First home buyers
With interest rates falling and property prices coming down, first home buyers are in the best buying position they have ever been in.
First home buyer grants – boost extended
The boost to the First Home Owners Grant has been extended until December 31, 2009 as part of the Federal Budget. From June 30 until September 30, the boost will continue at the full $14,000 for the purchase of existing properties and $21,000 for the purchase of newly constructed properties. Between October 1 and December 31, the boost will be halved to $10,500 for existing properties and $14,000 for newly constructed properties.
There are also additional grants and concessions available for first home buyers in most states. See Loan Market’s first home buyer benefits by state summary for further information.
Considerations for first home buyers
As a first home buyer, you will need to consider:
- what federal and state grants are available to you as a first home buyer
- suitable home loans for first home buyers
- the size of your deposit and where you will source this from
- the fees and charges associated with purchasing a property
- undertaking thorough research on the property market
- finding a good mortgage broker, accountant, financial planner and solicitor
First home buyer help & home loan pre-approval
Your local Loan Market mortgage broker can help you find the right home loan, get home loan pre-approval, determine your eligibilty for the first home buyer’s grants and even help you complete paperwork. Simply fill in the form on this page or call at any time on 13 LOAN or or direct on +61 2 9249 3739 and we will contact you within 2 business hours.
Home Loans for first home buyers
There are a number types of home loans particularly suited to or advertised as suitable for first home buyers, including:
- introductory or honeymoon rate home loans
- limited guarantor (family pledge, equity guarantee) home loans; and
- low or no deposit home loans.
These loans are not the only types available for first home buyers, you will also be able to choose from a range of standard residential home loans.
How much deposit do I need to purchase my first home?
Traditionally a 20% deposit was required in order to secure a home loan, leaving many first home buyers in today’s market under the impression they need to have saved a deposit before they can secure a home loan, but flexible bank lending policies mean there are now also a number of alternatives and supplements to having the cash in the bank already. Options for sourcing the deposit you need, include:
- Traditional savings
- Gifted money
- Equity or guarantees from family members
- First Home Owners Grant
- First Home Saver Deposit Scheme
- ‘No deposit’ home loans
Fees and charges for first home loans
There are a range of fees and charges relating to first home loans, including bank and lender charges, government and statutory charges and conveyancing fees. For a complete overview of fees and charges associated with your home loan, talk to your mortgage broker.
Grants, savings schemes and subsidies
First home buyers may be eligible to receive a range of federal and state-based grants and subsidies designed to help reduce the costs associated with the purchase of a first home. These include the federal government’s First Home Owners Grant and stamp duty discounts.
The federal government has also recently introduced a special savings initiative for first home buyers, the First Home Saver Scheme. The scheme, offered in addition to the First Home Owners’ Grant and any state-based first home buyer grants and concessions, provides deposit saving support for first home buyers through special savings accounts called First Home Saver Accounts.
These savings accounts are designed to assist eligible Australians aged 18 and over to save for their first home by offering tax incentives and government co-contributions to assist in the savings process.
Co-contributions are paid on individual contributions of up to $5000 per year, at a rate of 17 percent. This works out to be a government contribution of $850 per year, as long as you contribute at least $5000 of your own money.
First home buyer benefits by state summary
- First Home Buyers Grants in Australia
- First Home Buyer Grants Northern Territory
- First Home Buyer Grants New South Wales
- First Home Buyer Grants Queensland
- First Home Buyer Grants South Australia
- First Home Buyer Grants Tasmania
- First Home Buyer Grants Victoria
- First Home Buyer Grants Western Australia
Queensland stamp duty rates help first home buyers
From September 1 2008, Queensland first home buyers will find that it is easier to get into the property market as the State Government abolished stamp duty on homes up to $500,000 in value.
For more information on first home buyers
For more information on how to get into your first home, or the home loan that is in your best interest, talk to your local mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
