First considering options

Hi,

Ive been considering buying a house but im not sure where i should start given i have a 25k deposit which ive saved up quite quickly since moving in with my parents.

Ive chatted with cba about going down the application for fhlds but ive held off until i do some more reasearch. Should i get a broker?

I earn 70k p.a. long term FT employment, no debt apart from my fairly hefty student hecs loan.

Will I struggle to get finance for a 450k new house build in Melbourne? Would it be possible for me to buy an established property without the fhlds by just footing the lmi.

Some hot tips would be greatly appreciated!!!

Cheers
Michael

 

1. Get a broker yes, otherwise you're limiting yourself to one bank.
2. Your LVR (Loan to Value Ratio) will be quite high, a $450K house with $25K deposit + First Home Buyer incentive of either $10K or $20K depending on if regional area or not, not too bad if you get a FHLDS New Home Grant Spot - these are fast running out by the way
3. Borrowing capacity should be ok at that level of purchase price
4. If you buy existing at the same price point and don't get the FHLDS then you would be better of saving a little more first as your base LVR would be 94% then LMI gets added on top and will limit you choice of lenders at that LVR.

 

Thanks Lindsay,

I've found broker through a friend.

I dont know what i want to be honest, but a roof over my head and some security would be nice!

I dont want to rush into this, just because of the incentives to build - so ill do some serious research first. Its easy to get swept into the hype... which is why im glad i found an old school forum on the topic.

Is there anywhere else i should look?