| From Darwin to Dubbo, Brisbane to Broome, | | | | variable and fixed rates. Compare what's on |
| Australia has one of the highest levels of | | | | offer with different banks (not just the big |
| home ownership in the world. In spite of the | | | | 4), mortgage brokers and boutique lenders. |
| recent surge in prices in every capital city, | | | | Some places may offer only one or two loan |
| that great Aussie dream of owning your own | | | | types, but lenders such as HSBC Australia |
| patch of paradise is still what most of us | | | | have no less than 9 different loans to suit |
| aspire to. But if you're smart and do some | | | | everyone's lifestyle. Well worth checking |
| planning, there are clever ways to make | | | | out. |
| buying your own home a little easier to do. | | | | |
| | | | 5. Don't forget about fees - keep funds aside |
| Here are seven good tips to help you get the | | | | |
| front door key faster. | | | | Okay. You've been saving hard for a deposit |
| | | | and your loan has been approved. When you |
| 1. Don't be swayed by fabulous furniture and | | | | take the plunge a sign a contract of sale, |
| fresh flowers. | | | | there are all sorts of little (and |
| | | | not-so-little extras) added on. These include |
| Many home sellers now use professional | | | | stamp duty, legal costs, disbursements, |
| stylists to ensure their property looks the | | | | mortgage insurance, pest inspection report, |
| best at open for inspections. But look beyond | | | | survey report, builder's report, loan |
| the designer cushions and fresh flowers. Be | | | | application fee, valuation fee, registration |
| practical. Do a pest and building inspection | | | | fee and so on. |
| and check for major structural damage or | | | | |
| signs of rot. And, don't forget to ask | | | | 6. Another secret. Ask about "professional |
| yourself all those mundane questions - such | | | | package" discounts |
| as is there enough cupboard space in the | | | | |
| kitchen or will your sofa fit through the | | | | Banks are a lot more competitive nowadays and |
| front door? | | | | actively reward customer loyalty. If you're |
| | | | earning a reasonably good salary, say more |
| 2. Location first, property second. | | | | than $50,000 a year, or $80,000 or more with |
| | | | a partner, ask about the "professional |
| Your first property may not be your dream | | | | packages". The home loan interest rate you |
| home, but it can be a vital springboard | | | | are offered is usually discounted by 0.5 per |
| towards that long term goal. The trick is to | | | | cent, which can really help. If you have a |
| buy in a location where property values are | | | | strong relationship with one lender and |
| growing at the same rate as the location you | | | | consolidate all your business with them, you |
| ultimately want to live in. | | | | can qualify for more discounts, savings |
| | | | account fee waivers and credit card annual |
| This means compromising on the size or style | | | | fee waivers. |
| of property. Buying a town house or a unit | | | | |
| instead of a house, or a one bedroom instead | | | | 7. Forget that daily latte. Extra payments |
| of a two bedroom place.The important thing is | | | | can reduce your interest faster |
| that you'll have a foothold in your dream | | | | |
| location. When you've accumulated more equity | | | | If you gave up buying your morning latte on |
| through capital growth, you'll be able to | | | | the way to work, you can save over $700 a |
| trade up to your dream home, too. | | | | year! Put it towards your loan. Making extra |
| | | | repayments is one of the best ways to reduce |
| 3. Small apartment blocks versus large. | | | | the total interest paid and term of your |
| | | | loan. Some people even try making payments |
| The glamour of a big modern apartment block | | | | every fortnight - great if it works for you |
| with outdoor pool, gym and on-site caretaker | | | | and your budget. |
| can certainly win over buyers. But here | | | | |
| comes the crunch. You pay expensive body | | | | As a rule of thumb, every $1 in extra |
| corporate fees every quarter and ongoing | | | | repayments you make early in the life of your |
| maintenance charges. Smaller blocks are | | | | loan saves around $2 in interest over the |
| usually older with fewer (if any) facilities, | | | | term of the loan, depending on the level of |
| cost less to run and are often better | | | | interest rates. |
| maintained because of a higher level of | | | | |
| owners versus renters. If you're in the | | | | If you have spare cash from selling your car |
| market for an apartment and see several | | | | or a garage sale, think about making a |
| places for the sale in the same block, | | | | one-off lump sum payment. Check first that |
| chances are the fees are the reason why. | | | | your loan allows you to make additional |
| Beware. | | | | repayments without a penalty. |
| | | | |
| 4. Save valuable time. Search online for the | | | | Happy house hunting! |
| best loan | | | | |
| | | | Cathy Howley is Creative Manager and |
| When it comes to finding a loan, it pays to | | | | Copywriter at Options Strategy, Melbourne. |
| do your homework. There's a minefield of | | | | The digital agency with the strategy edge. |
| possibilities, offers, types of loans, | | | | |