As one of Australia’s leading asset finance brokers and highly respected comparison services, Savvy has provided Sunshine Coast News readers with an exclusive home buying advice guide.
Are you an empty nester? Are you sick and tired of cleaning rooms and spaces that no one’s lived in for years? Or maybe you’re feeling cramped and need something more spacious?
The Sunshine Coast is great for people looking to downsize or upsize what they’re in currently.
Though home loan lenders are tightening the screws when it comes to approvals, here are some tips if you’re making a move to the Sunny Coast.
The below guide looks at tips for upsizing, downsizing or getting into the market on the Sunshine Coast.
How to finance your new home
if you’re thinking about downsizing or relocating in a pricier market, you’ll likely have to consider home loan options.
Selling your previous house or using the equity in it might not be enough to cover the new property.
If you own an asset with high or total equity, you can use it as security for a new mortgage and even open up your previous property as an investment, if that’s something you and your financial adviser says would be beneficial.
You could still be eligible for some house loans even if you don’t have a lot of equity or property and are receiving an old-age pension for example – it’s possible to gain approval, but you will have to lower your sights depending on what you’re approved for.
If you’re moving from a bigger house to a smaller one, you can use the money from the sale to buy the smaller house outright. You may even have some money left over!
Is tapping into super an option?
Another strategy to fund your new home if there’s a gap is to use your superannuation.
If you decide to pay for your new home with a loan, you could use the money you get from your super to make your monthly payments – or unlock a lump sum to pay for a deposit or the entire home outright.
If you’re below the superannuation release age and have never owned a home before, you could be eligible for the First Homeowner’s Grant, which can help with some costs.
Downsizing and other costs
Costs associated with downsizing (or upsizing) extend far beyond just the property itself.
With the purchase or disposal of any major asset, there’s going to be other costs that ensure compliance and due diligence.
You’ll have to account for transfer and stamp duty, land tax, conveyancing, legal fees, inspections, and your deposit.
If you don’t have at least a 20 per cent deposit, you’ll also have to pay for lender’s mortgage insurance.
You’ll also have to pay for home loan application fees, settlement fees, and a valuation fee. You also have to remember moving expenses, registration fees, and insurance.
The Public Trustee offer these services too – and may be cheaper than going private.
See a broker
As interest rates are climbing and likely will through 2023, you should see a broker to find home loans from a variety of lenders instead of sticking to your bank.
You may get more competitive rates or products by consulting a broker instead of just one bank or lender.
You should also get advice from a financial adviser before committing to any loan product.
Article source: www.sunshinecoastnews.com.au
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