BSB 806 015

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BSB 806 015

Buy a home

Step 1: Getting ready to buy

Buying your own home is the great Aussie dream for a reason: you feel in control when you have your own place and it’s the easiest way for most people to build their nest egg.

So how much do you need to get started? Ideally, you want to be able to put down a reasonable deposit of around 20%. P&N Bank does offer to finance up to 95% of the property value (inclusive of Lenders Mortgage Insurance).

Saving for a deposit

Budgeting is not an exciting word, but savings sure look good as they stack up. By getting a clear picture of where you’re spending your money, you can easily see where you can make savings.

For example, by giving up your daily take-away coffee you can save nearly $150 a month (the only upside to Perth coffee prices)!

A budget planner calculator will help you get saving. Your deposit will grow even faster if you keep it in a high interest savings account — we can help you out with those too.

Try the budget planner calculator

How to super-size your borrowing power

  • Prove you have a steady income
  • Show a track record of saving
  • Have a secure job/stable employment history
  • Have a clean credit history
  • Keep debt to a minimum.
Savings Accounts

Step 2: Figuring out what you can afford to buy

What can you afford?

Chances are your first home won’t be the house of your dreams. What it will be is your first step towards getting there.

You’ll find you’re able to relax and enjoy your new place more if you have manageable repayments.

A borrowing power calculator will quickly give you an idea of what you can afford to borrow.

Try the Home Loan Borrowing Power Calculator

Tip: Don’t forget to add in the extras

Make sure you leave about 5% of your budget to cover:

  • Stamp Duty
  • Settlement fees
  • Inspection costs
  • Insurance
  • Moving costs
  • Utility connection
  • Council rates

Do you qualify for the First Home Owner’s Grant?

It’s not all money flowing out. If you are a first home buyer, you may qualify for a government grant to help you build a new home or buy an established home.

Visit finance.wa.gov.au to learn more.

Step 3: Understand all the costs in buying a house

There's more to buying a house then just the price of the property and it pays to use a Home Buying & Selling Calculator to get a good understanding of how much you may need to save to complete the purchase.

The calculator will help you to understand associated costs like stamp duty, legal fees, building inspection fees and much more.

Try the Home Buying & Selling Calculator

Step 4: You've found the one - what's next?

Making your offer and organising your finance

You put in an offer with the real estate agent and negotiations start. If you haven’t already organised finance, you need to do it now. This is where you go and check out a bunch of different bank rates and fees and discover they’re all so much higher than P&N.

Home Loans

Sealing the deal

Eventually, you and the vendor agree on the sale price and settlement terms and sign the contract. You’ll then receive a copy of the ‘Offer and Acceptance’ document. This details the sale conditions including the final price, settlement date and information about the settlement agent who will be taking care of all legal documentation.

Now it’s time to pay the deposit — usually 10% of the purchase price.

The balance of the property price, including stamp duty, is paid on settlement day. This is when you break open the champagne and get the keys to your new house.

Avoid nasty surprises!

It's a good idea to make your offer is subject to a building and pest inspection. You don’t want any nasty expensive surprises once you move in.

Step 5: Organising finance

So in between the excitement of finding the one, you need to sort out how you’re going to finance it. This is where we are really good at helping. We offer a series of straightforward, easy to understand loans.

We’re very flexible and let you add or subtract whatever bells and whistles you want. But the thing we’re most proud of is our rates.

Browse home loans

And because P&N is here to benefit our members, we encourage you to pay off your loan as soon as possible.

If you can, make payments weekly instead of monthly and make lump sum payments whenever you have spare cash. If rates fall, try not to reduce your payments.

The faster you build up equity in this home, the sooner you can start thinking about your next dream house!

Tip: Speed up your application by getting your documentation ready

You’ll need:

  • Proof of identity
  • Proof of income
  • Details of any debt owing
  • Details of savings and life insurance policies
  • Your copy of the offer and acceptance document

Want to know more about how to buy a home?

We’re here to answer all your questions. Chat online now, or drop into your nearest P&N branch.

Contact us

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