1/ Getting the deposit funds together

A/ 5% saved over at least 3 months ($500,000 X 5%= $25,000 needed)+ costs

B/ 20% For a non-Mortgage insurance purchase ($500,000 X 20%= $100,000 needed) + costs

C/ Parents property used as joint security, Just costs needed ie Stamp duty etc.

2/ Affordability

You will need more certainty regarding how much you can borrow and the amount of deposit required. Home Loan calculators are available to give you an indication of your borrowing capacity i.e. how much a bank will lend you.

However ,be aware this will not take everything into account eg ongoing expenses.

Discover how much you can borrow from Foxx Financial, we will take into consideration your personal situation and likely expenses to give you an accurate assessment of your borrowing capacity and calculate the total cost

3/ Lender search

We have a panel of 30+ banks and lenders from around Australia ( including some weird & wonderful’ s for people just out of Bankruptcy etc)

4/ Property search

Spend as much time on the internet as possible ( realestate.com.au or Domain.com.au etc.) studying properties for sale in the area you are considering,

When locating a property look for distance from shops, school, transport etc, if you have children consider passing traffic volumes a court location may be best!

Line up your property buying team at this stage eg. a solicitor and building and pest inspectors so they are ready to act when the time comes and update us of any changes to your personal situation

To purchase at auction you will need to have an approval in principle and arrange a valuation of the property.

Prior to auction you will need to complete all inspections, be prepared to sign and exchange contracts, and hand over the deposit immediately. Don’t forget your cheque book, deposit bond or bank cheque!

5/ Property Found

A/ Pay holding deposit

You will usually pay a holding deposit of 0.25% to the vendor via the agent to secure a cooling off period ( it can be less by negotiation)

We very strongly recommend that you make any offer subject to Finance approval for at least 14 days.

A holding deposit paid to the agent is a show of good faith. It does not guarantee that you have secured the property which may still be sold to another party with a higher offer

B/ Cooling off period

Usually 5 days where the buyer can stop proceeding with the purchase

C/. Carry out building, pest and strata inspections

A building inspector reports on the soundness of the property and the pest inspector reports on possible infestations.

Knowing about problems upfront helps to decide whether or not to go ahead or may be useful to negotiate down the price if there are substantial repairs required

D/ Engage legal professional

A solicitor or conveyancer depending on which state the purchase is in must be engaged for upcoming legal work.

We recommend Louise Luke of By the bay legal & Conveyancing

E/ Notify us of intention to buy

forward to us a copy of the signed contract & section 32

6/ To Obtain Finance approval

You will be asked to supply or resubmit a range of documents that were provided for an

approval in principle, to obtain formal approval at the start of the14 day finance clause

During this time the lender will:

• Carry out a valuation of the property to ensure the security held in the property

corresponds with the loan amount and deposit paid.

• Process the application including a final credit assessment, mortgage insurance or

a First Home Owners Grant if applicable

If you are a first home buyer and eligible for the First Home Owners Grant, now is the time to complete the First Home Owners

Grant application form with your lender and submit the supporting documentation

Your solicitor / Conveyancer checks the mortgage contract between the customer and bank

7/ Loan Approval

After paying a 5-10% deposit ( please forward us a copy of the receipt), provide your lender with a signed contract of sale Not withstanding any problems, the loan is approved and loan documents are issued for you

to sign

8/ Finance approval

You will need to pay the remainder of the deposit,

N.B. Once you pay a deposit the agreement is legally binding on both sides.

ie the property cannot be sold to another buyer

If building is not strata title, building insurance must be obtained. (It will need to note that the lender / bank has an interest in the property) and forwarded to the bank.

Whilst waiting for settlement continue saving and avoid taking on any new debts

Liaise with your conveyancer as to how much money you will need to put in at settlement

9/ Settlement

You will need to carry out a pre-settlement inspection a couple of days prior to settlement

If everything is satisfactory then pay any outstanding funds to the conveyancer who will carry out the settlement with the lender, once this has happened you will be able to collect the keys to your new home from the real estate agent,

And move into your new home ☺

We will contact you after about 14 days to ensure that your accounts are operating properly.

We may also contact you from time to time if we can find you a better or cheaper product.

Please note all products and terms are variable and can change according to market forces.