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First
Home Buyers
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The stress-free guide to buying your first
home.
Which Home Loan Is Right
For Me?
With so many different loan
products on the market, finding a home loan is not as simple
as it used to be. There is a range of options available to
you that may save you money, provide you with greater flexibility
and peace of mind.
Finance Allsorts consultants use their expertise and experience
in the home loan market coupled with a unique computer software
programme that enables them to compare hundreds of loans in
a matter of minutes. Our consultants will then be able to
provide you with a short list of loans that are both competitive
and suitable – simplifying the loan selection process.
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First
Home Owners Grant ? FHOG
The Federal Government introduced the First Home Owners Grant (FHOG) in 2000 to assist First Home Buyers meet the cost of buying or building their first homes.
It is a non means-tested grant of $7,000 that can even be used to form part of the deposit on your first home purchase.
In Victoria there is an additional First Home Bonus (until June 30, 2009) to the value of:
- $3,000 for an established property
- $5,000 for a new property
provided the property’s value does not exceed $500,000
Finance Allsorts consultants can help you
to access the FHOG.
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Am
I Eligible For The First Home Owners Grant?
This one-off Government grant of $7,000 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.
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What
about the First Home Bonus (VIC only)?
In Victoria there is an additional First Home Bonus (until June 30, 2009) to the value of:
- $3,000 for an established property
- $5,000 for a new property
provided the property’s value does not exceed $500,000
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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 you will require some extra funds to pay the additional costs associated with buying a property and applying for a home loan, like:
- Lenders Mortgage Insurance (LMI)
- Government fees (stamp duties etc)
Many Lenders still look favourably on applicants who have genuine savings as a deposit, though many Lenders no longer require you to have a saved deposit. The amount you pay for Lenders Mortgage Insurance (LMI), if applicable, will vary depending on the source of your deposit.
Sources of your deposit can be from:
- Savings
- Gifts
- Sale of assets (cars, boats, shares, managed funds etc)
- Personal loans
- First Home Owners Grant (FHOG)
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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.
Stamp duty is paid on settlement day of your property and will come out of your loan proceeds or from additional funds that you provide. Your Solicitor/Conveyancer will finalise this with you a week or two prior to settlement.
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What
Other Expenses Will I Need To Pay Besides
Government Fees & Stamp Duties?
As a rough guide, you
should budget for between 5-7% of the
purchase price, in addition to your deposit,
to cover fees and charges. While mortgage
and stamp duties will make up the bulk
of this 5-7%, the balance may include;
* Building and pest
reports
* Valuation fees
* Lenders mortgage insurance (LMI)
* Solicitors fees
* Insurances
* Utility connection fees - phone/gas/electricity
* Council and water rates
* Removalist costs
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What Should I Do Now?
You can make an appointment with a Finance Allsorts consultant by calling 1300 88 74 85, so that all your questions can be answered and we can assist in finding you a loan that suits your particular circumstance now, while considering your future too.
The appointment can be at a day, time and place that suits you.
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