If you’ve for any further questions, EDA Property are specialist property investment advisors in Melbourne. We can provide further advice on saving for and buying your first home keeping both your interests and your long-term goals in mind. Feel free to get in touch with us for a no-obligation consultation today.

FAQs - EDA Property

Q: Should I use a mortgage broker?

If you find a good one, yes. Rather than going straight to a bank, mortgage brokers do all the hard work and find you the best lender to suit your personal circumstances. They'll develop an understanding of your needs and your long-term objectives. Just because a bank offers the cheapest interest rate, it doesn’t automatically mean they are the best option for you. Brokers generally don't charge you fees (although some do). Make sure you find one who has a good track record and who doesn’t charge you brokerage fees.

Q: Can I get a loan when I’ve just started a new job?

This will differ depending on the lender. Some of the banks may require that you've been employed for at least a year, but some only three months. Others will not agree to loan to you if you’re on a probationary period. We recommend speaking to a mortgage broker to get a better understanding of your situation and who can provide you a the best possible home loan.

Q: What are the extra costs other than my deposit?

Other than your 10 per cent deposit, there are a range of other costs you’ll need to have in mind when taking out a home loan. These extra costs will include: Stamp duty (otherwise known as land transfer duty); Legal fees (when preparing the contract for the sale of land); Moving expenses (to help move all the furniture you plan to have in your new property); Building and pest inspection/extermination (to get out all the roaches and rats before you move in); Mortgage insurance; Council rates; and More. Purchasing property, as you’ll soon realise, isn’t cheap. That’s why having a robust savings strategy is so important prior to buying your first house or an apartment.

Q: How much does it cost to take out a home loan?

The cost is different for each lender. Some lenders will decide not to charge you an application fee, and others will.

Q: What is stamp duty and when do I pay it?

Stamp duty – also called land transfer duty – is a tax applied by state governments when you buy and sell property. It needs to be paid upfront and must be taken into account when purchasing property. The amount of duty you have to pay is different in each Australian state. You can find more information about the Victorian land transfer duty on the State Revenue Office website . Factors that are typically taken into account include: whether your property is a primary residence; whether you're a first home buyer; and whether you're buying a new home or an established one.

Q: How large should my deposit be?

Generally, you’ll need to put down a 10 per cent deposit when taking out a home loan. Speak with the seller or the real estate agent to find out what type of payments is required (which may be a cheque).

Q: How do I find the right home – should I buy a house or an apartment?

The answer to this question comes down to your own goals. There are advantages and disadvantages that come with buying one or the other. It will depend on what lifestyle you prefer, whether you are looking for capital growth, affordability, ongoing costs and more.