Significant benefits are available to first home buyers in Australia, but there are several important considerations to think through before applying for a home loan
A home that you can call your own... Now there’s a goal!
While renting has some benefits, there are typically huge restrictions and limitations. Although owning your own home is a great accomplishment, you will most likely have plenty of questions before you start. The ones listed below are common ones asked by first home buyers.
How can I purchase my first home? How much do I need to have saved?What benefits are there for first home buyers? Are home loans with the cheapest interest rates available to first home buyers?
Each of these questions is dealt with in greater detail in our FREE eBook: A Guide to First Home Buyers.
How can I purchase my first home?
Most first home buyers purchase their first home by using a combination of their own savings and funds borrowed from a home loan lender. This means that you will need to save for your share and the lender will contribute the balance. In general, the larger the deposit you have, the lower the interest rate and costs are going to be and the easier it will be to qualify for a mortgage.
How much do I need to have saved?
The amount that you contribute will be used to cover two things: the upfront costs and your deposit for your share of the purchase price. Nowadays it is almost impossible to borrow all of the purchase price of a property so the absolute minimum contribution for most lenders is 5% of the purchase price. The lender then funds the balance and may even add the mortgage insurance cost to the loan.
Upfront costs will include things like stamp duty, your legal costs, pest and building inspections and other incidentals. Stamp duty calculators online can help you work out how much this will be in your state.
If you are well on your way to saving your share but need help to calculate exactly how much you will need, give us a call on 137262 and we can work it out for you.
What benefits are there for first home buyers in Australia?
The benefits available to first home buyers in Australia are different in each State and Territory, and are constantly changing. They typically came in the form of a grant as well as reduced or no stamp duty.
The $7,000 grant on the purchase of an existing home has finished in most States. If you are purchasing or building a newly constructed home though, you may still be entitled to a grant and possibly stamp duty exemption or concession. To find out what you are entitled to, contact the Office of State Revenue in your State.
Where do you start?
A good thing to do right now is to have a chat with a professional who can answer any questions you may have. The friendly, experienced credit managers at State Custodians will provide helpful information without the pressure of committing and by the end of the conversation you will have a better understanding of what home loan would suit you the best. Give them a call during NSW business hours on 13 72 62 or drop them a note using an enquiry form.
Are home loans with the cheapest interest rates available to first home buyers?
Most home loans are available to first home buyers so researching all home loans that are available is advisable. Low interest rates are definitely an important factor when comparing home loans. You will also be comparing the features that come with the loan.
Your home loan is going to be a big part of your financial life for years to come so it makes sense to get one that is easy to use and will provide you benefits in both reducing the amount of interest that you pay and in making your life easier. State Custodians loans are designed with that in mind. If the cheapest home loans do not have the features that you really need, it may end up costing you more money over the life of the loan. The character of an award winning home loan is a loan that not only has a competitive interest rate, but quality features that will benefit your needs.