Do you know how to start talking
about your property plans?
The Genworth Streets Ahead Homebuyer
Confidence report from March 2016 showed a drop in how people felt about
getting into the market, for the first time in nearly a year. In particular,
first home buyer confidence took a dive. And that's quite understandable - just
look at the property prices in your nearest city.
But for Suzy McDonald at Yellow Brick
Road Milton, talking about these barriers is halfway to overcoming them. She
takes a holistic and finely tuned approach to home loans, which has helped many a first home
buyer get onto the ladder. It all starts with that first conversation. But what
can you expect in it?
Who you are
Your decision to buy a property
begins with you - and one of the first things Suzy wants to understand is who
Taking your family into account is one of the most important
steps for working out a home loan strategy.
"We sit down and talk about
people's family situation - are they married, do they have kids, are their parents
involved in the process, what do they love about their ideal home - we cover
who they are and what they love," she says.
"Different lenders will look at
different things. Family payments can be included with some lenders, we might
need to look at maternity leave strategies, and who will be servicing most of
By taking on board the full spectrum
of your situation, Suzy's holistic approach quickly establishes exactly what
The basic terminology
"A lot of the time, when first
home buyers come in to see me, they don't even know where to start," Suzy
says. "So we start right at the beginning."
For many people, this includes going
over the basic terminology of buying property. What are variable interest rate
is, versus what a fixed interest rate is. How an offset account works. What on
earth lenders mortgage insurance is.
There is a wealth of terminology
associated with real estate that can be a huge barrier between first home
buyers and their dream. Suzy breaks this down into simple terms for anyone who
Inside information on lenders
Nobody likes dealing with banks.
Fortunately, Suzy works on your behalf to prepare and present the best possible
application for a home loan that you can put together.
"We look at what lenders always
ask for, the documentation that people will have to provide - and sometimes a
bit extra," she says. "We'll go over what lenders consider to be
income, whether any bonuses or penalty rates factor into your mortgage
This goes beyond the lender - Suzy
can run first home buyers through the conveyancing process, and even conduct
comparative market analysis to make sure you are looking in the right areas for
your dream home.
What your borrowing power is going to be
important thing for any home loan is its serviceability."
"The most important thing for
any home loan is its serviceability," Suzy says. "That is, what your
capacity is to meet the repayments."
"This includes things like the
assessment rate, which is often a 0.25 per cent addition to interest, to ensure
your loan's serviceability remains if the interest rate increases in the
To work out your borrowing and servicing
power, Suzy can lead
you through a discussion of what you currently pay in rent or mortgage
repayments, and what your maximum capacity might be. It's essentially a measure
of what kind of home loan you might be able to secure.
And that's all just in the first conversation. You can cover
as much or as little as you want, all in one free consultation. Suzy
understands that most people struggle with a lot of concepts surrounding home
loans - which is why she want to make sure no one has to ever again, with holistic financial advice.