Me and hubby want to buy a house.
What do we need to do?
How much money do we need saved?
What does our job situation have to be?
Should I see a financial advisor?
Or should i go see my bank?
I have no clue where to start!!
We have some savings probably not enough and neither of us have owned before.
Stuff like this should be taught in school! Lol
6 Replies
Make an appointment with a mortgage broker. It will depend on where you live, the financial climate at the time, what government incentives will be available, the number of dependents you have, how long you’ve worked at your current jobs for and what your employment status is (permanent etc).
OP here - why does dependents matter? Just curious
The more dependents, the higher your expenses.
If you have say three kids and your expenses are below what their benchmark for a three dependent household is, they might increase them. It’s about being able to service the loan. Income versus expenses. The more dependents, the more income you’ll need to show you can keep up repayments. A while back, not sure about now, some banks would lend if you had 5 percent deposit plus expenses (stamp duty, legals, etc). I had a bit of a checkered work history, quite a few jobs in the last few years, although permanent in my current role and so I had to give a 10 percent deposit.
As a first home buyer, you may be eligible for a grant, check your state plus government incentives. Talk to a mortgage broker, don’t go directly to a bank. A mortgage broker will tell you if it’s doable and which bank is best. If you apply for a loan and are rejected, it can effect things like your credit rating, so that’s why a mortgage broker is better. Theres also no charge, they get commissions from the bank and you are helping out a local business, rather than just the big banks.
See a mortgage broker. Generally speaking banks like you to have a minimum of 10% for a deposit.. plus extra savings.
If you can save a 20% deposit you will save on having to pay lmi. As the other posters have said there are lots of variables and your best bet is to speak to a mortgage broker - ours has been amazing
Save as much as you can the more you have the better with the way things are atm. I just tryed to refinance my home that I own outright. Only wanted to borrow half of what my home is worth got knocked back. My partner brings home just over a 1000 a week and I get 350 a week and we have 3 dependents.