Which Home Loan Is Right For Me?
With so many different loan products on the market, finding your first home loan is not as simple as it used to be. Many first home buyers have limited savings and rely on government grants or family gifts for a deposit. There is a range of options available to you that provide you with greater flexibility and a better chance of getting into your first home, some of our lenders have low deposit loans as little as 3% deposit required. We will also process your First Home Grant so it can be paid at settlement.
Through FinanceMe, we can specifically design a custom mortgage loan quote from the top three offers from our panel of lenders. FinanceMe will do the searching around for you! Our consultants use their expertise and experience in the home loan market coupled with a unique computer software program that enables us to compare hundreds of loans in a matter of minutes
Your First Home Owner Loan Quote Features Include:
- No Credit Check – get a free quote without an enquiry on your credit file
- Customized pricing setting out all terms & conditions of each lender
- You Choose from Top Three Offers
- Detailed costing of monthly repayments stamp duty, mortgage insurance and any other fees payable.
Product Matrix:
- Minimum Loan $100,000
- Maximum Loan Value (LVR) 97%* (with 3% genuine Savings)
- Maximum Loan Value (LVR) 95%* (without genuine Savings)
- Good Credit Required
- Stability in employment (12 months in same job or 2 years in same industry)
- Positive Asset Position excluding Contents & Superannuation (Assessor will take into account customer's age in comparison with their asset position and level of income)
- Principal & interest on high LVR loans
- Fixed or Variable
- Available for owner occupied only
- No Mortgage Insurance payable below 80% LVR
* What is Genuine Savings? Lenders like to see a borrowers' history of savings - normally the minimum savings with first home buyers is 3% of property value and Lenders like to see this saved over a minimum of 6 months
First Home Owners Grant – FHOG
The Federal Government introduced the FHOG in 2000 to assist First Home Buyers meet the cost of buying or building their first homes.
When introduced it was a non means-tested grant of $7,000. However the Rudd Government recently introduced a FHOG "Boost" as part of the package to "stimulate housing activity and give first home buyers a better chance in the housing market".
Effective immediately, first home buyers purchasing established homes will be entitled to a $14,000 FHOG (up from the previous amount of $7,000). For those who purchase a newly-constructed home an additional $14,000 will be available, taking their total grant to $21,000.
FHOG “Boost” was reviewed in the recent Federal Budget and will be available in full until 30 September 2009 and at a reduced rate until 31 December 2009
In some states additional bonuses and stamp duty concessions may be available.
First Home Buyer’s Frequently Asked Questions.
How Much Can I Borrow?
Am I Eligible For The First Home Owners Grant?
What Will My Repayments Be?
How Much Do I Need To Save For A Deposit?
How Much Do I Need To Set Aside For Stamp Duty?
What Other Expenses Will I Need To Pay Besides Mortgage & Stamp Duties?
How Do I Choose Which Home Is Best For Me?
How Much Can I Borrow?
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.
Am I Eligible For The First Home Owners Grant?
This one-off grant is available to First Home Buyers intending to live in the home they are buying. Basically, you are eligible if you are an Australian citizen or a permanent resident who is buying or building your first home in Australia and intend to occupy it as your principal place of residence within 12 months of settlement. Note that if you are purchasing the property in conjunction with others, they must also meet the same criteria for the grant to be available.
First home owners are only entitled to the full amount of the FHOG Boost if the contract is entered into on or after 14th October 2008 and before 30th September 2009. For contracts entered into from 1 October 2009 to 31 December 2009 they will have access to the Boost at a reduced rate.
What Will My Repayments Be?
It is one thing to work out how much you can borrow, but you need to know if you can afford the repayments.
How Much Do I Need To Save For A Deposit?
The amount you need as a deposit will depend on the type of home loan and the lender you select. Generally a first home buyer will require a minimum of 3% of the property value.
How Much Do I Need To Set Aside For Stamp Duty?
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 and what exemptions or concessions are available.
What Other Expenses Will I Need To Pay Besides Mortgage & Stamp Duties?
- Stamp Duty (depending on concessions available in your state)
- Building and pest reports
- Valuation fees
- Lenders mortgage insurance (LMI) above 80% LVR
- Solicitors fees
- Insurances
- Utility connection fees – phone/gas/electricity
- Council and water rates
- Removalist costs
How Do I Choose Which Home Is Best For Me?
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.
