Tips for First Time Islamic Home Buyers In Australia

Post : April 9, 2022

If you meet all the requirements to become Islamic Home Buyers in Australia, you must be pretty excited about finally purchasing your dream home.

However, it’s common to think that this process is complicated and would cost you an arm and a leg. However, moving into your dream home might be more accessible than ever, and halal loans can make this happen.

All it takes is to have the proper guidance on the steps to take to access Islamic home loans as first-time Islamic home buyers in Australia.

So, here are some of our best tips on the factors you need to consider when you’re about to build or buy a property for the first time.

Assess Your Credit Report For Halal Loans 

Since various Islamic home loans available in Australia have different terms, you must be sure that you can handle the home deposit. So, start by calculating how much you can afford to determine the property you would be setting your interest on.

There would always be some risks and benefits to getting financial help, and it’s essential to take this into perspective when buying or building a property.

Therefore, this starts with checking your credit report thoroughly to ensure that there are no loopholes that could lead to lenders rejecting your loan applications.

Knowing what’s on your personal credit report is the first step and will help you understand your financial health when you apply for a halal loan.

Have A Spending Limit As Islamic Home Buyers

It’s tempting to want to spend as much as possible to get the best when building or buying your home. However, if you don’t put a cap on this, you might spend way more than you can afford, eventually leading to debt. Building or buying a new home comes with some unavoidable costs.

Some of them include the actual price of the property, which you would likely get a loan to pay off, except you can pay it all in cash and a lender’s mortgage insurance. You also have to account for government fees, legal/conveyancing fees, payments to building and strata inspectors, moving costs, and other ongoing expenses.

Therefore, these mandatory payments are likely to come up through your journey toward homeownership. You need to prepare a budget that takes this into account without putting so much pressure on your Islamic finances.

Pick The Right Location As Islamic Home Buyers

Choice of location when building or buying a new home is important. This would determine if you get riddled with a lot of unnecessary extra expenses or go through a homebuying journey that is smoother than ever.

So, before officially signing off on that contract of sale, you need to make sure that the location of your property ticks a lot of essential boxes. Ask yourself questions like:

"What is the suburban home value of this property?"
"Will this location be uncomfortably far from my family, friends, and workplace?"
"Would this property require home renovations?"
"How close am I to local amenities like transportation, schools, and shops?"

These are only a few questions to have in mind when picking a location for your property. You should also consider the area's crime rate and other information you can get quickly from approved real estate agents.

Confirm If You Qualify For Halal Home Loans

Do you qualify for financial assistance? This is an essential question in your quest for homeownership. Your home purchase can be funded in various ways, and the experienced real estate agents at Afiyah Financial Services can give you all the information you need to get started with Islamic home loans.

This is where you get the detail about the halal home loans available to you, their fees, and individual rental rates. You should also be aware of the pros and cons of each loan type, including Islamic home loans. Since these home loans have various approval times, it’s also a great idea to go for a loan pre-approval which will help you know the exact amount you need to borrow for your home purchase.

Wrapping Up

Finally, before officially accepting any property as yours, carry out a detailed home inspection. Getting a property as first time Islamic home buyers becomes so much easier when you have an expert to guide you. This is what we specialize in at Afiyah. To save yourself some future heartache, you can carry out a proper home inspection on ventilation, electrical connections, and plumbing fittings.

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