Making it easy for you to buy your own home.

So, you think buying your own home is impossible? Been told you can’t do it because of this or that? Completely intimidated just by the thought of buying and where to start? We hear you, adulting can be tough. 

Sure, it may seem like it, but buying your own home doesn’t have to be just a dream. We’ve partnered with Easystart Homes to bust 4 big myths about buying a house, and hopefully, turn that far-off dream into a reality with their easy approach. 

Whether you’re a first home buyer or a long-time renter looking to make a home your own, there is plenty of help and options available – we promise, it’s not as hard as it seems.

So, let’s bust the big myths about buying your own home: 

1. You Need A Huge Deposit

Number one on our list, and the reason most people put off looking to buy – is that ‘massive’ chunk of change you need for a home deposit.

The thought of saving five-figure deposits might make your head spin, and we can bet you’ve already been told more than once that you need a huge sum to get into your own place.

Though there’s no exact number, you’re probably aware that most lenders require a deposit of at least 5 – 20% of the total home loan amount – yikes. But wait! It is possible. 

If you’ve been paying rent for over 12 months, you’ve also got options, because some lenders can use this as proof of your ability to service a loan and classify it as ‘genuine savings’ for a deposit. 

There’s also something called a Keystart loan, which is an initiative from the WA Government where people with smaller amounts only require a 2% deposit.

That got your attention? You can find out everything you need to know, including if you’re eligible, here. 

And it gets better if you’re a first home buyer – you can use your First Home Owners Grant (FHOG) from the WA Government towards your deposit too! As an example, for a $400k house and land package, the deposit could be as low as $3k! Winning.

2. You Have To Pay Lenders Mortgage Insurance (LMI)

What on earth is Lenders Mortgage Insurance? 

LMI is insurance that protects the lender (eg. a bank) if you default on your loan repayments. Usually, it’s a one-off payment made by the borrower at the time of loan settlement, and it can be pretty steep. 

You might have heard the word thrown around a bit in discussions of buying your own home, but you don’t actually always have to pay it!. 

LMI only applies if you borrow more than 80% of your home’s value. If you want to avoid it, there are a few options: save for a larger deposit; include a guarantor (family member using their own property as security) on your loan; apply for a Keystart loan which is LMI free; or find a bank where LMI is more affordable (all banks don’t charge the same).

There are plenty of options to avoid the extra dollars.

3. You Can’t Buy On A Single Income

You’re independent and rocking it, and you don’t need no partner to get that dream home of yours!

You might be seeing heaps of couples posting their ‘sold sign selfies’ on Instagram and thinking that could never be you on your own – FALSE. 

Let’s bust this myth once and for all: buying your own home on a single income is absolutely possible. In fact, it’s in many ways just as easy as buying as a couple, if you put in that little bit of research. 

Step one: Know what you can afford and what you can borrow. Be realistic and consider ways you can reduce the size of your loan – for example, choosing a smaller place or block. 

Step two: Get your finances in order. Lenders look at your financial situation, not your relationship status. Have solid savings, prove you have the discipline and smarts to pay off a loan – knuckle down for a few months and get that money situation on the upside. 

Step three: Make use of those government perks. If you’re a first home buyer, apply for the First Home Owners Grant for that one-off $10,000 payment. There’s also the First Home Super Saver Scheme – another great government initiative where you can save for your home inside your super, which has all kinds of financial benefits. Research all your options and know what help you can receive – you’re not alone.  

4. You Can’t Get Your Own Home If You Have Debt

Debt, we all have it. It’s not a bad word. Whether you’ve got student debt, you’ve maxed out your credit card, you’re paying off a car loan, or you’re drowning in Afterpay orders – it won’t always stop you from buying your own home. 

You can always look into consolidating your debts, meaning your monthly repayment will be reduced and your debt-to-income ratio will improve, or you can work to pay them off more before you apply for a home loan. It’s not impossible. 

Whatever challenges you’re facing, Easystart can ease the money stress with Debt Assist. They’ll cover your debts – up to a certain amount – to help you get back in control and qualify for a home loan. 

Owning your own home is possible for anyone, and Easystart makes it…easy. 

Buying your first home and got more questions?

Check out the First Homebuyers Guide.

Which house and land is right for you?

Find out which house and land package is right for you – take the first step towards your new life and buying your own home.

Visit easystarthomes.com.au to get more info on owning your own home. 

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Disclaimer: The information shared here is general in nature and does not take into account your personal financial circumstance. Consider speaking with a finance professional to ascertain your next steps and capabilities.

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