The 6 steps to completing a property purchase

Step 1: Determine your maximum borrowing amount

  • Borrowing power is the maximum amount a lender will let you borrow to finance your property purchase.  Your borrowing power is determined by considering your income and financial commitments, as well as your current savings position and your credit history.  You also need to consider your expected living expenses, so you can repay your loan and maintain a lifestyle you expect.
  • Naritas can arrange finance for up to 98% of the property value, however, you will typically need to show you have at least 5% of the property value in genuine savings.  We will give you an indication of the amount you can borrow.  We can also help you to calculate your loan repayments, how long it could take you to pay off the loan, as well as the loan amount based on a repayment amount entered.

Step 2: Determine the costs

  • Once you have arrived at an estimate of your potential purchase price, we will need to consider the other charges that will apply on the purchase.  One of the biggest initial outlays you will have is the initial deposit, which is usually 10% of the purchase price.
  • You should also allow additional funds (approximately 5%) for applicable taxes, stamp duty, legal costs, and insurance associated with purchasing a property.
  • We will help you determine all of the costs associated with purchasing or refinancing a property, and calculate the full amount needed to complete your property transaction.

Step 3: Determining which loan is best for you

  • Each loan has many different features and fees to be considered, such as home loan rates, mortgage offset accounts, redraw facilities, and ongoing fees to name a few, read more…