Congratulations on beginning the first home buyer journey.
There are endless options when it comes to purchasing your first property. Make sure you attend as many open homes as possible and do plenty of research to narrow down your property and location requirements. It may help to write a list of all the things your ideal property will have i.e how many bedrooms and bathrooms you need if you need a garage and how close you need to be to local schools or work. It can difficult to raise the deposit required, LMI ( lenders mortgage insurance) allows you to borrow with less deposit but it can be expensive. Otherwise there maybe an option to use a parent or sibling as a guarantor. There’s plenty to consider and the experience can be very exciting, however, if you don’t understand the process, it can also be a little daunting. That’s where we come in. We can help you by:
- Explaining all the extra costs, including; stamp duty, council rates and other hidden fees.
- Identifying ways to save for your deposit i.e Government Saver Accounts
- Identifying grants and benefits available to you i.e First Home Owner Grant
- Estimating your repayments
- And assisting with budgeting your budget to prevent any unwanted surprises.
Contact us today to see how we can help you make your dream of first home ownership a reality.
What do I need to get a first home buyer loan
Ideally, you need the following – but there are exceptions to every rule:
- stable employment history – same job for 6 months or 2 years in the same field
- sufficient income to meet the repayments
- equity made up of a deposit or guarantee:
- 5% genuine saving plus costs such as stamp duty and mortgage insurance, or
- sufficient funds to keep the loan below 95% of the purchase price, and evidence of 6 months rental payments paid to an agent, or
- sufficient deposit to keep the loan below 90% of the purchase price, funds can be any source including gifts, or
- a family member prepared to be a guarantor and offer another property as additional security for the loan
LMI If your deposit is below 20% of the value of the property, you will be required to pay Lenders Mortgage Insurance – LMI. This insurance covers the lender if you should default – don’t think that this lets you off the hook because the insurance company then chases you for the money. Click here for more information on LMI.