal to have a 20% deposit in order to avoid having to pay Lenders Mortgage Insurance (LMI) on top of your loan amount.
For more information on LMI, take a look at Amelia’s Vlog on Lenders Mortgage Insurance.
The amount of deposit required will of course depend on how much you are willing to pay for your property and how much you can borrow.
Having a budget before you start looking for your property will assist in determining the amount of regular repayments you can afford to make and therefore how much you can afford to borrow.
In relation to your borrowing power this mortgage calculator can assist you to calculate the amount that you can borrow and what this will equate to in regular repayments.
Also, keep in mind that if you are a first home buyer you may be eligible for a grant or subsidy to help out with the funding of your purchase.
Before looking for a property it is best to have preapproval from your Lender. It is recommended to shop around for Lenders in order to find the best rates for your situation.
We understand that going through Lenders can be a time- consuming task, therefore it may be worth considering using a Mortgage Broker to do the shopping around for you. Here is a list of some Mortgage Brokers, that may be able to assist in your area.
If you have any questions or should you need any assistance please do not hesitate to contact us at Southern Waters Legal. We offer a free 15 minute no obligation chat if you want to chat through your circumstances.