Steps to buying your home - Home loans

Your borrowing power is determined by your income, your financial commitments, your current savings and your credit history. You also need to take into consideration your living expenses, so you can repay your loan and maintain the lifestyle you are used to.

ANZ can lend up to 90% of the property value, however you will need to show you have at least 5% of the property value in real savings.

The how much can I borrow calculator will give you an indication of the amount you can borrow. This is an obligation-free and totally anonymous tool that will help you determine a price range for the search for your new home.

The ANZ Loan Repayment Calculator can help you to calculate your loan repayments, how long it could take you to pay off the loan, as well as the loan amount based on a repayment amount entered.

Once you have arrived at a ball-park figure for your potential purchase price, you will need to take into account the other charges that will apply.

One of the biggest initial outlays you will have is the deposit, which is usually 10% of the purchase price. You should also allow additional funds (approximately 5%) for the taxes, stamp duty, legal costs and insurance associated with buying a property.

The ANZ Home Loan Fee Calculator can help you to determine the costs associated with buying or refinancing a property, and calculate the full loan amount needed to complete your property transaction.

There are many different loan features and fees to be considered, such as home loan rates, mortgage offset, redraw and ongoing fees to name a few, and there are different loans to suit different needs. We can make choosing a home loan easier by providing key information that will help you make a well-informed decision.

You can view more details of our home loans or use the ANZ Home Loan Selector to find the loan that best suits your needs.

Be prepared - get approval in principle.

Approval in principle means you are given finance approval 'in principle' (if you have fulfilled the lending criteria) prior to purchase.

This means that you:

• have an indication of how much you are able to borrow
• have a realistic budget when you shop for a property, confirmed by an ANZ Home Buyers Certificate
• can be treated as a serious buyer by agents.

• Get pre-approved online

There are many ways to search for a property, one of the easiest ways is online. Visit www.realestate.com.au.

Real estate alert

Real estate alert asks you to specify your desired property criteria and will email you when there is a new property listing that matches your requirements. Visit www.realestate.com.au.

When inspecting a house, take our Home inspection checklist (PDF 34kB) with you to record the parts of the house that you like as well as dislike. It also gives you tips on what to look for, like checking the water pressure.

Make an offer

If you are buying at an auction, you are required to pay a deposit (usually 10% of the purchase price) immediately.

If you are buying privately, you are usually required to pay a holding deposit (can be anywhere between $2,000 and 10% of the purchase price).

Contract of sale

The contract of sale, prepared by the agent or by the vendor's solicitor, outlines your offer, the date of settlement and any conditions that must be met before the sale goes ahead. Discuss the contract of sale with your solicitor before you sign it. There are two kinds of offers - unconditional and conditional.

Unconditional offers

This is an outright offer to buy a property. You should be 100% sure that this is the property you want and that you have access to the money to buy the property. Once the vendor has accepted your offer, you are legally obliged to go through with the sale.

Conditional offers

A conditional offer is also a binding contract, provided that all your conditions are satisfied. You can only back out now if one or more of the conditions are not met.

Finalise loan

If you have pre-approval, you can finalise your loan by contacting your ANZ Branch Manager or call the Home Loan Hotline on 1800 100 641. You can apply for your loan in one of three ways:

Apply online

Call 1800 100 641

Visit an ANZ branch

Settlement

The contract of sale will state the amount of time you have to settle the conditions. When all conditions are met, the offer becomes unconditional, the sale will go ahead and the property will be yours.

How the settlement process works

• Your solicitor/conveyancer will prepare and arrange for you to sign a transfer of land document. You should ensure that this is done at least two weeks prior to the settlement date. This document will be handed over at settlement to ANZ. ANZ will register it at the State/Territory's Title Office on your behalf. Upon registration, the property will be changed over to your name.
• Your solicitor/conveyancer will contact ANZ, the seller's solicitor/conveyancer and other interest parties to arrange the date, place and time of settlement.
• Your solicitor/conveyancer should advise you, one week prior to the settlement, of the exact date and time of settlement and the amount of funds that you are required to provide prior to settlement (if applicable). This amount is usually required to be paid by bank cheque one day before settlement.
• After settlement has taken place the seller's solicitors will contact the real estate agent that sold you the property and advise them to hand over the keys to the property to you.
• Your solicitor should contact you and confirm settlement has taken place. They will also send you a statement of adjustment to show you how the funds have been disbursed to the parties involved.