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