Considering buying, but have no clue where to start.

[nothing2lose]

That sounds great Tash! go for it!!

Don't forget the extras though.

I really hope your dreams become reality soon

[Marley&Me]

Thanks N2L, the extras included were all the bank fees and all the government fees. We will just keep saving and saving and having no life in the process

[nothing2lose]

I hear you sister! My money goes straight to ivf

[Marley&Me]

Oh N2L It's so crap that IVF is so expensive. I would have definitely started it if it wasn't. But I shouldn't speak too soon, I may still need it.....

[myturn]

It will be worth all the effort in the end. Hopefully you will get the house and the baby xxx

you might have to sacrifice location, and get something smaller than you'd like (we're in a 3 BdR unit in Hampton Park - would sell for about 330 - 350K now...) - but in the end, having your own home is a nice feeling .

good luck!! xxx

[Indadhanu]

I don't have much to add, but you can also check out the 'On the house' website for sale prices of similar houses in areas you are looking.

[Marley&Me]

Thanks myturn, our suburb is growing, but it is still cheap because there are still old parts. We will only buy something older anyway because we need a big backyard!!

Indadhanu, I will check it out

[RhiChiChi]

Would your DH consider having the house in your name only but the loan in joint names - that way you might be able to qualify for the first home owners grant?? Just a thought

[Marley&Me]

Sounds like a great idea, but I don't think it works like that from what I've heard you can't get a house loan in two names and then buy the house in one name.

Unless anyone else can shed some light on this?

[fionas]

I don't think you can or we would have done that (this is DP's first house in Australia).

[Rivlas]

You will find a broker is worth talking to as they don't work for a bank but work for the customer.
Also you may be surprised how much you will need for a deposit compaired to what a bank says.

I agree with what the others have said about looking. Also have a yes and no list of what you want in a house.

[Marley&Me]

I don't think you can or we would have done that (this is DP's first house in Australia).

Yeah, I don't think you can




So who can I go to for the loan for a house? Obviously the bank, but who else? Is that like Aussie home loans etc.? And what exactly does a broker do?
The bank were pretty reasonable, but I'd love to know all my options......

[Rivlas]

If you go through a broker he deals with all lenders and finds the one that will suit you.

Another thing to be careful about is don't apply to to many banks as they keep a record of applications.

[Marley&Me]

Thanks Rivlas, it's the same for personal loans and credit cards too with the credit thing.
So a broker you pay and he deals with banks/financial institutions for you?

[fionas]

You don't generally pay the broker - he gets a commission from the bank. Some are independent of banks, some are associated (I think). They should have to declare that in their paperwork.

Brokers are useful as they can explain all the jargon. There's so many different types of loans available and it's confusing. In your situation, you might want to have a look at a loan that lets you make extra repayments and gives you a redraw facility. So while you're on two incomes, you could pump extra money into your mortgage and if you go down to one income, you could withdraw the extra repayments and use that cash to keep up with your normal repayments until you go back to work.

I'm not sure what the banks' policies are now but a few years ago (pre-GFC), they would lend you stupid amounts of money. They offered to lend DP and I, five times our income. That was crazy - we would not have been able to make the repayments despite what they said. The old rule of thumb (which I still use) is to only borrow up to three times your gross income eg. say your joint income is $100K, then don't borrow more than $300K.

So, take what dollar figure they give you with a pinch of salt. You'll have a good idea of what repayments you can comfortably make once you actually start saving for your deposit.