The recommendations on budgeting are especially pertinent. However a weakness of the MoneySmart calculators are they they are static, we think they need a calculator to show the impact of changing interest rates for example. That said, the TrackMySpend App is a really useful tool to get to grips with what is being spent.
TV personality Shelley Craft hosts five videos featuring essential tips on the key decisions involved with a buying a home including:
- How to get a home loan;
- Working out how much you can afford with a mortgage;
- Saving to buy a home;
- Understanding the hidden costs of buying a home and;
- Being a guarantor for a home loan.
‘For many people, buying a home is likely to be their biggest investment. We encourage home buyers to take the time to understand their individual financial position and be aware of what they are committing to with a home loan. And it is always a good idea to shop around for the best deal’, said Peter Kell, ASIC’s Deputy Chairman.
‘It can be challenging to build a home deposit, a good place to start is to create a budget to understand how much you can comfortably afford to save, borrow and repay. ASIC’s MoneySmart offers a range of useful calculators and resources, including the savings goals and mortgage calculators, to help Australians take control of their money and reach their savings goals’, added Mr Kell.
Shelley Craft emphasised the importance of the issues addressed in the video series including the real costs involved with buying a home, saving for a deposit, the first home owner grant, interest rates and mortgage repayments.
‘Buying a home is full of excitement but it can also be stressful, especially the financial aspects’, said Shelley Craft, ‘it’s important to take your time, consider all your options and be sure to ask lots of questions, so you understand what you’re signing up for’.
‘Don’t rely on just one source when you’re shopping around for a home loan because saving even half a percent on the interest rate can save you thousands of dollars over time’, added Ms Craft.
To see ASIC’s financial tips for home buyers visit ASIC’s MoneySmart website.
ASIC is the Australian Government agency responsible for financial literacy, consistent with its strategic priority to promote confidence and trust in the financial system. ASIC supports the financial capability of Australians to improve their financial knowledge and skills and develop the attitudes and behaviours to make good financial decisions.
ASIC leads and coordinates the National Financial Literacy Strategy, which sets out a national framework for financial literacy work in Australia. The Strategy highlights the importance of people having access to tailored resources and tools, and addressing the financial issues facing vulnerable sectors of the community. People experiencing high financial stress and crisis are identified as one of a number of priority audiences in the National Strategy.