First Home Buyers
If you are like most first home buyers you are excited and nervous about getting your foot in the door of your own home.
You may also be a little uncertain of how the lending process works and want to ensure you make an informed decision. I will answer all of your questions to make sure you understand all aspects of your loan.
Some of the common questions include:
- How much can I borrow?
- How much deposit do I need?
- Am I eligible for the First Home Owner Grant or Stamp Duty discounts?
I have access to hundreds of home loan products from a wide panel of over 35 banks and lenders. The loan that’s suitable for someone else may be completely wrong for you. I will help you compare home loans to find the most competitive offer for your finance needs and unique lifestyle.
I have laid out a step by step process to buying your first home. This puts your mind at ease & takes any unwanted stress out of the equation.
Step 1: Initial Appointment
- Sit down and establish financial goals for the future
- Collect information to establish current financial position
- Calculate borrowing power based on information provided
- Explain and go through all the range of loan options and features available, including variable, fixed, redraw vs offset accounts, 80% loans to high loan options, lenders mortgage insurance, guarantor loans etc.
- Discuss the First Home Buyers Grant and stamp duty discounts available
- Establish how much deposit is required to purchase the desired amount
- Set up a savings plans & budget if more deposit is required
Step 2: Pre-Approval
- Go through the different loan options to suit your needs
- Collect all required documentation as per the lenders request
- Submit application for pre-approval with lender of choice
- Receive pre-approval letter from lender (the hard part is done!)
Step 3: Finding A Property
- Establish the area you wish to buy in
- Set up realestate.com alerts for your chosen area
- Source a conveyancer or solicitor to assist with the review process and to eventually facilitate the settlement (I work with a local trusted solicitor that will assist with the review at no cost!)
- Source a local property and pest inspector if required (I work with a local and trusted property inspection business)
- Work with our real estate agents to help find your dream property
- Submit your offer once the property is found
Step 4: Contract of Sale
- Your offer is accepted, congratulations!
- Convert pre-approval to full approval
- Sign loan contracts
- Put appropriate insurances in place ASAP (important!)
Step 5: Settlement
- Parties from your side as well as the sellers side will meet & exchange documents & money
- Pick up your keys & move in!
Guarantor Home Loan – Can my family help me buy my first home?
A guarantor allows you to purchase a property sooner and potentially save thousands of dollars.
Around 60% of first home buyers get help from their parents, usually in the form of a guarantor home loan.
By using the equity they've built up in an existing property, a guarantor can help you buy your first home sooner - and the best part is they don't need to actually provide you with any cash.
A guarantor will use their existing equity as security against your loan. One of the most popular reasons purchasers use guarantors is to avoid paying Lenders Mortgage Insurance (LMI) when they have a smaller deposit.
What are the benefits of using a guarantor?
- You may be able to buy a home sooner as you may not need as big of a deposit
- You can buy a larger, more expensive property than you originally planned
- You can avoid paying Lenders Mortgage Insurance (LMI)
- Once your lending is 80% of the value of your home (80% LVR) you may be able to remove the guarantee and switch to a standard home loan (remove your guarantors from the loan).
Who can be my guarantor?
Guarantors can be parents, parents-in-law or step parents (grandparents and siblings will also be considered). A guarantor must have a minimum level of existing equity in a property they own. The level of equity depends on the lender you choose.
I can provide the proper guidance around how guarantor loans work. If you're considering a guarantor loan, I can let you know which lenders are willing to work with guarantors and will also be able to negotiate between several lenders so that you end up with the most competitive product.