Top tips for making a property purchase less scary

While first time property buyers are often spooked by the long-term financial obligation of a mortgage, fearing that it may reign in their way of life, Mortgage Choice spokeswoman Kristy Sheppard explains that it doesn’t have to put an end to all of life’s luxuries.

There’s a common fallacy that having a mortgage means there’ll be no money left over for splurges, outings or special occasions, says Sheppard.

“However, mortgage stress can usually be avoided by setting a realistic budget from the beginning, factoring in interest rate rises, borrowing within your means and avoiding unnecessary post-purchase debt,” she says.

“All of this will help ensure there is money left in the kitty for treats every so often.”

While Sheppard notes that owning property isn’t necessarily for everyone, it’s often more achievable than people realise. The decision, however, should only be made after careful consideration of all the pros and cons.

Mortgage Choice offers up these tricks and tips for first time buyers:

• Do your homework but save time by using property and home loan news sites, online forums, social media sites and loan comparison facilities to familiarise yourself with the market. Ask questions, compare ideas and gather firsthand accounts of the possibilities, pitfalls and benefits.

• Start saving now so you don't feel overwhelmed or in a panic when it comes to building a deposit for your ideal property.

• Practising your repayments makes perfect home loan sense; that way when the time comes there should be no real financial surprise.

• Be application ready and have all the necessary documents on hand.

• Seek help from someone in the know.