It’s about this stage in the journey of buying a home that you probably begin to feel a little like an accountant, sifting through last year’s tax receipts. Let’s not joke around – managing your paperwork is a job, but following these tips should save you some sanity, and maybe some money.
Preparation & the approval process
The list of tasks and requirements you need to understand and remember to secure your loan is not short. Keep track of where you’re at and know what documents and ID you need with this Suncorp Bank approval checklist.
How big a mortgage can you afford?
Suncorp Mobile Lender, Dane Gaspar, talks about affordability and accurately calculating their expenses.
What you can afford isn't just about what a bank says you can afford, it's also about your lifestyle.
I encourage customers to be as accurate as they can be when they're calculating their expenses, so that when they have the loan they won't be eating two minute noodles every night.
When calculating affordability, one of the methods Suncorp Bank uses is what we call a sensitised interest rate, which is an average interest rate over 30 years. This aims to help later down the track if the interest rate changes, so you still have a financial buffer.
You should think about future income, what happens if you decide to have kids and if you are relying on two incomes, what happens if you need to drop from two incomes to one.
Also, the things that make your life meaningful – Christmas time, birthdays, holidays. Customers need to think about what they might be giving up to have a home loan.
It's tempting to ignore unexpected expenses. But having money saved up as a buffer for things that may need fixing when you do have a new home – like air conditioning, heating, and plumbing is a good idea.
Ultimately it's up to you to work out what you can afford, but we can help guide your thinking.
Book an appointment with a Suncorp Bank mobile banker online.
The amount of forms and filing involved with purchasing property can be intimidating, especially if it’s your first time. But it’s vital to know what’s required, as a seemingly minor oversight can cause major headaches.
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Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Disclosure Statement before making any decision regarding the product. Contact us for a copy.