resi mortgage corporation pty limited ABN 61 092 564 415
Level 3, 458 Wattle Street, Ultimo NSW 2007
Tel 02 9280 0007 Fax 02 9280 0009 E-mail save@resi.com.au PO Box 12 Broadway, NSW 2007
MEDIA RELEASE
JANUARY 13, 2010
FIRST TIME BORROWERS CAN USE NOW
TO CARRY OUT DUE DILIGENCE ON THEIR PLANS
Leading mortgage lender Resi Mortgage Corporation says with several weeks left until the property market is
back in full swing, first time borrowers should be using this time now to carry out last minute due diligence on
their plans for buying their first property.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says this time is ideal for borrowers to go over the
checklist on their plans to buy a property whilst the property market is in its annual hiatus - without feeling like
they’re being left behind.
She says: ”This quiet time presents a great opportunity to ensure you have covered everything you need to in
terms of arranging pre-approval on your loan and fine tuning your property search so that when the time is
right to buy, you don’t miss out because you weren’t properly prepared.”
Montgomery says with property prices continuing to rise and with more interest rate rises predicted, first time
borrowers in particular need to be completely prepared to act, when the right opportunity to purchase presents
itself.
“Too many times we see prospective buyers miss out on their dream home because they didn’t have all the
necessary paperwork in order - and with the property market already set to heat up further in 2010, first time
borrowers need to ensure this doesn’t happen to them,” she says.
Montgomery says first time borrowers should work through the following ten point checklist:
1.
Determine what you can afford by speaking to a range of lenders, before you start your property
search.
2.
Ensure your credit profile is in the best possible shape by lowering any existing credit card limits and
paying off, or paying down, any outstanding debts.
3.
When speaking to lenders to find out what is the most appropriate loan for you, don’t just look at the
rate they’re offering but also the fees on the loan as well as the loan features. These features should
be largely determined by what complements your personal circumstances for the medium to long term
and also what lifestyle you can afford, even if rates rise. You should also get a feel for the level of
customer service and ongoing support you can expect from each lender as well as asking if they can
give you a realistic indication of how long it will take to process the actual loan application.
4.
When you have narrowed down your search for the most appropriate home loan, obtain pre-approval
on the loan so that when you do go to purchase, you can confidently make an offer on the property or
bid at auction knowing you are pre-approved for finance, subject to a valuation.
5.
Be aware that if you don’t have a deposit of at least twenty percent on the property you wish to
purchase, you may be required to pay Lenders’ Mortgage Insurance (LMI) when you take out your
loan. LMI costs will vary based on loan sizes but if you don’t make an allowance for it from the onset,
your initial property purchase costs can increase by thousands of dollars.
6.
Investigate and then factor into your budget any of the other property related expenses you may need
to pay such as pest and building inspections on any prospective purchases; loan fees including
valuations etc; solicitors or conveyancing costs; stamp duty, transfer duty, mortgage duty and any
relevant home or personal insurances.
resi mortgage corporation pty limited ABN 61 092 564 415
Level 3, 458 Wattle Street, Ultimo NSW 2007
Tel 02 9280 0007 Fax 02 9280 0009 E-mail save@resi.com.au PO Box 12 Broadway, NSW 2007
-2-
7.
Once your finance is arranged and your purchase budget is finalised, you can then carry out a
thorough check on the selling price of all the properties in the areas or price bracket that you have
determined you can afford - and then compare why some properties sold for more or less.
8.
While many people are still on holidays, take the time to drive in and around the areas that interest you
to get an idea of what sort of people live there.
9.
Look at what amenities you will need to be near such as schools, public transport, shopping centres
and parks. Are there any streets you would want to avoid, such as busy thoroughfares? Does the local
Council have any developments plans that will affect a particular location?
10. Finally, create a checklist of all the features you want in your home, keeping in mind how long you’re
planning to live there and how much your needs might change during that time. For example, if you’re
planning to bring up a family in the home you’ll undoubtedly need more space and possibly a decent
yard.
“One important final piece of advice for first home buyers is to be realistic in your expectations. Look in the
more affordable areas and don’t expect your first property to be the equal of your parents’ home,” adds
Montgomery.
ENDS
Media Contact:
Lisa Montgomery, Head of Consumer Advocacy,
RESI Mortgage Corporation: (02) 8204 5012 or 0414 592 553
Karen Bristow - Kardan Consulting: 02 9967 3245
NEWS 
