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Check if you're ready for a home of your own

Buying a home is an exciting adventure, but it's important you're prepared for this significant step. Here are some indicators that could signal you're ready to make a move into home ownership.

You feel financially confident

Buying a home is the biggest purchase most of us will ever make. Taking time to review your finances, and your financial behaviour is a crucial first step in preparing for home ownership. 

How are your savings looking? 

Take a look at your savings. Do you have some money set aside for a deposit plus some extra funds for extra expenses? As a rough estimate, you may need around $5,000 to cover other home ownership costs like loan establishment fees, settlement agent fees, shire and water rates.

You may feel more comfortable getting a home loan if you have some additional funds saved for any immediate home improvements too, like a house alarm or new curtains for example.

Consider your estimated home loan repayments. Are you comfortable managing those within your current budget?  Are there expenses you would cut down on if you had your own home?

Having a clear idea about your finances, including savings and a budget, is a good sign that you might be financially prepared for home ownership.

You have a regular income and have been in your job for a while

For you to feel comfortable with a home loan, you'll need to have a regular and stable source of income. We'll look at your income, and your debts and expenses, to ensure you can comfortably afford a home loan.

We require that you have been with your current employer for at least six months as that shows us that you have stable employment.

Emergency funds ready if you need them

Apart from saving for your deposit and moving expenses, having some extra money set aside for unexpected costs or emergencies is a wise move. Many of our customers tell us how having some funds in a separate account for the unexpected gives them peace of mind.

Our partners at the Financial Wellbeing Collective coaching service suggest having at least $2,000 in an emergency fund for costs like car repairs or urgent home maintenance costs like a plumbing or electrical issue.

You've been talking this through

You've had conversations with your partner

If you're thinking of buying a home with a partner, you'll need to have some discussions about what you are both expecting for your first home. You may find that you've may made assumptions that might not be correct.

If you want to buy a home together, remember the seriousness of this commitment. You will each be separately and jointly responsible for the loan. It's a big step in a relationship.

You'll need to be very open about your debts and spending. This might need a few honest conversations.

Ok with asking for help and advice

Remember, there's no rush when it comes to buying a home. Take your time to prepare and gather information. When you feel confident, excited, and ready to take on the responsibilities of owning a home, that's when you'll know it's the right time. You might find it helpful to talk to friends and family who have gone through the process. Their help and advice can continue once you move in too - someone might know how to fix a dripping tap or have tips on great vintage furniture shops.

If you have more questions or want to explore further, don't hesitate to reach out to our team. We're here to help make your journey to home ownership a smooth and enjoyable one.

You're thinking long term

Are you ready to settle down in one place for a while? Buying a home is ideal if you plan to stay in the same area for several years. It might be a good idea to spend time researching locations and then checking in with a real estate website to see what areas are affordable for you, balanced with where you want to live.

You get a chance to stay in a community you love and make it your own.

You're excited about being responsible!

Owning a home means taking care of it. From keeping up with your home insurance, and paying bills to handling repairs, being prepared for these responsibilities will be key to your success as a home owner.

If you're excited about the idea of maintaining and caring for a home, it might be a sign you're ready for home ownership. Start planning that garden bed.

You're doing your research

Like any big decision in life, buying a home suddenly increases your learning curve. You'll likely be doing a lot of research and spending a lot of time thinking.

Consider these topics to help you feel confident that you have weighed up all your options:

  • look into different housing options including build vs buy, home vs apartment
  • list of absolute deal breakers and what you can compromise on
  • consider a range of neighborhoods, and
  • evaluate differences in home loan products.

You can find a lot of information online - and we're here to help if you have any questions.