Becoming a First Home buyer
It’s a significant decision, so having someone to guide you through it is beneficial.
Purchasing your first home is an exciting yet significant step that comes with a slew of concerns and considerations.The first important concern is how much money you can borrow and how much you’ll have to pay back.
That’s where we come in; we’ll take care of the research for you.We can compare home loans from Australia’s top lending institutions across a range of options.
You may also be eligible for a first-time home buyer award because you’re a first-time buyer.This award may be given to Australian citizens or permanent residents who want to buy or build their first house within 12 months of settling in Australia.Because award conditions differ by state, contact us to learn more about your state’s eligibility requirements and how much grant money you might be eligible for.
We’ll also communicate with the lender.It’s our responsibility to do the legwork so you can concentrate on finding the perfect property.We’ll be with you every step of the way, from application to approval, to help you understand the home loan process.
Frequently Asked Questions for First-Time Home Buyers
When it comes to money and borrowing, we’re all different.Please contact us right away so that we can assist you with calculations depending on your specific circumstances.
Our loan kinds and features tutorials will help you understand the various options available.There are hundreds of various house loans to choose from, so contact us right away.
Usually between 5% and 10% of the property’s value, which you pay when you sign a contract of sale.Please contact us to discuss your deposit alternatives.You might be able to take out a loan against the equity in your current house or a rental property.
Most lenders allow you to choose from a variety of repayment choices to fit your pay cycle.Instead of monthly payments, aim for weekly or fortnightly ones, as you will make more payments in a year, reducing your loan’s cost and length.
When purchasing a home, there are a variety of fees and charges to consider.To assist you avoid any unpleasant shocks, below is a list of common costs:
- Stamp duty — This is the most important one.By comparison, all other expenses are minor.Stamp duty rates differ between states and territories, and they are also affected by the value of the property you are purchasing.It’s also possible that you’ll have to pay stamp duty on the mortgage itself.Visit our Stamp Duty Calculator to get an estimate of your potential stamp duty charge.
- Legal/conveyancing fees — These expenses, which range from $1,000 to $1500, cover all legal formalities related to your property purchase, including title searches.
- Building inspection — Before you buy the house, get it inspected by a trained professional, such as a structural engineer.Your contract of sale should include a clause requiring a building inspection, so that if there are any structural issues, you may back out of the deal without incurring major financial penalties.Depending on the size of the property, a building inspection and report might cost up to $1,000.This inspection is normally arranged by your conveyancer, and you will usually pay for it at settlement as part of their overall charge (in addition to the conveyancing fees).
- Pest inspection — It’s also a good idea to do this before buying a house to make sure it’s clear of issues like white ants.Your contract of sale should include a pest inspection clause, so if any unwelcome crawlies are discovered, you may be able to back out of the deal without incurring substantial financial penalties.Depending on the size of the property, budget up to $500.This inspection may be arranged by your real estate agent or conveyancer, and you will normally pay for it as part of their final charge at closing (in addition to the conveyancing fees).
- Lender costs — Most lenders demand establishment fees in addition to administrative fees to assist pay the costs of their own assessment.
We will inform you of your lender’s fees, but budget between $600 and $800. - Moving costs — Remember to account for the expense of a removalist if you intend to use one.
- Mortgage Insurance costs —If you borrow more than 80% of the property’s purchase price, you’ll have to pay Lender Mortgage Insurance.
You might also think about getting Mortgage Protection Insurance.Regular strata fees must be paid if you purchase a strata title. - Ongoing costs — Along with regular loan repayments, you’ll need to factor in council and water charges.It’s also vital to think about building and contents insurance.To cover the loan, your lender will most likely want a minimum sum insured for the building.
