Tips for buying a home during coronavirus

While this can be a good time to buy, we are in an uncertain situation so you should take extra care to make sure that you’re making the right decision. Here’s what you should consider:

·       Make sure your job and income are stable

Banks and lenders are performing extra employment checks prior to settlement. Make sure that your job is secure and that your income is stable. You may even want to get an employment letter from your employer to confirm your employment status.

·       Get pre-approved before making an offer

Banks and lenders are tightening their policies at this time, so it’s especially important to make sure you’ll be able to get a home loan. Talk to us, we will help you review your situation and find you the right lender.

·       Work with a buyer’s agent

A buyer’s agent will help you build a shortlist of suitable houses and – most importantly – will help you arrange private inspections of the properties you are interested in.

·       Negotiate on price

House prices have already started to decline in some areas. Make sure that you do a thorough property valuation to make sure that you don’t overpay. 

If you negotiate well, you may be able to secure a 5-10 per cent discount on asking price depending on the type of property and location.

Will I still be able to get a loan?

In response to Coronavirus the lenders have become a bit more conservative about approving loans.

If your income hasn’t been affected, or you are working in a job that won’t be impacted by changes to your income – like a nurse, teacher, or in an industry that is booming – you will be in a strong position to get your home loan application approved.

But if you are on casual or contract income, it might be more challenging to get approval as they consider you a higher risk of losing your income.