2017 could be the year to realise your real estate dreams.

Moving over Sydney and Melbourne, the humble Hobart is the rising star attracting home buyers, thanks to housing affordability and booming tourism in Hobart. Many upcoming suburbs are offering affordable homes, made further affordable by the lowest home loan rates since a long time.

2017 may be the year when both buyers and sellers may rejoice. Steady growth in property prices in established suburbs coupled with the rentvesting generation investing in affordable locales and renting in premium locations makes it a win-win situation for everyone.

Planning-to buy-ahome-in-2017

So as we begin the countdown for 2016 to come to a close, it is high time you start prepping for your property purchase in 2017. Here are few tips to prepare you for a stellar start on the property ladder in 2017.

1. Check your credit report – Before you go loan shopping, pull out your credit report and check for any errors or black marks that may affect your home loan application adversely. Defaults in payments stay on your credit file for up to 5 years while missed repayments stay for up to 2 years. When planning to apply for a home loan, be cautious to never even miss the smallest of payments because a missed utility bill can potentially have your loan application derailed. Know how your credit score can affect your borrowing capacity.

Order your free credit report from websites such as Veda and give it a thorough read.

2. Plan for your deposit – Having a 20 percent home loan deposit can give you an edge in the market; letting you negotiate a better rate on your home loan. As the year comes to a close, it is time to review your incomings and outgoings and prepare a budget to meet your savings target.

Also keep in mind the accessory costs such as stamp duty, LMI, valuation fees, inspection fees and loan settlement fee. This can amount up to an additional 5% of the purchase price apart from the deposit.

Having a 20% deposit is the golden benchmark for home buyers but don’t let that dampen your enthusiasm; you can buy a home with no deposit at all.

3. Know your borrowing capacity – Before you start shopping for homes, it will help to know beforehand how much you can borrow. Knowing your borrowing capacity will prevent any disappointment in the future as it gives you an idea of how much you can really spend.

However, only because lenders are ready to offer you a certain amount, does not mean you can service the full amount over the entire term. Only you are aware of your exact financial condition and whether it will change in the future. To play it safe, calculate your monthly repayments with this home loan calculator before subscribing for a loan amount.

4. Acquaint yourself with the market – The housing finance market is full of jargon that can especially be daunting for first time home buyers and investors. It helps to understand the market better before diving into it to make a purchase. LMI, LVR, Debt-to-Income ratio… sounds alien?

While you are at it, it also helps to research important numbers in the suburb you intend to buy in. The vacancy rate, property rates and average rental yield; check out these numbers before deciding where you want to buy. Grab your free property report to know your suburb better.

Finding a home to buy requires meticulous planning.

Before finalizing on a property, research the location well. Family friendly locations always command more rent and appreciate better. It is also worthwhile to check with the local council for development plans that may affect the value of your property adversely.

Once shortlisted, get professional valuation, pest and building inspection done before opening your heart and wallet to any property.

5. Prepare your documentation – Traditional home loans require a great deal of paperwork that can be unnerving to arrange for at the last moment. In fact, the success of your home loan application largely depends on how well you are prepared with your paperwork.

Apart from ID proofs fulfilling the 100-point identification criteria, you also require documentation to prove your employment and income. You can check the list of loan documents that you need for your home loan application.

Self-employed persons may find it hard to provide the requisite documentation for a traditional loan but they can always apply for a low doc loan requiring minimal paperwork.

6. Get loan pre-approval – It is strongly recommended to get a home loan pre-approval before you start shopping for a home. A pre-approval refers to a conditional approval from a lender that you can borrow a fixed amount for an agreed period of time provided you meet the necessary criterion.

Being pre-approved, you know exactly how much you can spend and will never find yourself stranded with a property that you cannot afford. Having a pre-approval also means you can confidently bid at auctions for a great deal!

What’s more, getting a pre-approval is free.

7. Choose the right mortgage broker – Choosing the right mortgage broker can make all the difference between a good deal and a bad one. A professional broker will not only save you time and money, but will also recommend home loan options mapped to your financial condition and vision.

Brokers have access to lower home loan rates and home loan deals from banks that are not usually advertised. Further, many brokers pass on their commission to borrowers. At HashChing, verified brokers offer pre-negotiated home loan rates that you can compare via online mortgage comparison.

For a hassle-free property purchase, get in touch with expert brokers for quick and free resolutions to all your home loan queries online. 

By Vidhu Bajaj

HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.