What you need to do now to buy a property in 2017

Adam Smith 7 February 2017 NEWS

What to do to buy property in 2017

If you plan to buy property in 2017, here are the steps you’ll need to take to get started.

As the New Year gets into full swing, it’s time to finally start working on those resolutions. If your resolution was to become a property owner, your work really needs to begin in earnest. The steps you’ll need to take, or have already taken, will depend on when you’re planning to buy. We spoke to Mortgage Choice head of corporate affairs Jessica Darnbrough, who offered a month-by-month analysis of how to keep your New Year’s resolution.

What you need to do if you want to buy in:

If you wanted to buy in February

If you were hoping to buy property this month, you should be well underway in your journey. If you set a goal to buy in February but haven’t started planning yet, odds are you’re a bit too late. But Darnbrough says those who’ve put in the time and planning already could still be on track to become homeowners by the end of the month.

What you should have already done

If you’re buying in February, most of your work should be done already, and you should just be awaiting the final steps of settlement. This means that you’ve already found your property, saved your deposit and at the very least gotten home loan pre-approval, if not formal approval. Darnbrough says you’ll also want to have all your paperwork in order, including details of income, assets, expenses and liabilities. You should also look at resolving any credit impairments that might be on your record.

What you should start doing now

If you’re heading toward settlement on a home loan, make sure you’re communicating with your solicitor or conveyancer about any additional documents you’ll need. If the property you’re buying is one you plan to live in, you also need to sort out details like hiring removalists and getting your utilities switched on. Check out our moving guide for a full rundown of everything you’ll need to do.


If you wanted to buy in March

If you’re looking to buy in March, you’ve got a bit more breathing room, but you should still be getting toward the pointy end of your property journey. Odds are you’ve got most things in order already.

What you should have already done

Darnbrough says you should have already done research into the type of property you want to purchase, the suburb you want to buy in and how much you can borrow. You should also have already saved a deposit, and spoken to your bank or mortgage broker about your financial goals. You should have pre-approval on your home loan, and be actively looking at properties for sale that meet your requirements, she says.

What you should start doing now

You need to begin managing your debts and financial obligations to ensure you have a clean credit history, as well as work to resolve any credit impairments you may have on your record, Darnbrough says. You should continue your research into properties that suit your requirements. Now is also a good time to begin getting paperwork together for your home loan.


If you wanted to buy in April

If you’re looking to buy in April, you may still have quite a bit of work ahead of you. However, Darnbrough said there are some tasks you should already have well underway.

What you should have already done

Darnbrough says those wanting to buy in April should have already looked at their credit history to ensure they have the ability to take out a home loan. You also will want to have researched the market to get an idea of what you might expect to spend in your desired area, as well as identified how much of a deposit you’ll need. You should have saved at least 90% of that deposit, and spoken to your bank or broker about pre-approval and your borrowing capacity, she says.

What you should start doing now

Darnbrough recommends continuing to save at least 10% of your pay packet each month. She says you should also begin looking into your lender options. “If you don’t think you will be able to save the deposit you need, don’t fret. There are some lenders that are happy to use rent as evidence of genuine savings,” she says. You should also continue making bill payments and meeting credit obligations on time. Darnbrough says it’s also a good time to look at minimising your debt. “If you owe money on a credit card, pay it off as soon as possible, or at the very least start paying more than the minimum amount each month to ensure it is paid off and you don’t have huge amounts of credit card debt hanging over your head,” she says.


If you wanted to buy in May

May will come around quicker than you realise, so there are a number of tasks you should already have well in hand, as well as a number you’ll want to start now, Darnbrough says.

What you should have already done

Once again, you should have already looked into your credit history to make sure you’ll be eligible to take out a home loan. You should also have a good idea by now of what homes in your desired area are selling for, Darnbrough says. As for your deposit, you should have at least 85% of it saved already. You’ll want to have an idea of what lenders are offering, and the interest rates you might expect to get on a home loan.

What you should start doing now

Continue saving for your deposit, Darnbrough says. While you should have the vast majority of it already saved, it’s a good idea to continue putting aside at least 10% of your pay. Also continue managing all your current debt obligations and bill payments, as well as paying down as much debt as you can. Lowering your debt obligations will increase your borrowing capacity.


If you want to buy in June

If you’re looking to buy in June, you should be in research mode at the moment. You should be looking into lenders, properties and your own creditworthiness to make sure there are no nasty surprises when you’re ready to make your move.

What you should have already done

Most of the work you should have already done is research, Darnbrough indicates. You should have researched the property market, your lender options and your own credit history. Part of this research should have been talking to friends and family about their own buying experiences. They may be able to offer good insight into the types of property or areas you should be checking out, as well as who they sourced their finance through. You should also be sticking to a simple budget, Darnbrough says. This will have ensured that you’ve been successfully managing your expenses and been able to save for a deposit. By this time, you should have 80% of your deposit saved up.

What you should start doing now

This is a good time to pay down debt. If you haven’t already, start paying off your credit cards. If you have multiple credit cards, you should also consider consolidating them. Once you’ve paid your cards down, look into dropping your credit limit. When a lender is looking into your creditworthiness, they consider not just what you actually owe, but the combined total limits of all your credit cards. The lower your credit limits and debt obligations, the better your borrowing power is likely to be.


If you want to buy in July, August, September or October

One thing to think about if you’re looking to buy in July, August, September or October, Darnbrough says, is tax time. If you finalise your return quickly, your refund could potentially be used to bolster your deposit.

What you should have already done

If you want to buy in July, August, September or October, you should have already saved at least 80% of your deposit, Darnbrough says. You should have also done your research and checked into lender and broker options online. It’s important you’re also sticking to a simple budget.

What you should start doing now

Slow and steady wins the race, if you’re looking to buy in July, August, September or October. Start paying down your debt obligations, and make sure you’re keeping up with all your bills. It’s smart to also look at your credit history to make sure there are no nasty surprises that could keep you from getting a home loan.

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You also need to make sure you’re doing your research, Darnbrough says. The more you know about how the home loan process works and what lenders and products are on offer, the better placed you’ll be when you start looking in earnest.


If you want to buy in November

Even if your goal is to buy toward the end of the year, there are many steps you can take now to prepare, Darnbrough says.

What you should have already done

While November may seem a long way off, Darnbrough says you should still be well on your way to saving a deposit if you want to buy by the end of the year. “Data from Mortgage Choice found 61.1% of first home buyers took more than three years to save the deposit needed for their first property purchase,” Darnbrough says, Also, if you’re looking to buy with a significant other, you should make sure you’ve spoken to them to make sure your property goals are aligned, Darnbrough said.

What you should start doing now

This is a good time to begin talking to family and friends who have bought property about their home buying experiences. If you haven’t started researching home loans, Darnbrough says, you should start now. While rates may change between now and the time you apply for a home loan, doing some research will still give you an idea about the different products and lenders in the market.


If you want to buy in December

It’s your last month to fulfill your New Year’s resolution. If you’re planning on making home ownership your gift to yourself this Christmas, you should start the process now, Darnbrough says.

What you should have already done

Once again, you should already be saving a deposit. Most homebuyers take several years to save a deposit, Darnbrough said, so you’ll want to have already begun gathering your deposit and developing good saving habits.

What you should be doing now

Now is a good time to look into savings options if you haven’t already, Darnbrough says. Make sure your deposit funds are going into the right savings account that will offer you the best interest rate. It’s also not premature to begin researching your home loan options, as well as getting a feel for the property market. While rates and property prices are likely to change between now and December, you can still get a better idea of what to expect by beginning your research now.

Ready to start comparing home loans? Check the table below for today's rates

Rates last updated November 13th, 2018
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.87%
3.91%
$600
$0 p.a.
95%
A home loan with no ongoing fee and a redraw facility that you can borrow up to 95% LVR.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.68%
3.70%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.75%
3.80%
$600
$0 p.a.
90%
Competitive variable rate mortgage with a partial offset account. Get this loan with a 10% deposit.
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150000 get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable essentials interest rate product aimed at refinancers looking to switch to a lower rate.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Get double Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.59%
4.00%
$845
$350 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.69%
4.86%
$0
$395 p.a.
90%
Special discounted rate for first home buyers. Start your home buying journey with 2 years of fixed repayments at a competitive rate plus package discounts. Available with a 10% deposit.
3.69%
4.12%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.79%
3.82%
$0
$0 p.a.
80%
An essentials variable investor mortgage with a high borrowing amount so you can fund a large purchase.
3.75%
3.75%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
3.75%
4.72%
$0
$299 p.a.
95%
Owner-occupiers can enjoy a discounted fixed rate, a rate lock feature and the ability to make additional repayments.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn double Velocity Frequent Flyer Points on your mortgage for a limited time (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.79%
3.80%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Plus $1,500 cashback offer for eligible refinancers.
3.84%
3.85%
$0
$0 p.a.
70%
Keep your LVR at 70% or below and enjoy a special discounted rate. Also, pay no application or ongoing fees.
3.64%
3.59%
$0
$0 p.a.
80%
Fast, 100% online application process. Very limited fees. Optional offset account (with fee).
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.80%
3.80%
$0
$0 p.a.
70%
Earn tens of thousands of Qantas Points to spend on flights, hotels and more with this variable owner occupier mortgage. Competitive variable rate mortgage that requires a 30% deposit.
3.59%
3.99%
$600
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account.
3.71%
3.71%
$0
$0 p.a.
70%
A variable rate home loan that has a lot of flexible features. This loan has a 100% offset account.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.85%
3.85%
$0
$0 p.a.
80%
Low fee loan with extra repayments. Pay no application and ongoing fees and take advantage of split and redraw options.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.64%
3.64%
$0
$0 p.a.
70%
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.87%
3.91%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.84%
4.22%
$345
$0 p.a.
80%
Flexible, competitive variable rate that has flexible repayments, split and redraw facilities.
3.79%
4.67%
$0
$349 p.a.
90%
A package home loan with a sharp fixed rate and a 10% deposit option for low deposit borrowers.
3.70%
3.90%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.85%
4.18%
$500
$0 p.a.
95%
Apply for Easy Street fixed rate home loans and get a competitive loan with a fixed interest rate.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.72%
4.10%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan. Bonus $1,500 cashback for refinancers.
3.59%
3.58%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.99%
4.13%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with no application fee.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.84%
3.82%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.89%
3.94%
$0
$0 p.a.
80%
Pay no application or ongoing fee and borrow up to 80% LVR.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Borrow up to $500000 and earn Velocity Frequent Flyer Points (terms and conditions apply).
3.75%
4.00%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate. Cut down on interest costs with a 100% offset account.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.79%
4.87%
$0
$395 p.a.
95%
Low deposit home loan. Enjoy flexible repayment options while paying limited fees.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.67%
3.72%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.93%
3.94%
$0
$0 p.a.
80%
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.99%
5.35%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
3.99%
3.99%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio. Take advantage of split and redraw facilities.
3.89%
3.94%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
4.13%
4.14%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.94%
4.95%
$595
$0 p.a.
95%
Borrow up to 95% LVR of the value of the property you're buying and pay no application or ongoing fees.
3.74%
4.01%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at $70% or below with this innovative online lender.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
3.69%
4.54%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150000 receive a discounted rate. NSW, QLD and ACT residents only.
4.29%
4.26%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.

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