Buying your first home
Buying your first home is a significant step and the key to a low-stress first home purchase is knowledge. Knowing your options and entitlements, being prepared and sourcing the assistance of the appropriate professionals – which include a a Loan Market mortgage broker, accountant, financial planner and solicitor – will ensure you find the right home loan to suit your situation and the first home buying process runs smoothly. And now that the Boost to the First Home Owners Grant halved from October 1 2009, it’s important to plan accordingly and secure a home loan pre-approval so you don’t miss out on this benefit, which will come to an end on December 31 2009.
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 equity, family pledge, equity guarantee) home loans, and low or no deposit home loans. First home buyers can also access a range of standard residential home loans.
Secure your first home loan and first home buyer entitlements
To find your first home loan, work out your deposit requirements, or secure all the applicable government grants or concessions, talk to your Loan Market mortgage broker by filling out the form below, or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
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
- Low 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 of $7000, plus the First Home Owners Grant Boost of $3500 for existing homes and $7000 for newly built properties (the Boost amount was halved from on October 1 and will be phased out at the end of 2009). Stamp duty discounts are generally also available.
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.
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.
