When you’re ready to buy your first home, it’s important to keep your debt low. We recommend not taking out loans to pay for your deposit, especially if you don’t have a high income and a lot of extra money each month. You need to be able to handle all your payments, even if interest rates go up.
Most lenders want to see that you’ve saved at least 5% of the home’s price on your own over three months. This shows you can save money, help pay for your first home buyer home loan, and keep up with payments after you buy the house.
Remember, buying a home comes with extra costs, like Lenders Mortgage Insurance (LMI). These costs vary with different lenders. If you can’t pay the LMI right away, ask your lender if you can add it to your loan. Some lenders might look at your rental history for the past year to see if you can pay back the loan. If you’ve paid your rent on time and haven’t missed any payments, it could count instead of savings.
To avoid paying the LMI premium, try to get a better interest rate first. If your family, like your parents, are willing to use their home’s value to help you, that’s great. This kind of family support can really help.
Everyone buying a home has different needs, so you need personalised advice. That’s where the mortgage brokers at ZEP Finance come in to help.
What does it mean to be a first-time home buyer in Australia? It’s someone who has never bought a home before. If you’re aiming to be a first-time home buyer looking to get a first home buyer loan in Australia, there are a few steps you need to follow.
The most crucial step is saving for a deposit. Most lenders require you to have at least 20% of the home’s value as a deposit. You’ll also need to get pre-approved for a mortgage and then start house hunting within your budget.
When you’re ready to buy your first home, it’s important to keep your debt low. We recommend not taking out loans to pay for your deposit, especially if you don’t have a high income and a lot of extra money each month. You need to be able to handle all your payments, even if interest rates go up.
Most lenders want to see that you’ve saved at least 5% of the home’s price on your own over three months. This shows you can save money, help pay for your first home buyer home loan, and keep up with payments after you buy the house.
Remember, buying a home comes with extra costs, like Lenders Mortgage Insurance (LMI). These costs vary with different lenders. If you can’t pay the LMI right away, ask your lender if you can add it to your loan. Some lenders might look at your rental history for the past year to see if you can pay back the loan. If you’ve paid your rent on time and haven’t missed any payments, it could count instead of savings.
To avoid paying the LMI premium, try to get a better interest rate first. If your family, like your parents, are willing to use their home’s value to help you, that’s great. This kind of family support can really help.
Everyone buying a home has different needs, so you need personalised advice. That’s where the mortgage brokers at ZEP Finance come in to help.
If you’re buying your first home in Lennox Head, and want to secure a first time home buyer loan, you might think about going straight to your bank. This is a common choice for many first-timers who aren’t sure what a mortgage broker does.
However, when you work with a trusted mortgage broker for first home buyers, like our team here at ZEP Finance, you’ll see a lot of benefits. These can make buying your home easier and save you money. Here’s how a mortgage broker specialising in first home buyer home loans can be a great help:
Buying your first home is a big step, and it can feel overwhelming, especially when you think about the costs involved. But if you’re a first-time home buyer in Australia, especially in Queensland, you’re in luck because there’s extra help available. The government has set up various programs to support and encourage people who are buying their first home.
This national scheme assists first home buyers to purchase a home with a smaller deposit, sometimes as low as 5%, without needing to pay for Lender’s Mortgage Insurance.
This loan may be available to first home buyers who can afford to buy a home but are unable to secure private finance from a bank or building society.
Navigating the home-buying process can be stressful. A mortgage broker simplifies the process, reducing the stress associated with loan applications and approvals.
It’s important to note that the availability and specifics of these grants and schemes can change, so for the most accurate and current information, it’s best to consult directly with the Queensland Government or a qualified mortgage advisor.
The First Home Owner (New Homes) Grant (FHOG) is a one-off $10,000 grant provided by the NSW government to eligible first home buyers who purchase or build a new home. The grant is intended to reduce the upfront costs associated with buying a property.
Eligibility criteria for the FHOG:
Application process and requirements:
The First Home Buyers Assistance Scheme (FHBAS) provides concessions on transfer duty for eligible first home buyers purchasing an existing home, a new home, or vacant land to build on.
Eligibility criteria for the FHBAS:
Transfer duty exemptions and concessions for eligible first home buyers:
How to apply for the FHBAS:
The Shared Equity Home Buyer Helper (SEHBH) is a scheme that assists eligible first home buyers who would not be approved for a mortgage without additional support. The scheme provides a 40% equity contribution to the purchase of a property, allowing borrowers to reduce their mortgage loan amount and improve their affordability.
Eligibility criteria for the SEHBH:
How the scheme works and the benefits it offers:
Application process and requirements:
In addition to the FHB schemes mentioned above, there are a number of other financial assistance programs available to first home buyers in NSW. These include:
The NSW government offers a range of FHB schemes to help first home buyers purchase their first property. These schemes can provide financial assistance, tax concessions, and other support to make homeownership more affordable and accessible. It is important to seek advice from a mortgage broker to understand which FHB scheme is most suitable for your individual circumstances.
Another scheme that first home buyers can take advantage of is the First Home Guarantee Scheme. The First Home Guarantee Scheme in Australia is a significant initiative by the Australian Government, designed to assist first home buyers in entering the property market. This scheme allows eligible individuals to purchase their first home with a lower deposit, reducing the financial burden often associated with the initial stages of buying a property.
Participants in the scheme benefit from potentially saving thousands of dollars in Lenders Mortgage Insurance, a cost usually incurred when a deposit is less than 20% of the property’s value. Additionally, the scheme can be used in conjunction with other government programs like the First Home Owner Grant, further easing the financial burden.
The Australian Government, through the scheme, guarantees up to 15% of the value of the property, which means that buyers can secure a home loan with a smaller deposit. This guarantee is not a cash payment or a deposit for your home loan but serves as a security for the loan.
The scheme covers various property types, including new and existing houses, apartments, townhouses, and vacant land for building. However, there are price caps on the value of the property you can purchase under the scheme, which vary depending on the location within the country.
To apply, prospective buyers should approach a participating lender or ask for the help of a mortgage broker. The application process involves providing proof of income, such as recent payslips and the previous year’s Notice of Assessment from the Australian Taxation Office, along with other standard loan application documents.
The First Home Guarantee Scheme is a valuable initiative for those looking to enter the property market. By reducing the deposit requirement and eliminating the need for Lenders Mortgage Insurance, it makes homeownership more accessible and affordable. Prospective buyers should research thoroughly and consult with participating lenders to understand how they can benefit from this scheme.
We have been servicing happy clients for more than 15 years and we can’t wait to help you achieve your property and financial goals.
A first-time home buyer loan is a type of mortgage that is specifically designed for people who are buying their first home.
There are a few different things that set first-time home buyer loans apart from other types of mortgages. For example, many first-time home buyer loans have lower interest rates than other types of mortgages. They may also come with more flexible terms, which can make it easier for you to afford your monthly payments.
You can go directly to a bank or a lender, but we recommend contacting a mortgage broker first. Mortgage brokers have access to a number of different lenders, and they will be able to help you find the best deal.
There’s a few things you need to know before you start looking at properties. Firstly, the upfront costs of buying a property can be quite expensive, so you’ll need to save up a decent deposit. You’ll also need to pay stamp duty on the purchase price of the property, and there may be other costs such as legal fees and mortgage establishment fees.
Before you start looking at properties, it’s important to work out what you can afford. Your borrowing power is based on your income and your borrowing capacity (the maximum amount of money you can borrow). To find out how much you can borrow, speak to a mortgage broker.
As a first home buyer in Australia, you will have access to a range of government assistance programs that can make purchasing your first home more affordable. Depending on your financial situation, you may be able to take out a low-interest loan from the government or even receive a grant to help you get started.
Speak with your bank or a local mortgage broker to find out more about the programs available in your area and what you may be eligible for.
The minimum deposit is 20% to avoid paying Lenders Mortgage Insurance, but it’s always best to save as much as you can for a deposit to avoid high interest rates. You also need to account for things like homeowner’s insurance, property taxes, and maintenance costs. If you’re not sure how much you can afford, you can use our calculators. You can also consult with our mortgage brokers for a more comprehensive discussion.
The guarantor must be willing to cosign the loan and must have good credit. The cosigner is responsible for the debt if the original borrower does not repay it. This arrangement can be helpful because it allows the borrower to get approved for a loan and it also helps the lender because it reduces their risk.
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