Buying a home in Victoria Australia is a major monetary decision and it takes high degree of stress and pressure. However, there are few things you can do to ease the home buying process, and tip the chances in your favour.



Get to Know your market





One of the first and probably the most important thing is to do proper research on the area where you are thinking of buying your house. Dont just browse newspaper ads and Internet property directories. Try to get a real feel of the area and the market. There are plenty of places in Victoria where you can consider building or buying your home. After selecting an area, make sure you walk the place thoroughly and attend a number of property viewing and auctions. You may also want to talk to the agents, brokers and so on. The more informed you are during your home buying decision, the better it will be.



Do your math



Before you begin searching for a property, you should consider how much you can borrow and how much you would be ok with during repaying the home loan. Home loan in Victoria is quite easy to get, but depending on every individuals credit score it may vary. But you should not just think of getting your home loan, you must also remember that you will have to clear off the loan one day. So you will need to do a household budget before applying for the home loan. Depending on your income, credit score and some other factors you may be able to borrow as much as 95% of the propertys value or even more. However dont forget that you will have to come up with a down payment of around AUD 10,000 AUD 20,000 depending on the value of the house. You will also need to consider the interest rate changes over the period of time which will effect your monthly repayments of the home loan.



Be flexible



It is a common fact that the Interest rates of any home loan and also your own circumstances will change over time. So if your home loan is flexible enough that can cover those unforeseen circumstances, you will be smiling all throughout your repayment period.



Some Important things to look for in a home loan for Victoria are:



The option to convert from a variable interest rate loan to fixed interest rate, or divide the home loan into both



The option of principal and interest repayments or interest only payments



An offset account system to help you save on interest costs and own your sweet home sooner



The ability to make more repayments when you have additional income



The option to redraw your extra repayments whenever you need to



The preference of weekly, fortnightly or monthly repayments for your home loan



The opportunity to take your loan with you when you buy another house



Claim your benefits



If youre buying your home in Victoria for the first time you may be eligible for the Federal Governments First Home Owners Grant. Victoria state government also offers various types of grants & discounts to assist first home buyers of Victoria. For instance, you may get some good discount on stamp duty. So its always wise to check out all your options and take advantage of all the benefits that you can have.



Check Home purchase costs



A common mistake made by all first home buyer is, they always underestimate the total cost of purchasing the property. So make sure you check into each of the following items:



Inspection costs of the house



Legal costs



Stamp duty (You might get a discount if its your First Home)



Council and water rates



Set-up costs (e.g. the loan establishment fee)



Lenders Mortgage Insurance - if your Loan to Value Ratio is over 80% or over 60% for a Low Documentation Loan, you may need to pay this.



Arrange Home insurance



As part of the home loan process, you will also need to arrange for a home insurance. You will also have to think of contents insurance when you move in to your new house. If you are buying a home unit you will need to get a Certificate of Currency from the body corporate insurer to make sure that the property is properly covered by the insurance.



All these may seem a lot to consider. But when the keys to your new house are finally handed over to you, it can make the result even more satisfying.