Handy home-buying tips 

Deposit and upfront costs 

A deposit is the upfront amount of money you’ll need to pay to buy your new affordable home. The amount of the deposit can often be a percentage of the full price of the home, and it can also vary between lenders. You’ll also need money to pay for other up-front homebuying costs such as stamp duty and other fees and charges. 

On-going costs of home ownership 

When you’re budgeting and saving to buy your new affordable home, don’t forget the on-going costs of owning a home, such as insurance, water bills, council rates, the Emergency Services Levy, strata fees (when you buy a strata or community-titled property), and repairs and maintenance. 

What can you afford to borrow? 

This depends on your income, debts, your savings (especially money you’ve put away for your deposit and to buy your affordable home), and your credit rating. Keep an eye on interest rates – this can impact how much you can afford to borrow.  

Home loans 

A ‘principal and interest’ home loan is the most common. You make regular payments on the amount you’ve borrowed and the interest. These loans are typically over a longer term, perhaps 25-30 years. With ‘interest-only’ loans, your repayments only cover the interest, not the principal. A fixed interest rate home loan is locked in for around 3 years, which can give you some certainty about your repayments over a fixed time. However, you won’t benefit if interest rates go down. A variable rate home loan will be subject to market conditions (e.g., rising and falling interest rates) so your repayments may go up and down. Some banks and financial institutions will allow you to split your loan between fixed and variable. 

Mortgage brokers and consultants 

For some home buyers, talking to a mortgage broker or consultant about your home loan might take some of the stress out of the process. These professionals can advise you on a wide range of mortgage products and can even take care of the paperwork for you. 

Finance pre-approval 

Consider getting finance pre-approval from a lender so you’re ready to register your interest in buying an affordable home through HomeSeeker SA. Pre-approval lasts from 3 to 6 months and shows you’re eligible to pay for a loan up to a certain amount. 

Finding a suitable home to buy 

Ask yourself some important questions: What do you want to buy? What can you afford to spend? Do you want to grow your family? What are your ‘must haves’ (i.e., the things you can’t do without)? What are your ‘nice to haves’ (the thinks you would like to have but can do without)? 

Inspecting the property 

Attend open inspections and have a close look at the interior and exterior of the new affordable home that you’re interested in buying.

Contract of sale & finalising your purchase 

Signing a contract of sale formalises your purchase of an affordable home. Once you’ve signed the contract and paid a deposit, you’re obligated to go ahead with buying your affordable home. However, there will be a short ‘cooling off period’ when you can change your mind without signification legal or financial implications. The cooling-off period in SA is two clear business days once the contract is signed. 

Finalising your home loan 

When you’re ready, you’ll need to inform your lender (bank, financial institution, government) that you’re ready to buy your affordable home so that your mortgage can be finalised. 

Settlement 

The settlement date is when the property title of your new affordable home is transferred into your name, and your mortgage (repayments) begins. You can use a lawyer or conveyancer to help you through the settlement process. Once done, you’ll receive the keys to your new affordable home.