FIRST HOME BUYER LOAN

Buying your first home is a great milestone and an exciting achievement in your life. However, it is essential to get the right advice on the whole process of home buying and loan approval. A good understanding of different aspects like how much you can afford, how much deposit you need, what the fees are and how the process works is also important, therefore we are providing the guidance of the step by step process.

We would tell you what to consider when you are looking to get your first home loan, and how having a mortgage broker onside could make your buying journey and loan process easy and beneficial.

It would be ideal to tackle the whole process in individual stages, which includes making the decision to purchase, searching the right loan, saving for your deposit and finding your dream home. Through planning the whole process and taking gradual steps, you can achieve your financial objectives.

How much can I borrow?

Generally one of the first few things you need to know when purchasing your first home is your “borrowing capacity”. As your mortgage adviser, we will look at your financial objectives, your individual financial circumstances, your income and expenses and then based on our assessment we will discuss in detail all your loan options and take you through the whole process in a systematic manner.

How much deposit do I need?

Another important thing you want to know is how much deposit do I need? Based on the lender and the type of loan product you choose, minimum deposit required can be in the range of 3% to 10% of the property value.

Depends on the LVR (Loan to Value Ratio) and different lenders’ policies, you may also need to provide proof of 5% genuine savings via bank statements over a minimum of 3 months period. Besides savings in bank account, you can also show 5% genuine savings through other means like equity in real estate, shares and managed funds held for 3 months and even 12 months rental history with some lenders.

It is important while calculating the total cost to buy your first home, ensure that you included Government stamp duties and other fees associated with the purchase, which could be around 4% to 6% of the property price but need not be from genuine savings. If you are eligible, the FHOG (First Home Owner Grant) may assist towards these costs.

Government Grants:

First Home Owner Grant (FHOG) introduced by the government is to help first home buyers. However, it is different in different states. In South Australia, FHOG of up to $15,000 is available for first home buyers for buying or constructing a new home. The grant is only available for a new home having a market value equal to or less than $575,000 and that to be used as your principle place of residence.

It will be granted at settlement for the purchase of a new home. In case of building, it will be paid on the first construction progress payment. If you are owner builder, you will receive the grant at completion/occupancy stage.

You can only lodge FHOG application with an approved FHOG participant / lender, in case of buying or building your home. We will assist you to complete and lodge FHOG application with the relevant lender or RevenueSA.
 

Why using a mortgage broker is the smart way to go:

  • We provide the most suitable loan option based on your financial objectives and circumstances.
  • We work with multiple lenders and having hundreds of product options. 

  • We may accomplish a better outcome for your financing needs.
  • Our aim is to save you time and stress and get things moving as quickly as possible.

Can we help you?

If you are looking for a first home buyer loan, please contact us to make an appointment for a free no obligation consultation. Contact us