First Home Buyers Loans....

 

Before considering purchasing your first home you will need to get your finances in order to see if you can afford or more importantly qualify for a loan.

A qualified mortgage expert can quickly assesses if you are eligible to apply for a loan with a quick phone conversation in less than 5 minutes. They will save you a lot of time and hassle rather than doing your research online which often provides very limited and sometime inaccurate information. You will get information on the following;

- How much you can borrow

- The deposit required

- How much you will receive for the First Home Buyers Grant

- Various methods of how to use your families home as a deposit

 

Enquire Here

 

What you need to know when applying for finance...

 

Your Deposit

The deposit required for your first home will vary significantly from lender to lender. The best and quickest way to find out this information is to contact us.

There is no one set requirement for obtaining a deposit but here are the minimum requirements;

- If you intend to borrow more than 90% of the properties value you will need to have a minimum of 3% genuine

savings for at least 3 months. Genuine Savings is where you need to provide evidence that you have saved the deposit over a 3 month period.

- If you borrow less than 90% there are some lenders that do not require that you have genuine savings but you

must show evidence of a deposit.

- You can use the equity in your parents home as a deposit. Known as "Family Pledge or Family Guarantee." This

is where your parents or a close family member puts their home up as security in the place of a deposit.

- The government has specialised savings programs for first home buyers. In a nutshell first home buyers need to

open a savings account with a registered institution such as a bank, credit union and or building society. The first home buyer will receive the following benefits;

 

1. Bonus money from the Government. The government will contribute $170 for every $1,000 you save for each financial year up to the value of $5,000. Therefore, if you save $5,000 the government will contribute $850.

 

2. Interest made in the savings account will only be taxed at 15% instead of your marginal tax rate.

To find out more about the First Home Saver Accounts you can visit the Australian Taxation Office Website

 

First Home Owners Grant - How Much Will You Receive?

The First Home Owners Grant varies from State to State. Each State and offers different concessions and additional funds on top of the governments $7,000 grant. To find exactly what you are entitled to it is best to visit the State Revenue Office relevant to the state you are purchasing. These links can be found below;

ACT

New South Wales

Northern Territory

Queensland

South Australia

Tasmania

Victoria

Western Australia

 

The Cost Of Purchasing a Home

Below is a summary of costs you need to consider when purchasing your first home. We also have a online calculator that can help you with total property purchase costs.

 

Building and Pest Inspection

Cost between $200 and $500. This is essential for finding out if there are going to be additional costs after you have made the purchase. A building inspection might find out the the building might needs to be electrically rewired, re-stumped or discover any structural problems which can be costly. A  pest inspection may uncover pests such as termites that may have structurally impaired the building.

 

Home Loans

Home loan fees vary widely from lender to lender. A list if these is shown below;

- Establishment Fees (Entry Fees)  - between $0 and $1,000

- Lenders Mortgage Insurance - between $0 and up to 4% of the purchase price. This depends on the amount

   borrowed and the amount borrowed against the property value.

To find out which lenders offer low  entry fees and lenders mortgage insurance it is best to submit a mortgage quote or contact us.

 

Government Duties, Fees and Charges

This varies from state to state and it is best to contact the State Revenue Office in the state you reside or contact one of our Mortgage Experts. Here is a summary of the fees and charges you may expect to pay;

- Stamp Duty Land Transfer

- Mortgage Stamp Duty

- Land Transfer Registration Fee

- Mortgage Registration Fee

Typically these fees account between 4 and 5 percent of the purchase price; however, some first home buyers receive an exemption from most of these duties and fees and the cost is usually under $1,000

 

Legal Fees

You will most likely employ a solicitor or conveyancer to help you settle your first home. This can cost any thing from $500 to $2,000 depending on the state you reside and the type of representation.

 

Other Costs You May Need to Consider

- Moving fees

- Utility connection or transfer fees to connect the telephone, gas and electricity

- Purchasing furniture and house hold utensils

- Renovations if required

- House and contents insurance

Try our purchase costs calculator to help with calculating the costs of purchasing your first home.

 

How We can Help?

The easiest way to find out the costs of purchasing a home is to consult a mortgage professional. They will have all the state government duties and fees on hand as well as various bank and lender fees. To contact your nearest mortgage expert click the button below

 

First Home Buyer Help