Essential Guide for First Homebuyers in 2024

Beginning the process of buying your first home in the property market can be both exciting and intimidating. According to recent data, the property market in Rockhampton has been performing well, with house prices defying trends to rise by around 9%. The average values of Rockhampton homes increased, and auction and private treaty clearance rates held strong throughout the year. 

This guide for first homebuyers in early 2024, provides a step-by-step approach to understanding the mortgage process, with expert insights from Finance First, your experienced mortgage brokers in Rockhampton.

Understanding the Property Market

The outlook for 2024 is positive, with major bank economists predicting a 3-5% increase in house prices over the year. In 2023 home values grew by 8.1%, but this growth varied across different cities. However, affordability pressures are mounting, and borrowing costs are rising, which may lead to a cooling of the market. 

Despite these challenges, property prices have continued to rise, albeit at a slower pace. The outlook for the Australian property market in the last few months of 2023 and into 2024 is positive, with property prices predicted to rise between 3 and 5% over the year. Cities in Queensland like Brisbane experienced significant growth due to tight supply and high demand.

This could mean a tighter monthly budget, as more cash will go towards servicing your mortgage. It's a significant shift that underscores the importance of understanding how the cash rate can influence your home loan's interest rate and, consequently, your financial planning.

The Home Buying Process

Home buying begins with understanding your financial position and the property market by establishing a budget early on and assessing your credit score. This initial step ensures timely bill payments and avoids frequent credit applications to maintain a clean credit history and sets the foundation for your property search and mortgage application. 

Consulting with a knowledgeable mortgage broker can provide you with tailored advice and access to a range of suitable loan options. They have access to a range of loan options based on your specific financial situation, guiding you through the entire loan process. At Finance First, we offer personalised service, ensuring that each client's unique needs are met.

Steps to Homeownership

Initial Consultation

The first step is to discuss your goals, financial situation, and borrowing capacity. This can be done in person, by phone, or online, providing you with a clear understanding of what you can afford. You may be entitled to one of the government First Home Guarantee schemes - your broker will give your clear advice as to your options.

Choosing the Right Loan

With various loan types available, including variable rate loans, fixed rate loans, and guarantor loans, select one that aligns with your financial objectives. Your broker will help you sort through these options.

Pre-approval

Once you've chosen a lender, your broker will handle the paperwork, leading to a pre-approval. This gives you an idea of your borrowing power and sets you up for the next phase – house hunting.

Building a new home 

Purchasing a house & land package can be a smart move for first-time buyers. It often allows access to the First Home Owner Grant (FHOG). Queensland has doubled its First Home Owner Grant to $30,000, helping about 12,000 first-time buyers between now and June 2025. Alternatively, your broker can advise you as to whether an established home would be a better fit for you.

Finding Your Home

With pre-approval in hand, you can confidently search for your dream home within your planned budget.

Finalising the Purchase

After making an offer on a property, your broker will track your application to ensure a smooth process, leading to settlement. The settlement process is the final step where the buyer officially becomes a homeowner.

Conclusion

Your first home buying is a journey that requires careful planning, informed decision-making, and the right support. By understanding the mortgage process, choosing the appropriate loan, employing strategies to manage your mortgage effectively. You can navigate this journey with confidence and ease. Embrace the path to homeownership and secure your financial future with the right guidance and expertise.

Partnering with Finance First in Rockhampton

Selecting the right mortgage broker is a pivotal decision for first homebuyers. Finance First can guide you through the entire process with their extensive experience, personalised service, and deep understanding of the local real estate landscape.

Our team is committed to guiding you through every step of your home-buying journey, offering regular mortgage reviews and market insights to ensure your loan continues to meet your evolving needs from initial consultation to final settlement.

Contact us today, our principal John MacMaster has 25+ years experienced mortgage broker to help you get the best finance options for your mortgage and get started on your journey. Our partnership with our experienced real estate agent Rossana Winters will guide you through finding your dream home. Contact us today to explore how you can purchase and finance your dream home or investment property seamlessly with the combined expertise of Finance First and Realty One Estate.

FOR MORE INFO:

Phone: (07) 4927-7220

Email: [email protected]

Address: 3/71 High Street, Berserker, QLD 4701