The Mortgage Supply Co | 29 Apr 2019 | First Home,Mortgage Tips

6 Expert Tips For First Home Buyers

The Mortgage Supply Co | April 29 2019 | First Home, Mortgage Tips

6 Expert Tips For First Home Buyers

first home buyer

We understand that buying your first home can be a nerve-wracking task.

Maybe you're still confused whether you want to buy a house or an apartment, or maybe you're trying to suss out the mortgage and chasing lenders.

Fact is, if you have experts on your side to guide you in the right direction, you could just be months away from moving into your first home. It always seems impossible until it's done.

Here are the 6 expert tips for first home buyers:

1. Keep your credit and conduct neat and tidy

Fact is, lenders will have a thorough look at your credit score.

Where there is a lower credit rating, there are still opportunities for you. It is time to contact an experienced Mortgage Broker to help. Contact us to learn more. 

Having a good credit score makes things a heck of a lot easier. Find out more about credit scores here.

2. Check if you're eligible for a KiwiSaver HomeStart grant

When it comes to buying your first house, you should absolutely accept any sort of financial help that you can get.

Did you know? You may be eligible for HomeStart grant if you have been contributing to KiwiSaver for more than 3 years.

There are some other conditions as well which you can read here.

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3. Clean up any short-term debts

Your mortgage will probably be the biggest debt that you'll ever take. On a positive note, this debt will help you build an asset and have your own space, without worrying if the landlord would let you install the new wallpaper or not.

That's why it's wise to clean up any short-term debt and reduce those store and credit card limits. If you don’t need them, feel free to cut them up.

4. Don't hesitate in seeking advice

Buying a house is a big-time investment. Rest assured, there are professionals out there whose only job is to sell houses. They're aware of the challenges you might face and they can warn you at the right time if you make a mistake.

So, put together your A-Team - lawyers, real estate agents, builder to check prospective houses out, and of course, a top notch mortgage broker.

5. Try creating the perfect house rather than buying one

"A perfect First Home that doesn't need renovation is typically priced at the top end of the market. Be prepared for your First Home to have good bones that you can put your creative flair on and make it your perfect home," says Jonathan Whorwood, an Authorised Financial Adviser at Mortgage Supply Co.

Treat your first home purchase as your first property investment. Take a leaf out of the property investors handbook, look to buy under value and then add value. By shopping smartly and then adding your own touches you get to increase the value for either sale down the track or you will create equity to take that first step into buying your second property.

Buy what you're financially comfortable with; you can always roll up your sleeves and renovate it later, as Jonathan recommends. 

6. Don't wait to gather the 20% deposit

Do you feel like you can't buy a house because you don't have enough money to pay the 20% deposit? Well, you'd be relieved to know it’s a myth that banks need a 20% deposit.

"You might be ready to buy sooner than you think. We can make it happen for you with as little as a 10% deposit," says Jonathan.

It's true, that due to LVR restrictions, banks can only issue one in ten mortgages with less than 20% deposit, but it's still possible!

There are certain factors which will determine whether banks are willing to give you a mortgage with less than 20% deposit or not, and knowing the right people is one of the most important, if not the most important, factor.

We know who’s hot and who’s not, and will take your loan application to the right provider at the right time.