The Ten Most Common Questions Asked By First Home Buyers

3 min read

A house can be one of the most personally and financially rewarding investments you’ll ever make. But if you’ve never bought a home before, the process may seem a little overwhelming. One of the best ways to ensure the process is not overwhelming for a Sydney first home buyer is to be well educated and properly prepared for the process.

There are many questions that home buyers seem to ask quite often. To help you, here are 10 of the most frequently asked questions from a Sydney first home buyer:

1. What’s the first step of buying a home?

Unless you’re paying cash for your house, you will need a mortgage. To know how much you can afford, you need to get pre-approved for a plan. You must first talk to your mortgage broker in Sydney and get a mortgage pre-approval.

2. What do I need to qualify for a loan?

Among other things, mortgage lenders will consider employment history, credit score, debt-to-income ratio, how much you plan to put down on your home, and stable employment history.

3. What are the other costs other than the loan?

The down payment and lending fees are extras that will have to be paid along the way. Most lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. 

4. Should I get a fixed-rate or adjustable-rate mortgage?

One of the most common questions to ask as a Sydney first home buyer is whether to get a fixed-rate or an adjustable-rate mortgage. Your mortgage broker in Sydney can help decide which one is best for you. 

5. How much do I need for a down payment?

Saving for the down payment is the greatest obstacle for first-time homebuyers. Lenders expect between 5% to 20% for a down payment. It varies according to the lender’s requirements, and the type and length of the loan. 

6. What is the First Home Buyers Assistance Scheme? 

Under the First Home Buyer Assistance Scheme (FHBAS), a Sydney first home buyer may get a concessional rate of transfer duty or even an exemption from paying the duty altogether.

7. Am I Eligible for the First Home Buyers Assistance Scheme? 

First Home Buyers Assistance Scheme is a type of financial assistance that is available for people who are looking to buy a new home, an existing home, or vacant land. Contact your mortgage broker in Sydney to learn more about this scheme. 

8. What is PMI?

PMI stands for Private Mortgage Insurance. Most lenders require that you pay for PMI if you put less than 20% down on a home, and PMI would protect the lender if you defaulted on your loan payments. If you’re unaware of this, contact your mortgage broker in Sydney and let them help you. 

9. What is refinancing?

Refinancing entails getting a new mortgage to replace an existing one, often to secure a lower interest rate, lower monthly payments, or get cash out. 

10. How do I get the best Mortgage? 

Use a mortgage broker in Sydney to help you find the best mortgage. It is time-consuming to learn about the various rates and terms of mortgages. Mortgage brokers can help you find the best deals. 

If you’re a Sydney first home buyer looking for a mortgage broker, contact us at https://freshwaterfs.com.au/contact/

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