Buying a House
Here are the basics to guide you through the house buying process.
Research a lot of properties
- Compare prices for similar styles of houses or units.
- Look at as many as possible. It costs nothing to ask for a look.
Arrange possible finance (pre-approval)
Make a list of all your expenses and income and use our Borrowing Power calculator.
You can also phone our Loan Line on 1300 367 500.
We’ll give you a good idea of where your price range should roughly sit.
Choose a property
You’ve found the dream home. Congratulations!
Make a formal loan application and obtain approval
Complete a formal loan application and get the loan approval before you exchange contracts. You'll need to gather some paperwork, such as proof of income, before things can be finalised.
Organise Building and Pest Inspections
This is so important, it’s worth spending the money. And your lender will probably insist that you do. Hidden nasties, such as termites or dangerous wiring, will be your total responsibility if you buy the place.
Each inspection typically costs around $300 and should come with a written report. Who to choose is up to you. By all means, get some recommendations from other people. Some companies can do both inspections, saving time and hassle.
Organise a Conveyancer
This is a legal professional who does a comprehensive check of things which may affect your purchase of the property before contracts are exchanged. For example, the conveyancer should be able to determine whether there are any caveats on the property, council rates, or any outstanding problems with the authorities regarding the property. It’s good to leave around $3,000 for conveyancing, but it’s usually a lot less.
Exchange contracts (deposit cheque required)
Once the contracts are exchanged, depending on your contract, you will have a number of weeks until the final money is required. There is not a lot you can do in this period except get excited that you are nearly there!
Settle and move in
Congratulations! Get yourself moved in and try to pay off as much of your mortgage as you can in the first year or two.
Info for Newbies
Is it a good time to buy?
The equation is simple. Buy when the market is low, sell when it’s high.Having said that, nobody has a crystal ball. It still requires a judgement call as to whether the time is right for you personally.
What do I do first: find the house or get the loan?
You can do either. If you have a house that your heart is set on, you can apply for a loan.Or, you can get a loan ‘Approved in Principle’. Then you can look for a property that falls into your price range.
How do I get the First Home Buyers Grant?
If you’re an Australian resident, you are 18 or older, and you haven’t bought a property before, you can apply for the grant of $14,000. If you are applying with a partner, they also need to not have bought property before. We can do all the paperwork for you and get the grant money in. It is usually received upon ‘settlement’ of the loan. If you’re eligible, we’ll consider it as part of your deposit.
How will my application be assessed?
There are three main things we look at when considering a loan application:
- Capacity
This is your ability to make the repayments. We have to take into account all of the other things you need to cover: bills, food, phone, some spending money and any other financial commitments (link to Budget Calculator). that you have. The last thing anyone wants is for you to have hardship.
- Savings History
This is a demonstration of your organisational skills—your ability to put money aside. It usually doesn’t need to be a lot. Small consistent amounts are better than nothing. But gifts are okay too.
- Credit History
This is a common reason why loans get declined. Unfortunately, the person has been reported to a credit reporting agency such as Veda Advantage as having not paid a debt of some kind. This is often an unpaid phone bill and the consequences can outweigh the amount in the first place.
By rights, the debt has to be overdue to get a listing on a credit report. And the company must give warning before they do it.
Defaults stay on your credit report file for five years. Bankruptcies and court actions stay there for seven years. Under Freedom of Information, you are allowed to see your credit file by contacting an agency such as Veda.
Questions?
If you have any questions, please contact us. 
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