Ready to leave the nest? Fallen madly in love and need your own space?
Whatever your reason, home loans and the entire process can be very daunting and confusing for First Home Buyers, as there is so much info available, so many banks to choose from, so many loans, and there are government fees, conveyancers, auctions, contracts, the list goes on….
Let us guide you through the maze and explain things to you in simple easy to understand language without all the sales lingo, technical stuff or hype!
The first step is to sit down and do a budget so you know exactly what your expenses are. Please click here and complete our simple budget planner to calculate your living expenses
Then we can look at your income(s), your savings, your employment etc and provide you with an estimate of how much you can safely borrow and afford to repay.
Once this is done it is down to the nitty gritty and time to determine your goals, what kind of property appeals to you, what suburb, how much can you borrow, and how to go about it.
Depending on the Australian State you wish to purchase the property in, there may be First Home Owner Grants available, and they vary dramatically State by State so please contact us and we will explain what is available to you in your State.
Here are some Frequently Asked Questions from First Home Buyers
How much deposit do I need?
The minimum you will need is 5% of the purchase price of the property, plus you need extra to cover the State Government stamp duty etc depending on which State you are in
What are “genuine savings”?
If you intend to borrow more than 80% of the purchase price of the property, then you need to prove to the bank that your deposit is from genuine savings, which is money you have saved in your bank account for at least six months. It is okay to use money gifted from your parents, or cash from selling some of your other assets etc but you will still need to show you have saved a minimum of 3% of the purchase price yourself.
Can my parents help?
Depending on the Loan to Value Ratio you can use a cash gift from your parents to assist you with the deposit. Also some banks allow what is called a Family Pledge, this is where your parents’ home can be used to assist you in purchasing a home. Generally the bank will secure 20% of the loan required against your parents’ home, and the other 80% secured against the property you are purchasing. Once the 20% loan is paid off the bank will release the guarantee against your parents’ home. These loans can be tricky so call us for more details.
Further questions answered
Please click here for more information on loan terminology and jargon explained.
If you would like us to assess your eligibility or calculate your maximum borrowing power please complete the Needs Analysis form here and return it to us.