Being a first home buyer in Sydney is undoubtedly exciting, but it can also be a little daunting, particularly when it comes to getting a home loan. After all, getting a mortgage is a big financial commitment.

If you are feeling overwhelmed by the home loan process, don’t worry as you needn’t go through it alone. That’s because, as an expert mortgage broker, Loan Station is here to help Sydney’s first home buyers every step of the way.

Before you can start looking for your dream home, you need to figure out a budget. Your budget will largely depend on how much a lender will let you borrow. This is known as your borrowing power or borrowing capacity.

Each lender will calculate your borrowing capacity slightly differently. However, it’s usually based on your:
● Income and assets
● Debts
● Living expenses
● Deposit size
● Credit history

Wondering how much you can borrow? Use our calculator to get an estimate of your borrowing power.

Lenders generally want you to have some skin in the game, which means you need to save a deposit.
But how much do you really need?

With some of the highest property prices in the country, first home buyers in Sydney face big challenges entering the market. Fortunately, there is government support available to give you a leg up the property ladder.

At the state level, this support includes:Read More

The two most popular ways you can buy a home in NSW are through a private treaty sale or at an auction.

A private treaty sale is when you privately negotiate the purchase with the vendor (or, more commonly, their real estate agent). Once you agree on a price, you exchange contracts. You then have a cooling-off period of five business days in which you can change your mind without financial or legal penalty.

By contrast, when you buy a property at auction, the cooling-off period doesn’t apply. If you’re the winning bidder, this means you must pay the deposit and exchange contracts immediately after the auction ends. So it’s strongly recommended you have a home loan pre-approval in place and have completed all your due diligence on the property before the auction begins.

Pre-approval is when a lender agrees, in principle, to lend you an amount of money to buy a home (subject to certain conditions). While pre-approval isn’t an iron-clad guarantee you’ll receive the funds, it gives you a good idea of how much you are eligible to borrow and at what interest rate.

Pre-approval also shows sellers you’re serious, which can give you the edge in a competitive market.

Before buying a home, it’s a good idea to make sure the property is structurally sound and free from pests. That’s why, as part of your due diligence, it’s generally recommended to invest in a pre-purchase building and pest inspection.

During these inspections, a qualified professional will examine all accessible areas of the property to check for:

● Structural defects, such as cracked walls, rising damp or signs of movement
● Damage from termites, insects, bugs, fungi and mould