The 2 Most Common Hurdles For First Home Buyers To Get Into The Market – and how to overcome them…

There’s so much talk in the media about First Home Buyers and how hard it is to get into the Property Market.

From the clients I talk to I see two common issues around First Home Buyers getting into the market (and I’ll give you a hint…. it’s not smashed avocado)

So what are the two most common issues I see?

Issue one – The Deposit

Firstly there is the deposit amount. Getting enough deposit can be a struggle, especially when, like most other First Home Buyers they are already in the ‘Rent Cycle’

It can be near impossible to save a deposit whilst paying rent and the result I see is a lot of First Home Buyers give up altogether.

Solution one – The Deposit

It is so much easier said than done but, the best solution I can give is to work out your Budget and Savings plan and stick to it.

It’s really similar to wanting to loose weight. I know I’ve been guilty of wanting to loose weight and get healthy, I’ve even been talking about how hard it is (while eating chocolate cake) but the reality is, unless you have a clear goal and a means to get there, chances are you will fail or give up.

Issue Two – Getting help

I know so many First Home Buyers who start their First Home Buying journey by going into their bank, the bank they have been with since grade 5, and applying for a home loan.

The reality is, in most cases, these First Home Buyers leave with a ‘pre-approval’ to buy however this approval is not fully assessed, it’s computer generated, so when the First Home Buyer comes back with a Contract of Sale on their dream home they can find it comes back declined because it does not fit with their lending policy.

I have even had clients in the past say ‘I don’t understand, I have banked with them for over 20 years, they know everything about me and yet they wont give me a loan’? but the reality is, if it’s not in their policy, chances are they can’t do it.

Solution two – The Mortgage Broker

Unlike your Bank, a Mortgage Broker has access to over 30 different banks and lenders. This means they can get to know more about you and your unique situation to give you a selection of lenders that do have a policy that fits with you.

So regardless if you’ve been self-employed for 3 months, you’re casually employed or you only have a 5% deposit, as a Mortgage Broker we have a lender that can help.

Get Buyer Ready in 2020

The best advice I can give is to sign up for The First Home Buyers Program so you can get buyer ready!

The program will cover off on;

How much deposit you need to buy your First Home

Setting a Deposit Goal

How to Budget for success

Setting out your personalised Budget

How to Track your budget and reach your Goal

The steps to buying a home and what you need to know

Getting Financially Fit, everything you need to know to get your new loan paid off.

To get more information click here.