First Home Buyers - Survey Results
A recent survey conducted by Loan Market revealed that saving a deposit appears to be the biggest barrier to First Home Buyers entering the market.
Costs such as stamp duty, conveyancing fees, pest & building inspections, registration fees and lenders mortgage insurance add up making it difficult to have sufficient funds to complete even once you have saved a suitable deposit.
Creating a budget with a savings plan can help you achieve the desired savings to meet the costs associated with a purchase.
For more information about the survey click here.
There are options for people with limited savings, so this need not be a barrier to purchasing your first home. Options include:
- Family guarantees,
- 95% loans with credit cards to cover costs,
- 95% loans with borrowed funds to complete,
- Using rental history to meet genuine savings - funds to complete can be gifted or borrowed, and
- Gifts or inheritances alone can be acceptable sources of funds to complete in some circumstances.
Each option has its own risks and are not suitable for all borrowers.
If you're a first home buyer and want to know what options you have available contact John Paine a mortgage broker in the Newcastle area who provides that extra service.