Your Comprehensive Guide to Buying Your First Home in Canberra

Understanding Canberra's Housing Market

The Canberra housing market has shown consistent growth, with property values appreciating steadily over the past few years. As of October 2023, the median house price in Canberra is approximately $910,000, while the median unit price is around $530,000. This makes Canberra one of the more expensive Australian cities, but it also reflects the high quality of life and robust infrastructure available.

Preparing Your Finances

Before you start house hunting, it's crucial to have your finances in order. Here are some steps to help you prepare:

• Assess Your Budget: Understand what you can afford by considering your income, expenses, and savings. Use a mortgage calculator to get an estimate of your borrowing capacity.
• Save for a Deposit: Aim for at least a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI). However, some lenders may allow you to borrow with a lower deposit under specific conditions.
• Check Your Credit Score: A good credit score can improve your chances of securing a home loan with favourable terms.

The Home Loan Process

Getting a home loan in Canberra involves several steps:

• Pre-Approval: Obtain pre-approval from lenders to understand how much you can borrow. This strengthens your negotiating position with sellers.
• Choosing a Lender: Compare loans from different lenders. Look for competitive interest rates, flexible terms, and features that suit your financial situation.
• Final Approval: Once you've found a property, submit a formal loan application. The lender will conduct a property valuation and assess your financial position before final approval.

Practical Tips for First-Time Buyers

• Research Thoroughly: Understand the different suburbs in Canberra. Areas like Belconnen and Gungahlin are popular among first-time buyers for their affordability and amenities.
• Attend Open Homes: Visit open houses to get a feel for the market and refine your preferences.
• Consider Future Growth: Look for areas with potential for future development and infrastructure projects, which can increase property values over time.

Common Mistakes to Avoid

• Overextending Financially: Ensure you can comfortably afford your mortgage repayments, even if interest rates rise.
• Skipping Professional Inspections: Always conduct building and pest inspections to avoid costly surprises later.
• Ignoring Hidden Costs: Factor in additional costs such as stamp duty, legal fees, and moving expenses.

How Esteb and Co Can Help

At Esteb and Co, we understand the complexities of buying your first home in Canberra. Our experienced mortgage brokers can guide you through every step, from assessing your borrowing capacity to securing the best home loan for your needs. We work closely with a wide range of lenders to ensure you get the most competitive rates and terms available. Let us simplify the process and help make your dream of homeownership a reality.