The number of loans given to first-time buyers is on the rise in Australia and if you’ve been thinking about buying a home but have been holding off, now is the time to act. But just jumping into the process can be a costly mistake. Instead, take your time and do your homework to help make the experience as seamless as possible.

Make a Budget

Before embarking on your home search it’s important to know how much you can afford. The first thing to do is to make a budget. Although many people are nervous about the thought, taking a serious look at how much you’re paying out for credit cards, loans or other expenses compared with your monthly income is essential. Once you see the facts in black and white you’ll have a much better idea of how much you’ll be able to afford for a mortgage as well as how much you’ll need to save.

Mind Your Money

The sooner you can start saving for your deposit the better. Doing this will benefit you in a couple of ways. First, the more money you have to put down toward your deposit means the more equity you’ll have in your property right away. This can translate into substantial interest savings down the road. In addition, lenders will be able to see that you are fiscally responsible and have been saving on a regular basis, making you a more attractive applicant.

Some lenders offer special savings accounts for first-time home buyers. These accounts can help those age 18 and over save for their first home and offer government contributions and low taxes. Another helpful tool for first-time buyers is the First Home Owners Grant, a tax-free payment of $7,000 paid by your state revenue office. Borrowers can apply for this grant when they apply for their loan.

Minimize Debts

Getting your debt under control is imperative if you’re planning to buy a house. If you’re drowning in debt it’s going to work against you and will translate into higher interest rates and limited lender options. Get rid of cards you don’t use or don’t need, pay off your car loan if possible and pay down balances you do carry.

Compare Rates

Home loan comparison rates are an essential part of doing your homework and luckily you can do this easily online. With just a few clicks of your mouse you can compare hundreds of mortgage loans and rates in one place so you can find the mortgage that best fits your needs – at the best rate.

The number of loans given to first-time buyers is on the rise in Australia and if you’ve been thinking about buying a home but have been holding off, now is the time to act. But just jumping into the process can be a costly mistake. Instead, take your time and do your homework to help make the experience as seamless as possible.

Tomorrow Finance provides tools to compare home loans from Australia\’s lenders. When you find the best home loan rates, you save!

Tomorrow Finance provides tools to compare home loans from Australia\’s lenders. When you find the best home loan rates, you save! http://www.tomorrowfinance.com.au

Author Bio: Tomorrow Finance provides tools to compare home loans from Australia\’s lenders. When you find the best home loan rates, you save!

Category: Finances
Keywords: home loans, home loans comparison