Have you ever struggled to save for a deposit for your first home? Then you’ll know that’s one of the most daunting financial obstacles most people will ever face.
Many couples and individuals will penny pinch for years to save for a deposit. Missing out on holidays and meals out, and having to budget when it comes to clothes and other discretionary spending. And we do it because the end result is well worth the effort.
So it’s no surprise that after so many years of saving, the stress and pressure associated with getting a mortgage can bring with it mixed emotions. This is almost certainly the biggest financial commitment you will ever make, after all. And so there are nerves, excitement, fears and worries all bundled into one high-pressure moment.
And then – you submit the paperwork, dot your i’s and cross your t’s and get your home loan approved. And when the agonising/draining/exciting house hunting ends in you actually signing on the dotted line and becoming a homeowner, you’ve finally done it. All that hard work to achieve one goal, and you’ve made it. You’re a homeowner. Congratulations. Pop the champers.
This is the point when many people think that the hard part is over. But think again…
Because you’ve made it this far, only to face a whole new host of expenses and demands on your finances.
1. Home maintenance.
Unlike the days of renting, when a quick phone call to your landlord or agent could fix a broken oven or leaky pipes, now these costs are all yours to bear. Things can and do break down, especially if they’re not maintained properly. Think gutters, heaters, fixtures, and appliances.
Council rates vary between municipalities and within states, but generally, Councils charge rates based on a calculated percentage of the value of your home. The more valuable your home is, the higher rates you will pay. It’s an annual cost that must be budgeted for.
3. Home and contents insurance.
You may have had contents insurance, but with your new home you’ll need to cater to the additional property insurance. Home and content premiums will be higher than contents insurance you’ve had in the past, but it’s so, so worth it.
4. Transport costs.
As housing prices continue to spike in some Australian cities, a lot of people end up choosing a home that’s further from the CBD from where they rented. This may mean additional transports costs for the commute to and from work, whether it be through higher petrol costs or additional public transport costs.
5. Life changes.
Changes to your situation, planned or unplanned, can suddenly and drastically alter your financial landscape. Babies, career changes, or challenges with health or being made redundant can put the spotlight firmly back on your financial commitments, and change the course of your priorities.
Sorry to be a spoilsport, but it’s important to realise that securing your home loan is not the end of your new financial journey; it’s actually just the beginning.
Choice Home Loans consultants are experts at helping people live their dream of home ownership, and ensuring they have the right home loan that suits their needs.
Whether you’re looking for your first home or thinking about a change — renovating, upgrading, downsizing — it’s important that you have the right loan for your life and circumstances. Your local Choice Home Loans broker can help with a Home Loan Health Check no matter what stage you’re at. Phew.
Do you own a home? How did you save for it? If not, are you planning to?
Check out the video below for more essential info on home loans.
Choice Home Loans is a national mortgage broking business that has helped thousands of Australians with their lending needs since 1997. Undertake a Home Loan Health Check with a Choice Home Loans broker before 30 November and you’ll go in the draw to win $10,000*. Whether you’re looking for your first home, or thinking about a change — renovating, upgrading, downsizing — it’s important that you have the right loan for your life and circumstances. Your local Choice Home Loans broker can offer you access to up to 30 lenders, and guide you through the options available.
*Excludes investment lending. Click here for competition terms. Competition closes 30 Nov 2015. NSW Permit No. LTPS/15/05228; ACT Permit No. TP15/06549; SA Licence No. T15/1243
This article was prepared for Pennley Pty Ltd as trustee for the Pennley Unit Trust ABN 53 348 526 415 trading as Choice Home Loans a Credit Representative (392528) of BLSSA Pty Ltd (Australian Credit Licence 391237).