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With house prices on the rise, it can seem more and more unlikely that you’ll ever purchase your own home. However, once you look at the facts it may be more achievable than you thought. Here are four common myths that we have busted.

Myth #1: You Need to Put down a 20% Deposit to Get a Mortgage

The biggest struggle for first home buyers is saving up for a deposit. 20% would be great if you can afford it as it means you avoid having to take out Lender’s Mortgage Insurance. However, if you have a good credit history the majority of lenders will accept a deposit of 5%. This may mean you can get on the property ladder sooner. If you are looking at building you can also use the first home buyer’s grant towards your deposit meaning you have more available to put down.

Myth #2: Investment Properties Aren’t for First Home Buyers

Investment properties can be the key to getting into the property market. You may not be financially ready to take the big step of buying a house and moving out. If you have the opportunity to stay at home, an investment property could be the right move for you. The income from the rent can be used to help meet your mortgage repayments. This helps you to get a head start for when you are ready to move out.


Myth #3: The Deposit Is All You Need to Worry About

Whilst the deposit is a significant aspect of the cost when looking at buying your first home, it’s not the only cost you have to think about. If you’re ineligible for the first home buyer’s rate of duty you may have to factor in stamp duty. Pest and building inspections are an extra expense you need to account for. You also need to factor in moving costs such as the hire of a removal truck or company. Fees are also payable to solicitors and conveyancers for their services. There may be loan establishment fees to think about too. Budget well and take into consideration all the costs associated with purchasing a house.

 First Home Buyer Hurdles: We Bust Four Common Myths

Myth #4: A Bad Credit History Can Prevent You from Getting a Home Loan

Lenders now offer mortgages for people with a bad credit history. They will take into consideration all the factors that contributed to your poor credit report. Looking in depth to your credit history means that a lender can tailor a loan to suit your needs. Show you have turned your credit history around and try and save as much as possible and pay your bills on time.

There are a lot of myths out there about purchasing your first home. Arm yourself with the facts and you might just be ready to make that first step to get on the property ladder.

Hicks Real Estate team is available to call today on: 07 3355 6845.

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Hicks Real Estate is a Brisbane based, full-service real estate agency supporting buyers and sell as well as renters and property investors. With almost 20 years experience in the local market, we are the real estate experts you can rely upon.