What are the main challenges to purchasing a property? 

Saving for a Deposit 

• The biggest hurdle for most buyers is accumulating sufficient funds for a deposit. 
• Ideally, 20% is needed to avoid Lenders Mortgage Insurance (LMI), but some lenders offer options with a lower deposit. 
• First-home buyers may access grants or government schemes to assist. 

Loan Approval & Borrowing Capacity 

• Banks assess income, expenses, existing debts, and credit history. 
• Self-employed applicants face stricter requirements, often needing two years of financials. 
• Recent changes in income (e.g., time off work, new jobs) can impact borrowing power. 

Managing Existing Debt 

• Credit cards, personal loans, and buy-now-pay-later services can reduce borrowing capacity. 
• Reducing or paying off liabilities before applying for a loan improves chances. 

Rising Interest Rates & Repayments 

• Rate increases affect affordability and borrowing limits. 
• Consider fixed vs. variable rates and buffer for potential increases. 

Finding the Right Property 

• Market conditions and competition from other buyers make securing a home challenging. 
• Pre-approval helps strengthen offers but isn’t a guarantee of final approval. 

Understanding Contract & Legal Aspects 

• Purchase contracts, cooling-off periods, and settlement terms vary. 
• A conveyancer or solicitor is crucial to avoid legal pitfalls. 

Additional Costs Beyond the Purchase Price 

• Stamp duty, legal fees, inspections, and potential renovations add to the total cost. 
• Factoring in these expenses ensures realistic budgeting. 

If you’d like to discuss how to avoid these and other challenges,
or discuss your own situation, please contact us. 

Disclaimer: This content is for general information purposes only and does not consider your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.