Turning the Dream of Home Ownership Into Reality With Capital Star Finance Solutions
Morgan Sette
In partnership with Capital Star Finance Solutions
A leading light in South Australia’s mortgage broking sector, Capital Star Finance Solutions’ Christopher Covino offers his advice for first-time homebuyers
Many Australians feel the dream of owning their own home is out of reach. The booming market, high demand and cost of living make buying a home daunting, but that is where a broker can help. They can put your mind at ease and help structure a holistic financial plan to help balance your finances and support you during the process of acquiring a loan.
Couple this with recent government initiatives, including a wide range of grants and stamp duty exemptions, and the task of successfully applying for a loan is becoming that much more achievable for everyday Aussies.
Leading broker Christopher Covino and his team at Capital Star Finance Solutions have access to loans from Australia’s leading lenders and can help tailor a financial plan that suits your wants and needs. Chris can guide you through the entire loan process, from your initial consultation through loan approval and beyond, ensuring you are financially prepared and leaving no stone unturned in pursuit of a loan that suits your needs, not the lender’s.
With over 13 years working as a chartered accountant in both Melbourne and Adelaide, Christopher has worked across a range of industries and understands the needs and wants of his clients. He and his team provide all the relevant information so his clients can make informed decisions when it comes to applying for a loan.
When asked what the biggest mistake most prospective first-time homebuyers make when it comes to securing a suitable loan, Christopher is quick to point out that “setting expectations for your first home too high” is the most common issue.
“Your first home is unlikely to be your forever home,” he says. “Just because you can borrow an amount, doesn’t mean you should.” Borrowing with balance means that when the time comes to upgrade, you won’t be financially restrained by your first loan.
Christopher also warns clients against overcommitting to what they can borrow without considering future changes.
“It’s important to factor in lifestyle and needs outside of a mortgage,” he explains. “Do you have plans to travel? Do you like to go out a lot? Is getting married or having kids on the cards? Pick a property and borrowing amount that fits within your lifestyle goals.”
Factoring in these life changes and allowing some wiggle room for interest rate changes when planning your budget can help make things less stressful later down the road.
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Capital Star Finance Solutions’ knowledgeable staff will help structure a financial wellness budget and make sure hidden costs like stamp duty, insurance and initial finance costs are factored in. They can answer all your questions in your initial consultation and map things out clearly and concisely before you commit to a loan.
One of the key takeaways Christopher wants people to understand is the importance of having an up-to-date budget to help balance mortgage repayments and day-to-day living expenses.
“It is impossible to stick to a budget if you don’t have one,” says Christopher, who also suggests “something as simple as making extra repayments adds up in the long term and reduces interest paid over the life of the loan.”
Another hurdle that often trips up new homebuyers is changing interest rates. It can be a stressful time when rates rise, but everything else stays the same. Christopher suggests opening an offset account to help offset any interest rate hikes.
When it comes to choosing between fixed and variable rates, Christopher suggests getting in touch with Capital Star Finance Solutions to have a chat with one of their trusted advisors. Although many people are opting for a variable interest rate, Christopher explains that “fixed rates can be good for budgeting, as you know exactly what you’re going to be paying for a period of time, whereas variable rates can take advantage of future interest rate reductions.”
At the end of the day, Capital Star Finance Solutions is here to help. Taking the stress out of the process ensures every aspect of your journey is handled with care and precision, and with Christopher and his team by your side, the dream of home ownership is closer than you think.
Capital Star Finance Solutions is located at Level 1, 134A The Parade, Norwood. Get in touch and learn more about what Capital Star Finance Solutions does by visiting capitalstar.smartonline.com.au or calling them on (08) 7130 0010.
