If you are looking to buy your first new house, then the task of getting a home loan may seem like a daunting, yet necessary, step for acquiring your new Perth home. It is true that buying your first home may seem scary and you may think that you will spend most of your income on your mortgage but there are a few key tips that, if you take to heart, will make your home loans seem much more manageable and make life in your new Perth home great.
Take it in Stride
Probably the most important thing to keep in mind when taking out your first mortgage is to not overextend yourself with too big of a loan. Even if the home you want is fairly expensive, considering downgrading a little bit or ensure that your monthly payments are manageable.
By rule of thumb, your monthly mortgage payment should be no more than 30% of your adjusted income. If you spend anything more than that on mortgage payments, there is a good chance that you will have to start sacrificing luxuries or outings and that’s not really necessary. Just take things one payment at a time and it should work out.
Avoiding the Trap
A trap that first-time home buyers sometimes fall into is the idea that it is good to take out a big mortgage at once because the interest rates are low. It may be tempting to take out a big loan then, but it will eventually catch up to you with bigger monthly payments and be more difficult that it’s worth.
If you need to get a home that is less expensive or sacrifice a little luxury, there is no shame in it. Do what you have to do to make payments, making them as manageable as possible.
The Mortgage Game
Being a first-time home owner comes with a lot of responsibility, one of which is finding out which loans are best to pay off your new Perth house. The key to surviving is to not take out a huge mortgage and try to limit your monthly payments, which will make the process much more manageable.
To learn about how we can help you with this, call Purely Finance at (08) 9472 9766.