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Buying your first home is one of the most exciting investments you will ever make. More important, it could be one of the biggest, so knowing where to begin when applying for a home loan can be a little daunting.
Through our First Home Buyers area we know and understand your position. We realise the importance of providing you the real inside advice helpful to your specific situation so you know and understand exactly every step.
As with most competitive markets there are so many options to choose from. We’re here to make it as easy for you as possible from, start through to finish and help guide you through the maze to unlocking your first home.
Borrowing Power & Repayments
The first step is to determine how much you can borrow, know what your options are and the repayments. Build your new repayments to your budget and get your pre-approval so your all ready to start finding your first home within your price range.
Costs
Being your first home it is vital you understand what costs are incurred upfront, ongoing and when you discharge your loan. Some fees can be capitalised and some must be paid with your deposit and or first homeowners grant.
Lender Mortgage Insurance (LMI)
LMI is a one off insurance premium fee payable to the borrower to indemnify the lender if in the event the borrower fails to repay their home loan or meet their contractual obligations. It is generally payable when you borrow more than 80 percent to the value of your purchase price or what the approved valuation comes in at due to the higher lend loans. The fee is generally calculated by the loan size and LVR and with some lenders can be capitalised to the loan to help reduce those upfront costs.
Savings History
Savings plays another important factor to lenders and it demonstrates your ability to meet over and above what you are already committed to. For 95 percent lend products where you only provide a 5 percent deposit you must ensure it derives from a minimum 6 months of genuine savings.
Deposit
5 percent deposit is still available to borrowers, but it must demonstrate genuine savings. Determining your deposit will certainly present more finance options.
Family Pledge or Guarantors
Understanding raising such deposits can propose some challenges. A family pledge otherwise known as pledging another security/property from parents is a great option to help reduce the upfront costs for first home buyers. Your loan is generally split into an 80 percent lend against your home and a 20 percent lend against your parents, saving you LMI fees of $5000 to $15,000 depending on your loan.
Things to consider?
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Borrowing Power & Repayments
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The first step is to determine how much you can borrow, know what your options are and the repayments. Build your new repayments to your budget and get your pre-approval so your all ready to start finding your first home within your price range.
|
|
Costs
|
Being your first home it is vital you understand what costs are incurred upfront, ongoing and when you discharge your loan. Some fees can be capitalised and some must be paid with your deposit and or first homeowners grant.
|
|
Lender Mortgage Insurance (LMI)
|
LMI is a one off insurance premium fee payable to the borrower to indemnify the lender if in the event the borrower fails to repay their home loan or meet their contractual obligations. It is generally payable when you borrow more than 80 percent to the value of your purchase price or what the approved valuation comes in at due to the higher lend loans. The fee is generally calculated by the loan size and LVR and with some lenders can be capitalised to the loan to help reduce those upfront costs.
|
|
Savings History
|
Savings plays another important factor to lenders and it demonstrates your ability to meet over and above what you are already committed to. For 95 percent lend products where you only provide a 5 percent deposit you must ensure it derives from a minimum 6 months of genuine savings.
|
|
Deposit
|
5 percent deposit is still available to borrowers, but it must demonstrate genuine savings. Determining your deposit will certainly present more finance options.
|
|
Family Pledge or Guarantors
|
Understanding raising such deposits can propose some challenges. A family pledge otherwise known as pledging another security/property from parents is a great option to help reduce the upfront costs for first home buyers. Your loan is generally split into an 80 percent lend against your home and a 20 percent lend against your parents, saving you LMI fees of $5000 to $15,000 depending on your loan
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First Home Owners Grant
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The First Home Owners Grant was introduced in Australia in 2000 to assist new home owners in buying or building their first home. It is a one-off $7,000 tax-free payment which can be used in-conjunction with your new home loan.
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Stamp Duty Concessions
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As a first homebuyer you get massive stamp duty concessions making it that one step closer to home ownership. Refer to www.osr.qld.gov.au or your state government for stamp duty concessions.
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What does this mean to you?
As with most competitive markets there are so many options to choose from. We’re here to make it as easy for you as possible from, start through to finish and help guide you through the maze to unlocking your first home and not only source you the right home loan, but ensure it fits within your budget and simple and easy to operate.
Contact us on 1300 30 96 90 for more information on how you can obtain finance for your first home.
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