Changing to a New Home

There are many factors to consider when buying your new home. Firstly, selling your current home - before or after you buy your new home? Secondly, the costs associated with buying a new home. Get started with the right advice on how to sell your home and get the loan that works for you. Find out the process for buying your new home with these great tips and helpful facts.

Selling your home

Selling your home can put you in a stronger financial position. Learn about the selling process and make selling easy with HSBC's handy Checklist.

Bridging finance

Bridging Finance is a great option when you have found a new home, but haven't yet sold your current property. Find out how Bridging Finance can benefit your financial situation.

Buying costs

Find out what the costs of buying a new home are with our Summary of Costs. Get your finances in order and work out how much money you will need to set aside with our Calculators

Which loan is right for me?

HSBC has a range of home loans - compare them with HSBC's Comparison Table and get the loan that's right for you with HSBC's Home Loan Selector

Steps to Buying a Home

Steps to Buying

1. Research Property
2. Budget
3. Which loan?
4. Property inspections and legal advice
5. Make an offer
6. Finalise your loan
7. Settlement

1. Research Property

It's best to start your search with a fairly clear picture of what you want - a unit or house, 2 bedrooms or 4, near public transport or schools, a quiet or bustling neighbourhood? Use our Tips for Buying the right home to help ask the right question. If you're going to auctions, we have Tips for Auctions as well.

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2. Budget

HSBC will usually lend up to 90%* of the value of the property, so you could get started with as little as 10% of the purchase price. Use our Borrowing Power calculator to work out how much you could borrow.

You'll need to take into account the other costs associated with buying a house:

• Loan set up costs
• Conveyancing/legal fees
• Stamp duty

Stamp duty is the largest expense after your mortgage and varies by state. Stamp duty is payable on both the purchase price of the property you are buying and the amount you borrow for your home loan. Use our stamp duty calculator to work out how much your stamp duty will be.

If you are borrowing more than 80% of the value of your property, you will need Lenders Mortgage Insurance. * Lender's mortgage insurance is usually charged as a one-off premium and is calculated on a sliding scale. That is, the greater the percentage of the property value you borrow and the more money you borrow, the higher the mortgage insurance premium payable.

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3. Which loan?

We want to make choosing the right home loan as easy as possible. Our home loan selector asks you a few simple questions to help you work out what home loans best suit your needs.

Alternatively, you can speak to our home loan experts by calling 1300 308 880 or visit an HSBC branch.

You can also view our full range of home loans here.

Once you have an idea of the type of property you are looking to buy, your budget and which loans could work for you, it's time to apply.

To speed up the application process, it is recommended you have your documents handy to supply the correct information. Our documentation checklist will help you gather the information needed.

Once you submit your application. you can receive conditional approval - this means it is approved conditional on further information being verified e.g. income, property valuation etc.

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4. Property inspections and legal advice

Property inspections

Buying a property is probably the biggest purchase you'll make in your life, so it pays to do your research. After all, you don't want to suddenly discover once you've moved in that your new home is full of white ants or a wall is about to collapse.

A building inspection covers the condition of the building and identifies any potential problems, including cracks and rising damp, structural movement or inadequate plumbing.

Pest inspections include tricky areas under floors or on roofs to pick up any termite or woodworm infestation.

Legal Advice

While you are getting your finances sorted and searching for the perfect home, it's a good idea to engage a solicitor or conveyancer. They will take care of the legal side of buying a home. Friends, family, real estate agents and HSBC home loan experts will be able to recommend someone.

Fees will vary from state to state and it is wise to shop around. The cost will depend on the type of title the property is registered as, and also how much time and work is required. Call several solicitors or conveyancers to get quotes. Conveyancing can include strata title searches, council building certificates, drainage diagrams and documents from the state traffic authority and water board. In addition, they will handle the exchange of contracts during settlement.

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5. Make an offer

If you've found the perfect place you're ready to make an offer. There are two types of offers - unconditional and conditional offers. Conditional offers are more common however the type of offer can be discussed and agreed between the seller and buyer.

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. Unconditional offers are the norm at auctions.

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.

Exchanging contracts

There are two copies of the contract of sale, one for you and one for the seller. You both sign both copies before the contract is 'exchanged'. This is usually when the deposit is paid.

Paying your deposit

If you are buying at an auction, you are required to pay a deposit.

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).

Property Valuation

We will arrange a valuation of the property you are intending to purchase. This will provide HSBC with an independent valuation of what the property is worth, which is used to calculate if mortgage insurance is required and what percentage of the property value you are borrowing.

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6. Finalise your loan

Once the valuation has been complete and you have paid your deposit it is time to finalise your loan documentation. Your HSBC home loans expert will let you know if any additional information is required. Once complete, you will receive unconditional loan approval.

Insurance

As part of your loan contract you will need to show proof that you have home (building) insurance for the new property, effective from the date of settlement. You can get an online quote with HSBC Insurance anytime.

Loan contracts

We will send you a 'Letter of Offer' which is your loan contract. We recommend you review this documentation with your solicitor / conveyancer. To finalise the loan you will need to sign these documents and return them to HSBC.

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7. Settlement

The date of settlement is the date you take legal ownership of the property. The balance of the purchase prices must be paid this day. Settlement is usually 6 weeks (30 days in QLD) and can be negotiated as part of the contract of sale documentation.

What happens during settlement?

• Your solicitor / conveyancer will prepare and arrange for you to sign a Transfer of Land document. This should be done at least two weeks prior to the settlement date. This document will be handed over at settlement to HSBC - we will register it at the State/Territory Title's Office on your behalf. Upon registration the property will be changed over to your name.
• Your solicitor / conveyancer will contact HSBC, 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, 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.

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FAQs

Find out everything you need to know about buying a new home. These helpful frequently asked questions will put your mind at ease. Get the right answers and great advice here

Home Loan Selector Tool

Use our Home Selector tool to find the home loan that's right for you.