First Home Buyers
Buying your first home is one of the best experiences! The process of working towards your goal – building a deposit, working out your priorities so you can achieve it, looking at all the options available and finding that perfect First Home.
So where to start? There are several options to secure Finance for your first home, and they vary depending on your situation.
First, get all your information together… you will need your income and your budget so you can see how much excess money you can save after you have paid all your expenses.
Next, how much do you have available for a deposit? The best scenario is a 20% deposit of your own savings, where you can show the regular savings history. This is 20% of the value of the property, so if you are purchasing e.g. $300,000, the deposit would be $60,000. Don’t forget the Stamp Duty and Government Fees that are added on top. (roughly 5% of the purchase price) If you don’t have 20% you will be able to borrow up to in some cases 97% of the purchase price but you will be paying Lenders Mortgage Insurance which can add a hefty amount to the price.
In all states of Australia, there are various concessions for Stamp duty and Grants for First Home Buyers – In South Australia, The First Home Buyer Grant of $15000 is available for the purchase of new builds or for those building, but not for existing residential homes. Some lenders have special offers for First Home Buyers with discounted rates or cash back for Conveyancing Fees – speak to me about current offers.
Don’t have much deposit? Low income? Self employed or contract worker? Worried about your Credit rating?
The best option here is to make a time to go through the options available.
A bit of planning can set you up for success!