9 steps to buying your first home
Buying your first home is a big financial and emotional commitment. Here’s a quick guide to help you on your journey.
1. Have you saved enough for a deposit?
It sounds obvious, but it’s worth reiterating that you can’t buy a property without a deposit. Saving for a deposit is a long-term goal that takes the average Australian four years, so it’s wise to start early.
Nexus Mutual’s Home Saver account can help boost your home loan savings by rewarding you with a bonus interest when you deposit a minimum of $100 and make no withdrawals in the same calendar month. You’ll also get added benefits when you put your savings from this account towards a Nexus Mutual home loan.
2. What's your budget?
A deposit of at least 20% of the value of the property will avoid the need for Lenders Mortgage Insurance. Nexus Mutual requires at least a 5% deposit but you would need insurance if you have less than 20%. If you have family that can help, a family support loan lets them use their home equity to help you out.
3. Find the right loan
Compare interest rates and product features and consider what’s important to you.
Nexus Mutual has a range of competitive home loans to suit various needs. For example, we have everything from our Essentials home loan to our full-featured Platinum home loans to help you meet your home ownership goals.
4. Apply for a loan pre-approval
A pre-approval gives you a clear indication of the amount you can borrow. This is critical if you’re bidding at an auction. It also helps you focus on properties you can afford and gives you the confidence to progress a purchase.
Apply online for your conditional pre-approval
Make a Skype appointment
Download an application form
5. Let the search begin!
Research what areas you’d like to live in and what type of home suits you best.
Consider properties that qualify you for the First Home Owner Grant.
Search real estate listings, go to home inspections and auctions, talk to agents.
6. Conduct due diligence
When you find a home you like, review the contract of sale in consultation with a solicitor or conveyancer. Arrange for inspections of the property.
7. Make an offer
Private sale - if you’re satisfied with the property, make an offer that is “subject to finance”. This gives you time to organise the loan and finalise your financing arrangements.
Auction – If you’re buying a home via auction, your offer is binding, and you’ll need to pay a deposit on auction day, typically 10% of sale price.
8. Get your loan approved
We’ll guide you through the loan documentation and approval process.
We’re a tight-knit team, so credit assessment and approval are more straightforward than what you’ll find at big multi-layered banks. Once your application’s approved, we’ll send you a letter of offer to confirm the amount we’re lending you.