FIRST HOME BUYER LENDING INFORMATION PAGE
Following are the top 3 FAQ’s I have heard from first home buyers, click on each question to learn more.
What are the government grants, schemes available for first home buyers?
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HOW MUCH CAN I BORROW?
This is probably the first question that most first home buyers are trying to figure out.
Your borrowing capacity is a function of your income, expenditure, liabilities and personal circumstances (including number of dependents etc.). To get an accurate estimate of your borrowing capacity book a free call with our mortgage broker, but to get a general idea please calculator below. Please see calculator disclaimer below.
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This calculator is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.
Results are based on information you provide and do not take your personal circumstances into account.
It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
The calculator is not intended to be your sole source of information when making a financial decision. Consider getting advice from a licensed finance professional, if you need it.
Using this calculator does not guarantee you will be eligible for a loan. You will need to satisfy your lender's lending criteria.
The average interest rate reflects the most recent Economic and Financial Statistics data (Housing Lending Rates) published by the Reserve Bank of Australia.
HOW MUCH DEPOSIT DO I NEED?
The cash deposit covers a percentage of the property price, while the home loan covers the rest. For e.g. if a lender is willing to lend up to 80% of the property value, then you will need contribute the balance 20% to complete the purchase.
Smaller deposits - Lenders realise it can be a challenge to save a 20% deposit, which is why some lenders will lend up to 95% of the property value and you will still have to come up with the balance 5% to complete the purchase. But if the deposit is under 20% you will have to pay a Lenders mortgage insurance as there is greater risk to lender.
But the benefit to eligible first home buyers is that they can avail the First home buyers guarantee scheme (subject to conditions), wherein the government guarantees up to 15% of the purchase price if the first home buyer can contribute 5%, the benefits to the buyer include LMI waiver plus competitive interest rates.
WHAT ARE THE GOVERMENT GRANTS & SCHEMES AVAILABLE TO (ELIGIBLE) FIRST HOME BUYERS
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If the eligible buyer deposits 5% of the property value then Housing Australia guarantees up to 15 percent of the value of the property purchased (financed by a participating lender). There are up to 35000 guaranteed loan each year.
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FHOG - The FHOG is a one off payment made available when you buy or build your first new home or subject to conditions a substantially renovated house.
Unlike the FHBG the FHOG is state-specific scheme and the eligibility criteria & price-cap varies depending on the state for e.g. in NSW the price cap for buying a newly built home is $600,000 and home-building contract is $750,000. Whereas in Victoria the price cap is $750,000 irrespective of whether you are buying or building a new home.
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Stamp duty concession is state specific and is subject to price caps and several other eligibility criteria.
Please book a call with your friendly broker and we shall give you advice specific to your circumstances.
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We can compare loan product options from 40 different lenders and provide tailored advice to suit your particular circumstance.
This service is completely free with no obligations, book a 5 minute call with us by clicking on this button