With so many different home loans on the market, finding a loan that is suitable for you as a first time home buyer is not as simple as it used to be, there is an enormous range of loans available on the market these days and finding the right loan can save you money, provide you with greater flexibility and peace of mind.
As a first time home buyer you can choose from a wide selection of home loan types, such as:
Basic Home Loans
Professional Package Home Loans
Fixed Rate Home Loans
Family Pledge / Guarantor Support Home Loans
Self Employed Home Loans
Low Doc Home Loans
Combination or Split Rate Home Loans
100% Offset Account Home Loans
Construction Home Loans
How Much Do I Need To Save For A Deposit?
The amount you need as a deposit will depend on the type of loan and the lender you select. Generally as a first time home buyer you will require a minimum of 5% of the property value.
What if I Don’t Have a Deposit?
Don’t have a deposit, a Family Pledge Guarantor supported home loan could help you to purchase your first property, using the equity of a family members property or investment property instead of a deposit.
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.
How Much Do I Need To Set Aside For Stamp Duty as a First Time Home Buyer?
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. In most states the first time home buyer generally doesn’t have to pay stamp duty.
What Other Expenses Will I Need To Pay?
As a rough guide, you should budget for between 1-2% of the purchase price, in addition to your deposit, to cover fees and charges. The balance may include;
- Building and pest reports
- Valuation fees
- Lenders mortgage insurance (LMI)
- Solicitors fees
- Utility connection fees? Phone / gas / electricity
- Council and water rates
- Removalist costs
Am I Eligible For The First Home Owners Grant?
This one-off grant is available in certain states for the first time home buyer 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 first time home buyer grant to be available.