First home buyers can successfully buy their first home with the guidance of a local Mortgage Broker.
Buying your first home is both an exciting and rewarding experience for the first time home buyer. It can also be stressful for the first time home buyer.
With the guidance of your local Homeloans Plus professional mortgage broker, the process of applying for your first home buyers loan will be a simple and effortless experience.
Your Homeloans Plus Mortgage Broker will guide you step by step with options to suit your personal needs and information to help you make the right decisions about purchasing your first home, leaving you valuable time to find the property of your dreams.
If you are a first home buyer who does not know where to start, let us guide you with information about financing your first home.
First home buyers may find certain aspects of purchasing their first home a bit daunting but keep in mind with the professional guidance of a mortgage broker can make the entire process that much easier.
Being a first home buyer the first and most vital step you need to take before you start looking for your dream home is to contact Jeff at Homeloans Plus, Jeff will carefully go over your finances to see just how much you can afford to service a mortgage.
As a first home buyer having a 20% deposit to buy your first home is not always possible, if you do have a large deposit that is great because you will have access to loan products with lower repayments and better rates.
However not everybody is able to come up with such a large deposit to buy their first home.
If you do not have a large deposit here are some ways to get a home loan to buy your first home.
A guarantor is someone with an existing property who provides additional security for your home loan.
The guarantor is usually a close relative (Mum and Dad) who uses the equity in their own property as security for your first home buyers loan.
A guarantor loan can also be used to avoid paying lenders mortgage insurance.
A gifted fund is another option for first home buyers to get into the property market. A gifted fund can be from an immediate family member or extended family member.
Usually, the lender will request a gift letter stating that the funds have been gifted to you unconditionally and without expectation of repayment.
If you do decide to use gifted funds as part of your deposit the lender would still like to see that you can discipline yourself to keep up to date with your loan repayments, so they may ask for evidence of 5% genuine savings and your rental history.
Proving to a lender that you have a regular savings plan is another thing to keep in mind when applying for your first home.
If you want to borrow 90% or more of a property value, you will need to show the lender that you have a least 5% of the property’s value in genuine savings.
Lenders consider the following as genuine savings
The first home guarantee is a scheme designed to assist first home buyers to buy a property with only a 5% deposit, the government guarantees the remaining 15% which gives the lenders security to approve first home buyers without having to charge lenders mortgage Insurance.
This scheme was previously known as the first home loan Deposit Scheme.
To be eligible for the scheme applicants must be
The scheme can be used for
First Home Owners Grants are available Australia wide, however each state and territory has differing eligibility requirements and grants .
To check to see if you are eligible for the Australian Governments first time home buyer grants follow the link for your relevant state.
New South Wales: NSW of State Revenue
Queensland: QLD Government
Northern Territory: Northern Territory Government - Department of Treasury & Finance
Tasmania: State Revenue Office of Tasmania
South Australia: RevenueSA - Department of Treasury & Finance
Western Australia: Department of Finance
Victoria: State Revenue Office
ACT: ACT Revenue Office
If your a first home buyer and would like to talk to us about getting you into your first home, please use the contact form below or alternatively give us a call.
All content is general in nature. Before undertaking any financial decision, please obtain personal financial advice that is tailored to your situation and is documented in our credit guide.
Jeffrey Parker is an authorised credit representative (Credit Representative Number 394045) of Custom Equity Group Pty Ltd (Australian Credit Licence Number 383666).
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