Bringing the Excitement back for First Home Buyers!
With so many different loan products on the market, finding a home loan can be a pretty overwhelming concept. But finding the right loan doesn’t have to be difficult! We’re here to help you at every step, making the process easy, and saving you time and energy.
There so many options available for first home buyers, but which ones are right for you? At Loan Wize, we use our expertise and experience in the home loan market to compare hundreds of loans in a matter of minutes.
We then provide you with a great home loan recommendation that is both competitive and suits you perfectly, simplifying the selection process along the way.
First Home Owner Grants
First Home Owners may also be able to take advantage of various state government grants for the purchase of an existing or new home, Stamp Duty exemptions, and other additional incentives to purchase their first home. These vary considerably between states, so the best idea is to speak to one of Professional Lending Specialist to find out if there is any Government Grant or incentive in your state. In some cases these incentives can even be used to assist with your deposit funds.
Lenders Mortgage Insurance and Genuine Savings
Many First Home Owners have limited deposit funds and are looking to purchase a property with the minimum amount of deposit possible. If this is you, then it may be necessary to have Lenders Mortgage Insurance (if you need to borrow more than 80% of the purchase price). One of the typical requirements for Lenders Mortgage Insurance is Genuine savings, which is where you can prove that you have had your deposit funds in your account for more than 3 months (6 months in some cases).
It is possible where you have a gifted deposit that you may qualify for an exemption on this policy, provided you have been renting consistently and your real estate agent will vouch for you. Speak to one of Professional Lending Specialist about whether this policy will be available to you.
How Much deposit will I need?
This is one of the most frequently asked question we hear, and there is no one answer that is right for everyone. There are so many factors to take into account in regards to your deposit (ie is it genuine savings or not), whether you are building or buying an established property, and even your employment history. You may even be able to use the First Home Owners Grant as a deposit as well. To find out more though, we would need to discuss your personal situation.
It pays to do your research.
Buying a property is likely to be one of the biggest investments you’ll ever make. And as it’s an investment for the long term, it’s wise to make decisions with your head and not your heart. We have access to property market data and information that can help you make an informed decision about the capital growth potential of any property you wish to purchase. We also have tips on what to look for in a new property, so you can be confident you’ve done your homework before buying your first home.
First Home Owners Frequently Asked Questions.
How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income and what expense commitments you have. It will also vary from lender to lender.
It is one thing to work out how much you can borrow, but you need to know if you can afford the repayments.
The amount you need as a deposit will depend on the type of home loan and the lender you select. Generally you will require a minimum of 5% of the property value, however in many cases you may require even more.
Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory the property is situated in. In some states, Stamp Duty is waived for First home Buyers to help reduce some of the costs of purchasing your first home.
As a rough guide, you should budget for between 5-7% of the purchase price, in addition to your deposit, to cover fees and charges. While mortgage and stamp duties will make up the bulk of this 5-7%, the balance may include;
– Building and pest reports
– Valuation fees
– Lenders mortgage insurance (LMI)
– Solicitors fees
– Utility connection fees – phone/gas/electricity
– Council and water rates
– Removalist costs
When deciding on the area to live in, apart from considering proximity to family, friends and work commitments, you will obviously need to think about prices. Prices will vary greatly from suburb to suburb.
To help you decide on the right home for you, Loan Wize consultants can arrange for a free report on the area you are interested in.
You can make an appointment with a Loan Wize consultant by calling 07 5443 6522 or 1300 LOANWIZE.