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Seven Steps to Owning Your Own Home.

Buying a home means you’ve worked hard to earn your own slice of the world. It’s a huge milestone! You’ve done well to be in the market but getting started can feel overwhelming. There are usually a lot of questions – will my loan be approved? Can I pay for it? Where do I get a 10% deposit? What is a contract of sale?

But it doesn’t have to be hard. Here’s a seven-step guide to help make buying a home easy. We’re here to help every step of the way.

1. Find a bank you trust

You will need a strong relationship with your bank to have a successful home-buying experience. It helps to be aware of all costs involved so there are no surprises.  

Your bank will explain the pre-assessment process. This includes how much you can borrow, your budget based on your financial position, your spending limit, and any other fees. At Kina Bank we’re completely transparent and believe the home-buying process is all about you, not us.  

2. Get your deposit together

In PNG, you are typically required to put down a 10% deposit for a property and can sometimes negotiate this percentage with the buyer. There are three ways you can secure your deposit.  

  • Save cash in your bank account  
  • Access housing eligibility funds through your super
  • Raise finance on an unencumbered property to purchase another one. An unencumbered property is where you own the property outright with no mortgage or loans secured against it (debt free) and this must be on a state lease title 
    3. The search begins

    This is the best bit – house hunting! There are many different ways to find your new home. Try searching popular PNG websites such as hausples.com.pg or ljhookerpng.com. You can also visit a real estate agency, advertised private sales, or mortgage sales listed by banks in the newspaper.  

    4. Put in an offer

    When you find the home that’s perfect for you – put in an offer!

    5. Maximise the value

    Now you have approval, it’s time to prepare the paperwork with your lawyer and the bank. You will need to meet all bank requirements to get approved for finance. Your paperwork should include:

    • Completed application forms
    • A contract of sale between the vendor and purchaser. A copy must be provided by your bank
    • A receipt confirming the 10% deposit has been paid
    • An insurance quote for home and contents insurance. At Kina Bank we work with Panel Insurance
    6. Sign the legal documents

    Once you have formal approval from your bank, you will receive mortgage documents to sign. Return the following documents to your bank:

    1. The property valuation
    2. Insurance papers
    3. Letter of offer
    4. Transfer document
    5. Mortgage document

    Upon signing you can proceed to the settlement stage – congratulations!

    7. Take home the keys

    Put your feet up, sit back and relax! You’ve done all the hard work and deserve to enjoy your new home!

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