While the process can be challenging, and at times, seem unachievable, the decision to purchase your first home is one that will set you up for the future. The important thing to remember is that you don’t have to navigate the unchartered territory on your own.
From making the decision to purchase, to finding the right loan, saving for your deposit and finding and securing the perfect home, we have a range of articles that can help you in your frst home buyer journey, no matter what stage of the home buying proccess you are at.
Being able to show a record of good saving habits will aid in getting your loan approved.
With the help of a guarantor, a loan can be secured without a deposit.
Most lenders charge a home loan application fee. This can range from loan to loan.
Traditionally you need at least a 20 per cent deposit to get a home loan. However, the amount you need to save is dependent on the loan to value ratio (LVR). LVR is the loan amount divided by the value of the property. For example, if you’re looking at a property with a purchase price of $200,000. If you have a deposit of $40,000, your LVR is 80% (160k/200k).
A guarantor can also volunteer their home equity as security for your loan. In the event that you default on your loan, your guarantor would wear the responsibility of paying off the loan.
Stamp duty is a charge which is applied by state governments in Australia on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for in addition to your loan deposit. The amount of stamp duty you are required to pay differs in each state
The key to increasing your borrowing capacity is to reduce your debt. One of the easiest ways to achieve this is to lower your credit card balance, reducing the perceived risk to lenders.
You may be able to apply for a deposit guarantee (for up to 48 months). This is a second loan that covers the deposit.
Purchasing your first home is a huge milestone and cause for much deserved celebration. To ensure that achieving this milestone is as smooth and enjoyable an experience as possible, we’ve outlined the steps that need to be taken.
Why meet with multiple lenders when your broker can do it all for you.
Brokers have access to a wide range of lenders and products.
Secure a loan that is suitable for you both now and into the future.