Are you ready to take the next step in your property journey and buy your next home? While you’ve been through the homebuying process before, buying a second property is different to buying your first home. And even if it’s been a while since you bought your first property, you’ll probably still remember that buying a home can be a complex process. 

Understanding your finances

Whether you’re keeping your current home or selling, you will need a good understanding of your costs and affordability when looking at buying your second property. 

What is your budget, what can you afford to do? 

A good place to start is to work out your borrowing power, which is how much money a lender may be able to lend to you. You can use our borrowing power calculator to help you work out how much you may be able to borrow for a home loan. 

You can also use our home loan calculator to work out what your new home loan repayments will be. If you’re keeping your existing property, consider whether you will be able to financially cover your existing repayments as well as the new ones, factoring in fluctuating costs like interest rates. 

As well as home loan repayments, factor in all the costs you are currently paying for that property, noting you will also need to pay these for the second property. These include utility bills, insurance, council rates, and body corporate fees to name a few, that you may need to pay for, depending how you are going to use your existing property. Consider all the general costs to maintaining a property. 

While budgeting, remember all the upfront fees that are involved in buying a property, such as stamp duty, Lenders Mortgage Insurance (LMI) if required and conveyancing costs for example.

Choosing a home loan for your next property

Choosing the right home loan for you when buying your next home is important, as they can vary across the board. 

Like when you bought your first home, you will need to look at interest rates and decide whether a fixed, variable, or split loan is right for you, and whether you want to make principal and interest repayments or interest only repayments. For a deep dive into choosing a home loan, visit our dedicated blog

At People’s Choice, we have a range of home loans you can choose from. Browse them here or speak to your local Home Loan Adviser who will be happy to help you navigate the journey of buying your second home. 

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