Below we’ve pulled together a step-by-step guide to help you with entering the property market.
1. Do a price check
The first thing you’re going to want to do is do a bit of research into what kind of property you need. This could be an inner-city one bedder or something in the suburbs. Getting a feel for current market prices of your ideal property will help you figure out what kind of overall budget you’re looking at.
2. Know your numbers
Next, get stuck into the nitty-gritty of the numbers. Check out our borrowing power calculator to see how much you could borrow with Ubank and what your repayments might look like. At Ubank, we ask for a minimum 10% deposit for owner occupied home loans repaying principal and interest (P&I) when purchasing. Each application is limited to up to $2,000,000 when the loan to value ratio (LVR) is over 85%. If you can contribute more than a 10% deposit, that’s even better – the bigger your deposit, the less you need to borrow, making your loan amount and repayments smaller. You might also be eligible for the first home buyers grant. It’s also worth checking out the government’s Housing Australia site to get up to speed with the other schemes available to first home buyers.
3. Get your accounts in order
It’s worth getting a full picture of your finances before committing to the ongoing expenses of a home loan. Seeing what’s left over after saving and expenses are out of the way is a good place to start. Ubank makes the process simple with our dedicated Bills account and Bill Planner feature. It’ll help give you greater visibility of your committed expenses and help you set aside funds to strike a good balance between spending and saving. You can also use our Cash Flow feature to track what’s coming in and out of your accounts, helping you understand your spending patterns by category or merchant.
Trying to balance a savings plan for a deposit along with your expenses isn’t easy. We’ve made it simple to see if you’re saving more than you’re spending with our Bill Planner. Have greater visibility of your committed expenses and set aside funds into your Bills account to help you strike a good balance between spending and saving.
You can also set up savings targets for each of your Ubank Save accounts. Simply add the amount you need to save and by when, and we’ll create a plan to help you reach your goal.
4. Time to go loan shopping
Once you have your deposit sorted, it’s time to think about your lender so you can start applying for a loan and putting in an offer on your potential first home.
Always shop around to make sure you’re getting the best deal possible. With competitive interest rates and a simple digital application, we’re confident our Ubank home loans will catch your eye.
5. Apply for your home loan online
It’s now time to apply for your home loan. If you choose Ubank you'll get access to a 100% digital application form, so you could get a home loan without stepping foot in a bank. With our simple online form, enter your personal details and then along with your financial institution details, and liabilities or responsibilities our loan application software will securely take a snapshot of your financial information and submit that to our team. Alternatively, you can manually upload any required statements or documents to accompany your assessment. Either way, it’s a completely digital and secure experience from start to finish.
And while we've made it easy to apply from the comfort of your own home, you don't have to do it alone. Ubank's local home loan experts are just a call away 7 days a week on (02) 7264 0453 should you need help with your application.
Once we’ve reviewed your loan application, you may receive pre-approval, which can then give you the confidence to start hunting for your dream home or investment property.
6. Unconditional approval
When you’ve found the property you want to purchase, it’s time to get the final ok from your bank, known as the unconditional approval for your home loan. To apply for this with Ubank you would continue the online application with details of the home and the purchase amount to get the final ok to borrow the loan amount.
7. It’s time to sign on the dotted line and celebrate!
The next step is to sign the contract and send it back so you can progress to the settlement phase.
If you’ve applied with Ubank the settlement part of the process can take an average of 6 weeks, Ubank and your conveyancer or solicitor will help you through the steps needed to complete your property purchase and settlement, By this stage of the process, you can start planning DIY projects or the ultimate housewarming party.
We’re here to help make the process of buying your first home as simple to understand as possible, so you can focus on finding your dream home.
You can chat to an expert in the Ubank lending team 7 days a week on 13 30 80.
