Sponsored When is the right time to find a home loan?
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When is the right time to find a home loan?

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Having the right mindset is a big part of being ready to purchase your first home, but being prepared also comes down to the dollars and cents. Here’s a guide on how to arrange your finances so you’re ready to buy.

Building a deposit

The Great Australian Dream of owning your own house is a goal for so many young Australians. So it’s understandable why many are impatient to start house-hunting as soon as they can.

But the first step to home ownership is building a deposit. Hitting weekend auctions and open for inspections is a frustrating exercise without a healthy deposit in your account. While it may give you an idea of property prices and auction etiquette, it’s also poses a risk for those tempted to buy on impulse.

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Some homeowners may buy property without a full deposit, thinking they can save the remainder by settlement date. But that plan falls apart should something unexpected occur such as a job loss, serious injury or major car repairs.

MoneySmart advises 20 per cent of the purchase price is healthy goal. It also recommends buyers adding in a buffer to account for the possibility of interest rates rising, which would cause loan repayments to increase.

Extra home buying costs

Don’t let those extra expenses take you by surprise. Factor in stamp duty, conveyancing and pest and building inspections costs. Stamp duty is the most expensive of these extra costs and the amount payable depends on which state you live in. While pest and building inspection costs are based on the size of the property.

These expenses are separate to your deposit.

Loan pre-approval

Start shopping around for a home loan by comparing loan rates and facilities. Find a loan that is flexible, suits your finances and doesn’t involve a lot of fees and charges.

The ME Basic Home Loan and ME Flexible Home Loan have no application or account-keeping fees. Both loans also give buyers the option of borrowing up to 95 per cent of the property valuation.

The Flexible Home Loan gives homeowners the choice of fixed, variable or split loans. And if you opt to pay $395 annual for the Member Package as part of the Flexible Home Loan, you won’t have to pay the $150 solicitor fee, $200 valuation fee and $150 fixed or split loan variation fee.


This content was sponsored by ME. Comparison Rate based on a loan of $150,000 for a term of 25 years. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply. Applications are subject to credit approval. For more information, go to mebank.com.au or click the logo below:

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