Are you spooked by a mortgage?

Top tips to make a purchasing property less scary

For many, Halloween is the time for scary films, eerie pumpkin carvings and lolly-seeking children dressed up as ghosts and goblins. In the midst of the Spring property season and with so much spook about, it’s understandable if you find buying your first property frightening.

Local franchise owner for Mortgage Choice, Tony Fornaro said, “Property ownership need not be scary, as long as you take the time to research your options, prepare yourself for the lifestyle change - emotionally and financially - and think through each decision before finally committing yourself.”

“It’s also important to remember that a property purchase provides you with an asset. So, while accruing the related debt may be daunting, you're actually adding to your long-term financial wealth. There are no real tricks to achieving property ownership; it’s hard work but many Australians will vouch the treat is well worth it.

“To put the ‘scariness’ into perspective, the top five concerns for first homebuyers aiming to purchase this year, according to our 2009 Mortgage Choice First Homebuyer Survey, was the length it takes to pay off a home loan, the fear of not being able to afford repayments, the concern of being committed to such a large financial obligation for such a long time, the amount of money repaid by the end of the loan term and buying the wrong home.

“These are all valid concerns, especially when considering imminent rate rises, widespread pay increase freezes, high migration figures and the pressure of supply versus increasing demand. Yet, undertaking thorough research while seeking professional knowledge and support can help ensure nothing scary comes your way.

“Ask all the necessary questions before you are locked in; careful research will help you understand what those questions are. This may involve searching the web, talking to friends and family about the purchase decision and your mortgage choices and seeking professional finance advice.

“If you're still in doubt about your ability to repay a mortgage on your own, consider purchasing with a friend, partner or family member. Our survey found that an increasing number of first time buyers were looking to purchase with someone else to ease the financial obligation. Make sure, however, that you consult professional legal advice to understand the roles and responsibilities of each party before committing yourself.”

This Halloween, Mortgage Choice, Australia’s largest independently owned mortgage broker provides these handy treats to help make buying your first property a rewarding experience.

Research all that you can but save yourself valuable time by embracing new media - online forums and social networking sites are a great place to ask questions and gather firsthand accounts of the pitfalls and benefits.

Set up a great savings plan early on so you don't feel overwhelmed or rushed to scrape together a deposit when you find your ideal home. Challenge yourself to save as much as you can within a timeframe; this will give you a clear goal post and help you to create a good savings habit. A small treat here and there is a good reward for staying on track.

Practice making loan repayments ahead of time. Visit a reputable mortgage broker to help you figure out what your weekly/fortnightly/monthly repayments would be and budget accordingly so when the time comes it's no real financial surprise.

Be organised with your paperwork. Set up a folder to collect all of the documents you’ll need for applying for a home loan so when the time comes you’re not rushing around searching for that important piece of paper. Documents such as passports, bank statements, recent pay slips or tax returns, plus written details about assets, liabilities and any other income will all be required.

You don’t have to do this on your own. 41% of all new Australian home loans are written through a mortgage broker. Offering a step-by-step guide to the mortgage market, they can help reduce your apprehension and empower you to make the right move.

Visit Tony’s website at www.mortgagechoice.com.au/tony.fornaro or call 07 3624 0755.