First home buyer | Mortgage broker Mount Barker, Strathalbyn and Littlehampton

Start your home loan journey today

Buying your first home in Mount Barker, Strathalbyn, Littlehampton and the surrounds

Buying your first home can be both exciting and daunting! With so many new concepts to get your head around, it’s easy to feel overwhelmed by this huge financial and personal leap. And when you’re trying to search for a home and intend inspections, the last thing you need to be worrying about is navigating hundreds of home loans and their intricate details. That’s where Alex comes in as your local mortgage broker - he will take care of all the paperwork, including finding you the best loan solution and completing your application. It couldn’t be simpler when you work with Alex!

What is LMI and how can you avoid it?

Lenders mortgage insurance, otherwise known as LMI, is an additional cost that you will usually be charged if your home deposit is less than 20% of the purchase price. This fee is charged by your lender because a loan is considered more high risk if the deposit is not at least 20%. Fortunately, there are a few ways to avoid paying LMI and therefore save some cash during the home loan process. These include some government assistance schemes as well as using a guarantor.

Your guarantor, who is usually a close family member, acts as security on your loan as an alternative to LMI. Though this can be a great way to get into the property market with a smaller deposit, it’s important to remember that your guarantor will be responsible for your loan if you cannot afford the repayments. Does a guarantor sound like a viable option for you? Take a look at our free guide to guarantors to learn more about your options.

Calculating your borrowing power

One of the most important steps in buying your first home is working out your budget. This will likely be determined by your borrowing power, which can vary based on your income, debts, and even which lender you choose. When you start talking to Alex, he will be able to examine your finances and advise you of your borrowing power. This allows you to narrow down your property search and start planning out your repayment budget. And in the meantime, why not try out our free and easy-to-use online borrowing power calculator to get a better idea of your potential.

Try out the calculator

Guide for first home buyers

Thinking about taking the leap to buy your first home? Our free guide will take you through all the steps necessary with plenty of helpful tips and advice.