Now that our economy seems to be going in a stable position and the currently affordable home loans available in Australia, it might be the right time to start thinking about finally going for that Australian dream of home ownership.
In any case, you must consider if it’s the best time for you with all the external factors like competitive pricing and low-interest rates. You want, need to know for sure. Here are some surefire signs that you’re ready for homeownership.
You are debt-free. You have finally kicked debt in the face by completely playing all outstanding credit card or car payment debt, so you don’t have the stress of owing extra bills that reduce the funds you need to save and be available to pay for a mortgage. The extra cash flow that will not go toward debt payment is vital to make sure you will be able to cover all expenses that come with being a homeowner, which include property tax, repairs and maintenance, homeowners’ insurance, and furnishings.
You have a steady income. This actually comes in many forms. You could be in a good position as a company employee, a successful business venture, or investments that are already paying off. While any job comes with uncertainties, the longer you are in a position or, the more years as a business owner you have, the more likely that your job can get nods from loan providers, which gives you more options to back your home ownership goal.
You’re in good credit standing. In line with getting your debt paid off and meticulously watching your credit report as they come, you’ve managed to finally increase your credit score which lets you get a better interest rate from any provider. By being able to meet the requirements for a better interest rate, it means that you can benefit from a lower monthly mortgage payment, which makes the option of becoming a homeowner even more possible.
You have an emergency fund and savings. Circumstances happen – good or bad. Unexpected things can come unannounced with a house or something generally unexpected can come up in life as well, so it makes sense and is crucial to plan for this with extra savings. You don’t want to have to rely solely on your monthly income to pay those unexpected costs since your monthly income might be the only source you use for the mortgage and other bills.
A reserved down payment. If you have already saved up least 10% down payment excluding your savings and emergency fund, then you are ready to buy your own house. Of course, putting even more down like 15 percent or 20 percent is even better since it allows you to avoid pricey PMI (private mortgage insurance) requirement. The more you can set aside for down payment, of course, the lower your monthly payment will be. This sets you up for an even better financial position.
If you can honestly say yes to these signs, then it is high time to move on to the next step and get prequalified. There are numerous affordable home loans available in Australia, so take your pick! You’re on your way of being a homeowner! Best of luck.