2019: The Rise of the First Home Buyer

First Home Buyer
First Home Buyer

Guide for First Home Buyers

This New Year, let us guide you through the latest home loan rates, how to use the home loan calculators and guide to own your first home. Reduce Home Loans offers you this year’s housing market prediction, know how much you can save if you’re going to purchase a property.

Housing Predictions for 2019

According to The Australian Financial Review house values will continue to drop in 2019. Stephen Koulas of Market Economics predicted that house prices would go down between 5% to 7.5% on average across Australia. “From the 3rd quarter in 2019, I am forecasting some stability in prices as supply and demand forces underpin new activity,” Mr Koulas said.

Shane Oliver of AMP Capital expects the prices to gall about 4% concentrated in Sydney and Melbourne. Many more finance and economics experts agree with these insights about next year’s housing market values. Overall it will be a great time for buyers in 2019.

According to CoreLogic, the strongest area for housing growth was suburban Tasmania; with many Tasmanian suburbs reaching over 10% growth in value. This trend will continue and could see potentially high return for investors looking at purchasing interstate.

The areas showing the greatest falls in prices over the last 12 months were both metro and rural NSW, and Melbourne metro. On the other end of the scale, these areas saw an average fall of -9% property value. First home buyers, take note. This is the trend to watch for housing affordability in 2019.

This is the chance for First-Time Home Buyers to take advantage of the rising affordability in the housing market. Are you one of those people planning to take advantage of the price drop? Not sure if your savings are enough to apply for a home loan? Are you prepared for the exciting journey of having your first home? Reduce Home Loans has the answers to your questions. Your Personal Finance Manager will guide you throughout the whole home loan application process, so you can apply with confidence.

Who Is Reduce Home Loans

Want to know more about us first? Reduce Home Loans is a fully owned and operated Australian Finance Brokerage. We’re a multi award-winning Australian Owned and Operated Home Loan Company. Since 2010 we have been passionate about helping our clients find not only the lowest Interest rates on the market but Home loans that are tailored to their individual needs. We provide our customers with the lowest interest rates possible and help them find loans that meet their needs. It’s how we get our kicks, and the reason we get out of bed in the mornings!

First Home Buyer? Here’s a Guide!

Purchasing your own home can be exciting and stressful all at the same time. Reduce your stress with our guide to make sure you get the house you want and get approved for the loan. The upcoming predictions of low rates and low house prices make it more tempting to dive right in and make a purchase.

As a first home buyer, are you in the right stage and situation to take the plunge? Having your own home also comes with great responsibility and we are here to assist you before and after you purchase your property.

One of the common mistakes first home buyers make is searching for a property without knowing your borrowing capacity. Avoid the disappointment of finding a dream home… only to find you can’t afford it! Do your research and calculations to get ahead. The key is to be patient, plan ahead and you’ll soon pat yourself on the back and find it was well worth the effort.

Check your eligibility for a home loan and your borrowing ability.

Keep in mind as a First Home Buyer you may be eligible for a First Home Owners Grant. Check out our stamp duty calculator to see how much you could save on stamp duty as a First Home Buyer in your state.

Know your borrowing power based on your income and expenses. Borrowing power is the amount you could potentially borrow with a respective lender. Did you know the more effectively you save, the stronger your loan application looks to the lender?

Check and maintain a good credit score

In Australia, your credit score tells institutions how well you pay credited loans, debts and bills. It all adds up.

Check your credit report before applying for a home loan. Late or missed payments on any debts will affect your score and can hinder home loan applications. It will surely affect your borrowing power.

How do you keep a good credit score? Pay your bills on time and show the lender that you are organised across all your financial commitments. Use our budget calculator to monitor your expenses and your savings as well. Read our tips on maintaining a good credit score and how you can improve it.

Finding A Home

You have already covered the financial aspect, you know how much you can borrow and you’ve already sorted out your debts. The fun part begins! House Hunting!

Careful. Just because you’ve settled your finances doesn’t mean you can dive into any property you set your eyes on. It is indeed tempting but don’t be deceived by what you see. Be sure that the property you want also fits your needs. House size and locale play crucial roles in finding the property right for you. Found the perfect location? Next is to inspect the property you’ve chosen.

The more you do your research the better. So, take your time, don’t be in a rush and enjoy the journey.

First Home BuyerGet the Best Deal!

Again, research, research, research. You can look up lenders and compare home loans online or speak to one of our brokers. Once you have decided on a loan and interest rate, your broker will happily take you through all the documents and requirements. After you find the best deal, understand the process, and decide on your property, you’ll reap the benefits of the low market prices this year as a first home buyer! Check out Reduce Home Loans’ FAQ for any other questions you have in mind.

Our online home loan calculators can also help you estimate your mortgage payment options. Please remember our calculators are only an estimation of the actual amount, contact Reduce Home Loans to speak to one of our qualified Personal Finance Managers and get a full assessment over the phone.

After closing the deal, the legal work starts. Make sure to read your contract thoroughly and check for all details and changes that you may want to do before signing.

Congratulations! You are now ready for your own adventure in owning your first home.

(29)    For the Rate Cutter Variable where the borrower pays $1170 upfront fees then a corresponding loyalty discount of 0.10% p.a. off the Rate Cutter Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(27)    For the Investor Rate Slasher Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Slasher Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(26)    For the Low Rider Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(25)    For the Economizer Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Economizer Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(24)    For the Super Saver Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.10% p.a. off the Super Saver Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(23)    For the Super Saver Variable where the borrower pays an upfront fee of $1170 then a corresponding loyalty discount of 0.15% p.a. off the Super Saver Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(22)    For the Economizer Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.11% p.a. off the Economizer Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(21)    For the Investor Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(18)    For the Home Owners Dream 1 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(20)    For the Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(14)   For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(12)   For the Investor Rate Lovers Interest Only where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.07% p.a. off the Investor Rate Lovers Interest Only rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(11)   For the Wealth Maximizer 3 year fixed Principal & Interest where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(10)    For the Wealth Maximizer 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(9)    For the Home Owners Dream 3 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(8)    For the Home Owners Dream 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(7)    For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(6)    For the Investor Rate Buster Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Investor Rate Buster Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(5)    For the Rate Buster Variable where the borrower pays an upfront fee of $150 then a corresponding loyalty discount of 0.05% p.a. off the Rate Buster Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(4)For the Rate Slasher Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.08% p.a. off the Rate Slasher Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(3) For the Investor Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Lovers Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(2)For the Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Rate Lovers Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(1) For the Low Rider Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(28) For the Rate Crusher 1 Year Fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.05% p.a. off the Rate Crusher reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(19) For the 1 Year Fixed Wealth Maximizer where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the 1 Year Fixed Wealth Maximizer reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.