How to Hop on the Property Ladder Faster
Property Ladder Blog

If your list of New Year’s resolutions begins with ‘become a homeowner’, then congratulations! Buying or building a new home is a big step, it’s true, but it’s also a super exciting one. To help ensure you start off on the right foot, take a moment to consider these important points.

There’s nothing quite like knowing that the house you return to after work each day is your own. But as house prices keep rising, how can you manage to hop on the property ladder? Consider these strategies to ensure you give yourself the best chance of becoming a homeowner.

Make ‘affordability’ your watchword

It makes sense to only choose a mortgage you can comfortably afford. Ideally, your mortgage repayments should be low enough that you can still set aside funds for other financial goals such as family holidays or children’s education. Don’t forget, it’s likely that the value of your first home will increase in just a few short years, allowing you to draw equity from it to reinvest in a larger property.

Connect with a mortgage broker

Find a mortgage broker to help you select a home loan that truly meets your needs and represents excellent value for money. Mortgage brokers are highly skilled at comparing offers from a whole range of financial institutions to find the mortgage that answers all your requirements.

Maintain a healthy credit history

Manage your credit card repayments wisely to avoid high interest rate charges and any negative impact on your credit score. Lenders will assess your credit history, look at how many credit cards you have and what their limits are. Stick to one or two and keep them at reasonable credit levels.

Join forces with friends

These days, more aspiring home buyers are opting for co-ownership arrangements with friends or other family members. It’s a great way to become a homeowner at a price that you can afford. Seek legal advice to consider how best to structure ownership and understand your mortgage obligations.

Get savvy about financial support

There are four main types of support that may be available to you. Check if you’re eligible for:

Home purchase assistance – open to eligible low-income households to boost their access to home ownership.

First Homeowner Grant – a one-off $10,000 grant for low-income first home buyers who are building a new home with total contract valued up to $750,000.

The First Home Super Saver scheme – helping first home buyers save faster by making voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into super to save for a deposit. You can then reapply to release funds to purchase your home.

The First Home Loan Deposit Scheme – purchase a home with as little as 5% deposit without the need to take out lender’s mortgage insurance. That’s a big saving right there.

With a bit of research and by exercising some budgetary discipline, it’s entirely possible that home ownership may be well within your reach. Make sure to check out the Eden Brae website for more great info on grants and benefits designed to help you get your foot firmly on the property ladder without delay.