Your First Home Loan in Australia - What You Should Know

Getting a home loan in Australia is, at the same time, the most exciting and the most terrifying experience you may have had up until that point in your life. For the lions share of people, purchasing a home is the single largest expense they will ever undertake. On the flip side of the coin, owning a home can be one of the most rewarding things most people ever do. There’s just something about the feeling that what you have belongs to you that’s irreplaceable.

But like I said - it’s a bit scary for the first timer (or even the second or third timer). To help you along your way, here are a few tips on what to expect.

First, don’t be surprised if the process moves fast. For a big decision like which home to buy, people often believe that the more time they spend making the decision on a home, the better their decision will be. In most cases, this is not true. Think about it - if that rule were true, the people who never buy a home would be making the best decision.

The truth is that much of the mental and emotional work of buying a home has happened before most people start calling about home loans. You’ve already decided you want to buy one, and you’ve probably already been looking at different homes online. It’s hard not to. Once you start thinking about the life you could be moving into, it’s very easy to start picturing yourself in specific surroundings and seeing if a home that fits exists.

Overall, motivated buyers will probably find a home they like within a couple weeks. Working with a conscientious agent who takes the time to learn what you’re looking for will help the process move along considerably. If they’re showing you a carefully chosen list of homes that meet your desires, much of the legwork is done for you, and the process moves along quickly.

Similarly, don’t expect to look at 30 homes. You can if you want to, but you’re going to get to a point of diminishing returns. Many realtors show a given buyer no more than 10 homes, maximum. If you’ve seen 5 or 6 and none of them are what you’re looking for, you may want to look for a new realtor. Or you may want to have a look at your own expectations. Are your standards for a new home clear and reasonable? Are you looking at more homes in an effort to delay the final decision on which one to buy? Both reasons are common, and both are ok. Just remember that without a reasonable set of expectations and a willingness to make a tough decision, you’re likely to waste your time and money.

If you want to make sure you’re choosing the right home for yourself, take a little extra time to prepare, and become a note taking machine. Sit down and make a list of your must haves, your nice to haves, and your can’t haves. If you’re buying the home with someone else, make sure to work together to make the list.

As your seeing homes, bring along a camera and your list. Take photos of important things, like that spacious kitchen you’ve always wanted, or the beat up looking house next door. Go down your list as you’re looking through and check off everything each house meets. Then you’ve got an easy way to jog your memory and compare offers.

Don’t forget to listen to your gut, as well. Numbers and statistics are useful, but there are certain intangibles that your gut will tell you about. Even if something looks good on paper, you may get an uncomfortable feeling for the place. If you don’t think that will go away, it might be best to move on to another place.