How to get a Home Loan as a First Home Buyer

Owning your first home is an unforgettable experience that everyone should enjoy… Unfortunately, for many, there are multiple hurdles that you need to get over before unlocking the door to your new home. We’re here to help you overcome these hurdles in no time, and what better way to start than home loans. Navigating the world of home loans can feel like trying to solve a puzzle. But don't worry, let us be the ones that solve it for you! This guide will walk you through the steps of securing your first home buyer loan, from saving for a deposit to choosing the right loan type. Let’s begin! 

Saving for a Home Loan

Saving for a home can feel like a marathon, but with the right approach, you'll reach the finish line in no time. The first step is to get an idea about your financial position and figure out your realistic situation. Next, sit down and track your spending, from the big hitters like rent to those sneaky subscription fees. Every dollar counts!

Once you have a clear picture of your income and expenses, you can start setting aside money for your home deposit. Generally, you need to deposit at least 20% of the property's value (you can deposit lower by paying lenders mortgage insurance). The more you save, the less you'll need to borrow, which can mean lower interest payments over the long run.

Remember, every dollar saved brings you closer to your new home! Next, let’s talk about the different types of home loans available for eligible first home buyers.   

Types Of Home Loans Available 

We understand that the many loans available can feel overwhelming, with countless options and technical jargon. But let’s help break it down for all home buyers in the simplest of terms. There are several types of home loans, each with its own perks and pitfalls. Popular options include:  

• Fixed-rate loans - Offers stability with predictable monthly home loan repayments. 
• Variable-rate loans - Provide flexibility but come with the risk of interest rate fluctuations.
• Construction loans  - Designed for those building a new home, providing funds as the build progresses.
• Interest-only loans - This lets you pay just the interest initially, but the total amount is due later.
• Guarantor loans - If you don't have a large deposit, a family member can help and act as security.

Remember, there's no single best option, as everyone’s circumstances are entirely different. It's essential to weigh up your own financial situation and long-term goals to help you decide on the loan that best suits you. 

Getting your first home loan with Mojo Homes  

So, you've saved up a house deposit and are ready to dive into the home loan market. Great! But with so many options out there, where do I begin? That's where Mojo Homes and our partners at MyChoice Home Loans come in.

Should you go directly to a bank or use a mortgage broker? Both have their pros and cons. Banks offer convenience, but a mortgage broker can shop around for the best deal, saving you time and money. Thankfully, the MyChoice Home Loans team are mortgage experts who can help you navigate the complex world of home loans.

Remember, every loan is different. Some offer extra features like offset accounts or redraw facilities, but these often come with higher fees. Our team can break down the costs and benefits of each option so you can make an informed decision.

If you're set on building your new home, MyChoice Home Loans can tailor a loan package to suit your needs. We can help you connect with MyChoice Home Loans, granting you access to a range of construction loans and building packages to help you every step of the way.

Securing your first home loan doesn't have to be stressful. With the right information and support, you can confidently navigate the process. We've covered the basics, from saving for a deposit to understanding different loan types.

Ready to take the next step? Reach out for expert advice and personalised support. Let's unlock the door to your first or new home sooner with the Mojo and MyChoice Home Loans team!