Guidelines to selecting the right finance for your new home

1.Calculate your budget

No one wants to overstretch themselves financially when they purchase a new home, so before you start house hunting it is important that you determine
your available budget. Without this step you could over commit yourself to a mortgage, which might challenge your lifestyle and your future, if you
are not careful.

Circumstances can change, so always be conservative when forecasting your budget over the next 5 or 10 years. You need to consider not only the cost of
the build, but also furnishings, appliances, landscaping and fences in your budget.

One of the best strategies is to put together a monthly budget and keep track of everything you spend each week. It is also a good idea to save an emergency
pot of money for those unexpected expenses which always happen.

Another good tip is to calculate the difference between your current rent and your anticipated mortgage repayments and to save this extra money. You will
quickly find out if you can manage your current lifestyle, based on your prospective loan repayments, and you will be saving extra money at the same
time.

2.Choose the best loan for your lifestyle and financial situation

There are lots of different home loans available on the market at any one time and working your way through them can be stressful and tedious. There are
however, certain elements to consider when you are deciding on a home load provider, including:

  • Whether you want a fixed or variable rate home loan.
  • Do you want to make weekly, fortnightly or monthly payments?
  • Do you want a redraw facility or the ability to alter your payments in the future?
  • What penalties will you be charged if you terminate your mortgage?
  • Do you want the ability to make additional payments on the fly?

3.Compare different home loan packages

As there are a multitude of home loan providers on the market at any one time, a tip here is to contact a mortgage broker, who can guide you through the
morass of home loans, helping you to select the best one for your situation.

4.Great Start Grant and first home concessions in QLD

If you have not held a home loan before, then don’t forget to bring this to the attention of your broker or mortgage provider. There are two different
types of grants you can apply for in QLD – first home concessions and the Great Start Grant – and they can make a big difference to your start-up costs, helping
you with your deposit at a time when it will be most appreciated by your family.

Don’t forget that you have to pay stamp duty (also called transfer duty) when you purchase a house or land in QLD. So you need to factor these additional
costs into your budget. You can calculate the approximate stamp duty payments on the QLD Government website.

For more information on buying or building your new home, call Thompson Sustainable Homes on 1300 904 040, complete our online enquiry form or drop into our showrooms at 167-171 Brisbane Road, Mooloolaba, QLD.

 

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