It's always hard trying to buy one’s first home, no matter how astute and savvy one is. There are several areas where a client needs a hand and our staff is fully equipped to take you through this stage of your life.

STEP 1: CAN I BORROW AND HOW MUCH? WHAT IS MY COMFORT ZONE?
Instead of wasting time one should talk to our advisers to take a wise decision on one’s borrowing capacity. It is important to have an indication of the same before starting to even look for the right property. What is more important is your own comfort zone: that we define as your own assessment of your ability to afford. This to us is of utmost concern – as you understand your finances better than anyone else.

STEP 2: RESEARCHING AND FINDING THE RIGHT PROPERTY
You must research the area where you wish to live in. Its proximity to your workplace, schools, colleges, the neighborhood, new developments around the area, parking area, etc.

The property itself should be in a good condition; if not then you would have to consider the cost of renovations and other related costs. Building, property inspection and independent valuation of the property will also give you an insight into the condition and structure of the property.

STEP 3: LOAN APPROVAL
Make sure you have an indicative approval letter from PROVIDA before making an offer for a property. This approval is subject to independent valuation conducted by us and full (unconditional) approval from the funders.

STEP 4: MAKE AN OFFER
Make an offer on the property you like and order for building and pest inspection. Also instruct PROVIDA to conduct an independent valuation to make sure the property is in good condition. A Provida adviser would arrange for the above for you.

STEP 5: ACCEPT THE UNCONDITIONAL OFFER
PROVIDA will issue a full approval and instruct for Mortgage documents to be sent to your solicitor. On the basis of full approval you may wish to “exchange the contract” - securing the property.

STEP 6: YOUR SOLICITOR
Your solicitor must explain to you, your responsibilities as a mortgagor. Your solicitor would also explain to you your various legal implications of accepting the loan offer. Your solicitor would check for the documentation required for the final settlement of the contract such as building Inspection, building Insurances, etc.

STEP 7: PLANNING AHEAD
Now pack your bags and make arrangements for moving into the property.

STEP 8: YOU’VE MADE IT!!!
Your real estate vendor hand over you the keys and PROVIDA will inform you of the final settlement.

GOOD LUCK AND ENJOY YOUR HOME!!!

Considerations for First Home buyers…

How much deposit will I need?
You may require no deposit in some instances and in others 3-5% deposit would be required. Each lender have their own servicing criteria and your mortgage consultant would be able to help you with that.

How do I arrange the first home buyer incentives?
Both the Federal and State Governments offer generous incentives to first home buyers. We at Provida can help you arrange the First Home Owner Grant and stamp duty concessions.

What are all the costs of buying?
Your costs of buying and financing a home include:
• lender's application fees
• possibly mortgage insurance if you are borrowing more than 80% of the property value
• Government duties such as stamp duty
• your own costs such as conveyancing and inspection costs.

Use our costs of buying calculator to give you an indication of your costs.

How much can I borrow?
How much you can borrow depends on how much deposit you have saved and your current income. With our specialist software, your Provida Finance Broker can work this out quickly and easily for you. If you’re keen to get an indication now, use our how much can I borrow? calculator.

How much will my repayments be?
Once you have chosen your loan, your Mortgage Broker will tell you how much your repayments will be. Use our repayments calculator to get started now.

Finding a loan
Generally, basic low interest loans without the costly "extras" are best suited to first home buyers. They keep your interest payments and fees to a minimum.

Your Mortgage Broker can help you choose a loan solution that is right for you, without all the running around. If you’re keen to get started now, read our handy loan guide on the different types of loans available.

Check with your Mortgage Broker whether you qualify for a professional package which can offer great value and discounted rates.

If you’re concerned about what would happen if interest rates were to rise, but want the flexibility to make extra repayments, a part fixed / part variable or split loan can be an ideal solution.

Several lenders now offer flexible, family friendly loans that enable family members to help out with your finance, if things are tight.