Low interest rates can trick people into spending more than they can afford, leaving first time home buyers in a precarious position. However, the inverse can also be confusing, as higher interest rates can result in falling house prices that attract buyers.

As a first time home owner, it’s tough to know where to set your budget and how to find the best value home loan. Fortunately, HomeLoansAustralia.com makes it easy to compare home loans. What’s more, you can chat to a mortgage expert for personalised advice on how to set up your loan and maximise your savings.

Here’s How You Do It:

Step 1: Select your type of property below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

First HomeBuying AgainInvestmentRefinancing

It’s wise to be cautious when you approach your home loan. Here are three tips for avoiding risk with your first mortgage.

1. Shop around to see what’s on offer

   With so many lenders on the market, there’s a range of interest rates and products on the market. Don’t be afraid to look into boutique lenders as well as big name banks, because a well-known name doesn’t guarantee a good deal. Smaller lenders often offer a great deal and excellent customer service.

2. Set up fortnightly repayments

   You’ll pay less over the life of your loan by upping the frequency of your repayments from monthly to fortnightly or weekly. This will also reduce the amount of interest you pay over time.

3. Structure your loan to pay principal + interest as early as possible

   The more you pay off in the beginning, the more you’ll save in the long run. Knocking a small amount off the principal in the early days of your loan can slash years from the end.   

4. Take advantage of first time homebuyer grants where possible

   State grants are available to first time homebuyers that can save you thousands right off the bat. Ask your Home Loans Australia consultant about the grants on offer in your states to see whether you are eligible.

5. Be realistic about your loan

   It can be an exciting surprise to hear that you qualify for a loan of more than you thought, but that doesn’t mean you should max out your budget. Carefully consider what you can afford in order to meet your other financial needs, such as raising a family or travel.

Ultimately, interest rates will determine where house prices go. Statistics suggest that if mortgage rates go up by 2 percent, Australian house prices are likely to fall by 5-10 percent.*

First time home buyers can benefit by talking to a Home Loans Australia mortgage expert, who can guide you in the right direction. You’re under no obligation to buy, and you’ll gain the knowledge that lets you make an informed decision on one of the most important purchases you’ll ever make.

Get Started Now:

Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.