First Home Buyer

Questions & Answers

The amount you're able to borrow depends on your personal and financial circumstances and how much risk the bank is willing to take on. A bank will consider how much money you earn, how much debt you already have, how much your monthly living expenses are and what assets you own.

Generally, banks will allow you to borrow up to 80% of the value of the property. However, if you qualify for the first home deposit scheme, you may be eligible to borrow up to 90% of the purchase price.

First Home Loan Deposit Scheme is a government initiative to support first home buyers purchasing their home sooner. Usually, First Home Buyers with less than 20% of their deposit need to pay a fee (Lenders Mortgage Insurance). Under the scheme, eligible First Home Buyers can purchase with a deposit as little as 5%. This is because the government guarantees to a participating lender up to 15% of the value of the property purchased

The first home owner grant is a one-off payment of $10,000 to help you save some money on your mortgage. To be eligible for the first home owner grant, you must be:

  • Over the age of 18
  • An Australian citizen or permanent resident
  • You or your spouse must not have owned a home in Australia or have previously received
  • You will need to live in your first home for at least six months within 12 months of buying your home

Still confused? Speak to one of our brokers to see if you are eligible for the first home owner grant.

The first home super saver scheme allows you to save for your first home within your super fund. This will allow you to save much faster with the concessional tax treatment of your super.

If you are eligible for the first home super saver scheme, you are able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home. You can then apply for your contributions to be released to help you with your purchase.

To be eligible, you must:

  • Be over the age of 18
  • Have never owned a property in Australia
  • Have not previously requested for a first home saver scheme release

Still confused? Speak to one of our brokers to see if you are eligible for the first home owner grant.

The deposit amount required varies depending on the situation. The absolute lowest requirement is 5%, subject to the bank's lending criteria. Stamp duty may also be applicable if you are not a first home buyer. Deposit requirements are based on your purpose of the loan - investment loans usually need 10% deposit whilst owner occupied are 5%. Please note that there are other costs applicable such as lenders mortgage insurance, stamp duty, conveyancing, removalist etc.

Yes, a home loan can be taken jointly. When you are considering co-owning a property, you must also consider who is going to co-own the property and how it will be co-owned. Typically, there are two structures for co-ownership - joint tenancy and tenants in common.

  • Joint tenants will own an equal share of the property. If you elect for joint tenancy, if one party dies, the surviving tenant(s) will absorb their share.
  • Tenants in common can have unequal distribution of ownership. The difference is that each owner can leave their interest in the property to a beneficiary through their will rather than passing their ownership to the surviving tenant(s).

Fixed loans have a period of time whereby the interest rate for your repayments will be 'locked in' during the fixed-interest term. This enables you to budget more effectively as repayments will remain constant and allow you to secure low interest rates without the risk of them rising. Note that there is a fee to lock in your interest rate which varies from lender to lender.

Variable home loans have an interest rate that moves with the market. These loans often have smaller fees than fixed but carry more risk for the individual taking out the loan as the interest rate may increase in the future. An increase in the interest rate will increase the monthly repayments on your home loan.

To better understand which product is right for you, please speak to a mortgage broker or financial advisor so that they can assist you based on your personal preferences and financial circumstances

A comparison rate helps you identify the true cost of a loan and compare loans and services offered by different lenders. It provides you with a more accurate representation by taking into consideration the additional costs that come with taking out a loan such as the loan approval fee and any up front or ongoing fees.

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