Deciding when you are ready to buy your first home plagues a lot of people. It’s a big financial commitment and as most of us know, life doesn’t always go according to plan. The biggest factor for most is the monthly repayments but often we overlook the other home loan costs that come with purchasing our first home.
Buying your first home will probably be the greatest financial milestone to occur in your life. It can be exciting, yet stressful if you haven’t got your paperwork and funds sorted out.
To assess whether you are ready for home ownership start gathering all the facts on the total costs involved, as there are additional costs that first home buyers often overlook.
Additional costs of a home
- Stamp duty
- Mortgage insurance
- Building inspections
- Pest inspections
- Moving costs
- Cleaning costs
It’s vital to calculate these costs into your budget so you won’t be caught out and fall short of much needed funds.
Implementing an effective budget will not only help you manage your overheads but will also help to reduce stress in the long run.
Now you have your head around some of the extra fees you could be stung with, it’s time to begin shopping around for a great low rate home loan. To compare some of Australia’s best home loans use the RateCity home loan comparison tool and repayment calculator.