1. Not choosing a home loan product that is right for you

Most savvy buyers will consult an independent mortgage broker to do some serious calculations to determine their borrowing capacity. 

Senior Mortgage Consultant of Loan Market, Anthony Ly said many first home buyers rush to sign up to the lowest rate that is offered to them.  But what they may not realise is that they end up paying more in the long-run due to hidden fees or not having the benefit of an offset account. 

“A key thing to consider is whether you can afford the loan repayments for the duration of the loan even after you buy the property. “

“To determine my clients’ borrowing capacity, I take the time to understand their individual needs and provide them with various loan options to compare before they commit”, said Anthony.

2. Signing the contract without negotiating the terms in your interest

The second you sign the contract it becomes legally binding. This means you can lose any deposit paid if you cancel the contract after contract exchange. Speak with your lawyer early to obtain legal advice on any changes to onerous terms that they can negotiate with the vendor.  For example, you would not want to allow the early release of your deposit before settlement or contribute to any land tax that should be paid by the vendor. 

Purchasers who know better than to risk losing thousands of dollars will request amendments to the contract before they sign it.  Contact info@omegalegal.com.au for a same-day contract review.  

3. Ignoring the value in obtaining a building or strata report

There is value in engaging an independent expert to inspect the property before you buy.  Keep in mind to look out for any major faults such as structural issues, signs of termites and gas or water leakages.

If you are purchasing a strata property, purchase a strata report or obtain one from the agent if they have a copy.  You want to be satisfied with how the strata scheme is being managed, its financial state and any onerous by-laws or special by-laws that may impact your everyday life.  Familiarise yourself with any by-laws that relate to renovations, parking restrictions, owning a pet and even basic things like hanging your laundry on the balcony.

4. Not knowing the conveyancing process and rushing to settle on-time

Not knowing what to expect when you are purchasing a property for the first time, or even the second or third time, can cause unnecessary rushes that may delay settlement.

Our simple conveyancing infographic tells you all the key milestones for you to plan ahead when you are ready to buy a property.

This article features Anthony Ly, Senior Mortgage Consultant from Loan Market. Anthony looks after the financial needs of first home buyers, business owners and property investors around NSW. He is well-known for his personable nature and expertise in securing a variety of loan options that are tailored to his clients’ needs.

Contact Anthony Ly on 0477 887 667 or email a.ly@loanmarket.com.au if you are looking for an experienced broker who will act in your best interest.