Top 10 Tips for First-Time Homebuyers in 2024

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New research indicates a significant surge in first-home buyers planning to enter the property market in 2024, with a survey by Resolve Finance revealing a notable increase from 4% to 14% in the past six months. If you're among those considering your first home purchase this year, here are expert tips from Mozo finance expert Peter Marshall and Resolve Finance's Managing Director, Don Crellin:

  1. Calculate Your Borrowing Power: Determine how much a lender will let you borrow by considering your income, expenses, and existing debts.

  2. Explore Grants and Schemes: Investigate First Home Owners Grants (FHOG) and other government schemes available in your state to support first-time buyers.

  3. Plan for Additional Costs: Beyond the deposit and loan repayments, factor in costs like stamp duty, maintenance, home insurance, conveyancers, property inspections, pest inspections, and council rates.

  4. Secure Home Loan Pre-approval: Gain confidence in your maximum loan amount by obtaining pre-approval, but be cautious and read the fine print.

  5. Impress Your Lender: Organize your finances, provide supporting documents for income and expenses, and demonstrate genuine savings over time.

  6. Research Locations and Property: Identify areas with growth potential, research pricing trends, attend open houses, and consider alternative suburbs if prices are prohibitive.

  7. Avoid Lenders Mortgage Insurance (LMI): Skip LMI to avoid being stuck with one lender until you reach an LVR under 80%.

  8. Negotiate on a Private Sale: Don't hesitate to negotiate even after an offer is accepted, especially if based on a building inspection report.

  9. Don't Pay for Unused Features: Evaluate home loan features like offset accounts and choose only what you'll use to avoid unnecessary costs.

  10. Compare Home Loans: Understand different home loan types, compare terms, interest rates, and fees, especially when deciding between variable and fixed-rate home loans.


Source: Mozo

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