Borrowing to buy your very own home can be an exciting venture, but also a scary one if you don’t plan well.
Not everyone will do it, but most people will consider it at some stage in their lives – borrowing to buy their very own home. It can be an exciting venture, but also a scary one if you don’t plan well.
Whether you are borrowing to buy your first home, or upgrade your existing property, it is imperative you take the necessary steps to ensure you do not borrow more than you can comfortably repay. You might think that’s blatantly obvious, but this can be an extremely emotional time and under such stress, sometimes common sense disappears.
You should be aware of your exact financial position, how much you can afford in repayments and have emergency plans to cater for contingencies such as increasing interest rates or changes in income.
A great idea is to keep income and expense records for a period before you take out a new mortgage to track your cash flow movements. You might even have a trial run for a few months to prove that you really can set aside the full amount of your planned repayments without too much pain.
Then, when it’s time to establish the loan, keep in mind the following…
Once you have enjoyed the excitement of moving into your new home you may need to forgo new luxury items until you have significantly reduced the level of your mortgage. A golden rule is to never take on further debt, such as adding non essential items to your credit card, early in your mortgage. If you plan an expensive holiday or a new car, it is best to save for these as a special project.
We can guide you through the mortgage maze and help you determine how much you can safely borrow, and the best mortgage and features to suit your circumstances.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
Shanley Financial Planning Pty Ltd trading as Steve May Financial Services (ABN 19 612 825 180) is a Corporate Authorised Representative of (1265706) of Sensibly Pty Ltd (AFSL 533923)
Nick Shanley, Steve May and Luke Styles are Authorised Representatives of Sensibly Pty Ltd (AFSL 533923)