THE DREAM OF OWNING YOUR OWN HOME CAN BECOME A REALITY - EVEN ON ONE INCOME. MONEY COACH GAY CURTIS OUTLINES THE MOST IMPORTANT STEPS.

Nothing beats the thrill of moving into your very own home. Quite aside from relishing the freedom to paint walls, install shelves and generally reign supreme as queen of your castle, home ownership is a visible representation of stability, security and financial success. In a nutshell, it feels good on every level - a true measure of your achievement.

One thing that can dampen your excitement is the prospect of a daunting financial commitment, especially if you plan to enter the property market on your own. Remember, though, a mortgage is, in effect, a way of saving money and you can eventually use the equity in your home to further invest. Who knows? Your first step onto the property market may take you places you've never dreamed of before. The following are some tips to getting a strong foothold.

Do your homework
Work out what you want in a home - what it will look like, where it is located and what can you afford? Now, write all this down! Be patient and flexible, and consider areas slightly outside your preferred location. If you aren't willing to compromise on location, consider scaling down your dwelling from a house to a unit, for instance.

Save for a deposit
If you borrow from a bank you need to save a deposit of at least 20 percent, or you'll be required to take out loan insurance. You also need to save another 5-10 percent of the price of the home to cover stamp duty, legal and conveyancing fees and building inspections.
Remember, first-time homebuyers qualify for a grant from the government of $7,000 and stamp duty exemptions in most states.

Choose the best deal for you
With so many lenders and loan products touting for your business, it's difficult to know where to begin. A broker can do the legwork for you by finding the loan and negotiating with the lending institution. You don't pay directly for the service of a broker - they receive their commission from the lending institution. Be aware that this commission is factored into loan pricing and reflected in the lender's interest rates and fees, so don't just rely on a broker's advice. Do your own homework as well, and then compare prices.

Make sure you look at the comparison rate when researching home loans as the advertised rates can be misleading. A low interest rate can save tens of thousands of dollars in the long run, and is one of the most important factors to consider.

Set a financial goal
Having a goal, such as paying off a sizeable portion of the loan before you start a family, can help you own your home sooner. Write down your goal and put a timeframe against it to keep you focused. Review that goal regularly and be mindful that setbacks may happen.

The following websites are useful for more information:

* Find information and brokers in your area at The Mortgage & Finance Association of Australia (MFAA) website www.mfaa.com.au
* Compare options for most home loans at www.infochoice.com.au or www.cannex.com.au

Gay Curtis is a money coach and author of Smart Girls' Guide to Money and Smart Couples' Guide to Money (Wrightbooks).

Disclaimer
The information provided here is general in nature. It should not be relied on as the basis for any decision to take action or not take action. Readers should obtain professional advice where appropriate before making any such decision.