Buying a Home

Buying a home is likely to be the biggest financial commitment most people make in their life. Whether you are purchasing a new flat or an established house, getting a handle on your personal financial situation will enable you to make informed decisions about the property you can afford. Here are the factors you need to consider when thinking about buying a home.


The first step to buying your home is saving for a deposit. Most lenders require a minimum deposit of 10 percent of the sale price. However, the more money you can put down as a deposit, the better your financial situation will be going forward. A larger deposit often means lower interest rates, means you will be borrowing less and therefore paying interest on a smaller amount, and be able to pay it off earlier – in some cases, by several years! Take an inventory of your finances and budget to maximise your savings to build your deposit.


Arrange a mortgage. You will need to provide the bank with the details of your income and the size of your deposit. They will then determine how much they are willing to lend you and the interest rates on the loan. Shop around different lenders to get several quotes.


Besides your deposit, there are also a number of fees involved with buying a house that you need to budget for. These may include:

  • Conveyance
  • Solicitor’s fees
  • Building inspection
  • Stamp duty (taxes associated with purchasing property)
  • Registration fees for the property and mortgage)

Fees will vary between service providers and between states.


You may opt for a mortgage with a fixed interest rate, so you know exactly how much your repayments will be. However, some mortgage deals have variable rates. Be aware that if interest rates rise, so will your repayments. Budget so that you have the income to meet increased repayments.

If you understand what your financial situation enables you to purchase and you budget for all the various costs involved, buying a home should prove a lot less stressful. Now, you just have to go out and find your new home!