Buying your first home represents a significant milestone, particularly for pharmacy assistants looking to establish financial security. Pre-purchase planning forms the foundation of a successful home buying journey, helping you understand your financial situation and prepare for the application process ahead.
Understanding Your Financial Position
Before exploring home loan options, you need a clear picture of your financial circumstances. As a pharmacy assistant, your income structure may include base wages, penalty rates, and overtime payments. Lenders will assess your borrowing capacity based on your regular income, existing debts, and monthly expenses.
Gather these essential documents early in your planning:
• Recent bank statements (typically three months)
• Payslips showing your employment history
• Tax returns from previous years
• Details of any existing loans or credit commitments
• Records of your savings pattern and deposit funds
Your loan to value ratio (LVR) will significantly impact your loan terms. Most lenders require lenders mortgage insurance (LMI) when your deposit is less than 20% of the property value. However, first time home buyer programs may offer alternatives to reduce this requirement.
Exploring Government Support Options
Australian first home buyers can access various government initiatives designed to make homeownership more achievable. The Home Guarantee Scheme allows eligible buyers to purchase with a deposit as low as 5%, with the government acting as guarantor for the remaining portion.
First home owner grants (FHOG) provide direct financial assistance, though eligibility criteria and amounts vary between states and territories. These grants can significantly reduce your upfront costs when combined with stamp duty concessions available to first-time buyers.
Researching first time home buyer schemes in your state will help you understand what benefits and packages you may qualify for based on your income, the property value, and your circumstances as a pharmacy assistant.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Pharmacist Home Loans today.
Choosing the Right Loan Structure
When you apply for a home loan, you'll need to decide between variable interest rate and fixed interest rate options. Variable rates fluctuate with market conditions, potentially offering interest rate discounts during competitive periods. Fixed rates provide payment certainty for a set period, typically one to five years.
Many borrowers benefit from an offset account, which links your savings to your home loan. Money in the offset account reduces the loan amount on which interest is calculated, potentially saving thousands in interest payments over the loan term.
Consider whether you might pursue investment opportunities later. Some lenders offer packages that include investment loan options, making it easier to expand your property portfolio when you're ready to purchase your first investment property.
Preparing for Pre-Approval
Getting pre-approved provides clarity on your borrowing capacity and demonstrates to sellers that you're a serious buyer. The pre-approval process involves a detailed assessment of your financial situation, employment stability, and ability to service the proposed loan amount.
Pre-approval typically remains valid for three to six months, giving you time to find the right property within your budget. Having pre-approval can also expedite the final application process once you've found your ideal home.
Accessing Lenders Across Australia
Working with professionals who can access home loan options from banks and lenders across Australia ensures you're not limited to major banks. Different lenders offer varying terms, interest rates, and features that may suit your specific circumstances as a pharmacy assistant.
Some lenders specialise in healthcare professionals and may offer preferential terms or streamlined application processes. Others might provide more flexible assessment criteria for penalty rates and shift work common in pharmacy environments.
The property market varies significantly across Australia, and local lenders may have different appetites for lending in specific areas. Access to banks and lenders nationwide ensures you can find suitable financing regardless of where you choose to purchase.
Final Preparation Steps
Once you understand your borrowing capacity and have explored available schemes, create a realistic budget that includes all purchase costs. Beyond the deposit and loan amount, factor in stamp duty, legal fees, building inspections, and moving expenses.
Consider your long-term financial goals when selecting loan features. If you plan to make additional repayments, ensure your chosen loan allows this without penalties. If you're considering investment loan applications in the future, discuss how your first home loan structure might impact these plans.
Thoroughly preparing before you begin actively house hunting will position you for success in the application process and help ensure you secure appropriate financing for your circumstances.
Call one of our team or book an appointment at a time that works for you to discuss your pre-purchase planning and explore the home loan options available for your situation.
