The Basics of Home Buying

Buying a home is a major milestone and an exciting journey. To help you navigate the process, we’ve listed these basic steps.

Assess Your Finances

Before you start looking at homes, take a good look at your financial situation. Check your credit score, calculate your savings, and determine how much you can afford to spend on a home.

Get Pre-Approval

Pre-approval gives you a clear idea of how much you can borrow and shows sellers that you're a serious buyer. Contact a Montium Specialist to get pre-approved and find out the best loan options for you.

Start House Hunting

Make a list of your must-haves and nice-to-haves in a home. Visit open houses and schedule viewings to see homes in person. Take notes and pictures to help you remember each property.

Make an Offer

Once you find the perfect home, your agent will help you make a competitive offer. Be prepared to negotiate with the seller on the price and terms.

Get a Home Inspection

A professional home inspection is crucial to identify any potential issues with the property. If the inspection reveals problems, you can negotiate repairs or a price reduction with the seller.

Secure Financing

Once your offer is accepted, work with your Montium Specialist to finalise your mortgage. Provide all necessary documents and complete any required steps to secure your loan.

Close the Deal

The closing process involves signing paperwork and paying closing costs. Your agent and Montium Specialist will guide you through this process. Once everything is signed and the funds are transferred, you’ll receive the keys to your new home!

Move In or Lease Out

Plan your move and transfer utilities before you settle into your new home. You can enjoy the exciting journey of making your new house a home.

If you don’t plan on moving in, speak with your selling agent to get a rental appraisal and list your property on the market.

Frequently asked Questions

  • The principal of your home loan is the money you borrow. The interest is the cost the bank charges you to borrow this money.

  • Where you only pay the interest for a certain period, without paying back any of the borrowed money (the principal). After this period ends, you will start paying both the principal and the interest.

  • A Construction loan is a short-term loan for building a new home. The money is given in stages as the construction progresses, and you only pay interest during this time. Once the construction is complete, the loan can turn into a regular mortgage.

  • A Bridging loan is short-term loan that helps you buy a new property before selling your current one. It covers the gap between buying a new home and getting money from selling your old one.

  • A variable rate home loan is a home loan with an interest rate that can change over time, meaning your repayments can go up or down based on the market interest rates. Variable rate home loans allow greater flexibility where typically extra repayments can be made without incurring a fee from the lender.

  • A fixed rate home loan is a home loan which consists of an interest rate that stays the same for a set period. After that set period has expired, the rate can switch over to a variable interest rate. If you are on a fixed rate and need to discuss what happens next, we can assist you find the best rate in the market.

  • LMI stands for Lenders Mortgage Insurance. It's a type of insurance that protects the lender if you can't repay your home loan. LMI is usually required if your deposit is less than 20% of the property's value.

  • Borrowing power is the amount of money a lender is willing to lend you for a home loan. It depends on your income, expenses, debts, and other financial factors.

  • Loan-to-Value Ratio (LVR) is the ratio of your loan amount to the value of the property you're buying, expressed as a percentage. High LVRs can lead to higher interest rates, the need for Lenders Mortgage Insurance (LMI), and greater financial risk if property values decrease.

Get started on your home buying journey

Call a home lending specialist

Talk with a home lending specialist to discuss your needs.

Schedule an appointment

Meet with a home lending specialist at a convenient time.