You know that thing that’s stopping you from owning your own home?…
What if we told you it doesn’t need to be a thing?
If you’re wanting to buy a home of your own but don’t know where to start, you’ve come to the right place. There’s so much information (and misinformation) out there and quite frankly, it can all be a bit overwhelming.
We know the Karen’s of the world are out there telling you that Gen Z’s will never be able to afford your own home, you don’t know how to save etc. etc. 🙄 Well, we’re here to tell you (and Karen) that it’s completely possible, and while it might seem a little daunting, we’re here to help make it happen.
It doesn’t matter if you’re a first home buyer or if you’ve always rented and decided it’s time… we want to help make the dream a reality. But first, let’s clear a few things up:
MYTH: You can’t afford a home if you’re single 🤥
Um, not even nearly true. Don’t let those couple selfies in front of a sold sign put you off, you don’t need to be paired up and it’s completely possible (and baller) to do it by yourself, for yourself. Here’s what you need to know:
- Work out what you can realistically afford and how much you can borrow.
- Get your finances in order as lenders will look at your financials in detail.
- Get familiar with government perks
The First Home Owners Grant will give you a nice little boost with a one-off $10K payment 💰 and there’s also the First Home Super Saver Scheme which allows you to save for your home inside your super and comes with all kinds of financial perks. Do your research and see what’s out there and what’s going to work best for you and your situation.
MYTH: Debt is a deal-breaker 🤥
Who hasn’t got a bit of debt these days, amirite? Whether it’s HECS debt, credit cards, car loan or one too many Afterpay’s 💸 it’s life and isn’t going to stop you from getting a home of your own.
Consolidating your debts is a great way to reduce your monthly repayments while improving your debt-to-income ratio. And remember earlier when we said we’re here to help make it happen? Easystart can also ease your money issues with Deposit Assist and can cover your debts (up to a certain amount) to help you take control of your finances and more importantly, qualify for a home loan. #adulting
MYTH: You’ll have to pay mortgage insurance 🤥
If the banks are going to lend you a heap of money, they’re going to want to cover themselves if you default on your loan repayments. This is where Lenders Mortgage Insurance (LMI) comes into play, and although it’s only a one-off payment, it’s usually a pretty hefty one at that. But guess what? You don’t always have to pay it.
LMI only applies if you borrow more than 80% of your home’s value. So if you want to avoid it, you can either save for a larger deposit, include a guarantor (a family member using their own property as security), apply for a Keystart loan which is LMI free, or you can find a bank where LMI is more affordable as the charges vary from bank to bank.
And we’ve saved the biggest myth until last…
MYTH: You’re going to need a HUGE deposit 🤥
Not true. This is a common misconception, and probably the one that holds people back the most. Most lenders want a deposit of at least 5-20% of the home loan amount – eye-watering stuff, but we’re here to tell you that it’s not always the case.
If you’ve been renting for over 12 months, you’ll have options because some lenders will take you paying rent as proof that you can service a loan and will consider it as savings for a deposit.
There’s also the Keystart loan that we mentioned earlier. It’s a WA Government initiative where people with smaller amounts only require a 2% deposit. And if you’re a first home buyer, you can use the $10K First Home Owners Grant towards your deposit too.
So, there you have it – the most common home buyer myths debunked. Want to know if you’re eligible? Fill out the form below and we can help you out.