Got first home buyers questions?
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This depends on your personal situation and will differ between lenders. Use our home loan calculator to get an idea of how much you can borrow and what the repayments would be. Contact us to be referred to talk direct with bank manager / broker free of charge to understand what your borrowing power would be, and what types of loans would suit your needs.
If you are going to live in the home, you’ll usually need at least 5% to 10% of the purchase price, plus savings to cover the cost of buying and moving. However, if you have less than 20% deposit you’ll need to pay Lender’s Mortgage Insurance, which will add to the cost of your loan. If you are an investor, you’ll typically need at least 10% of the purchase price.
Remember to factor in stamp duty, building inspections, conveyancing and solicitor fees. You’ll also need some savings to cover the cost of moving, and any urgent repairs or improvements you may need to make to your new home before moving in.
If you have less than 20% deposit you’ll need to pay Lender’s Mortgage Insurance. It’s a flat, one-off fee that is added to the cost of your loan. It protects the lender if for some reason you can’t meet your loan repayments – and it allows you to buy your home sooner, even if you don’t have quite enough saved for a deposit.
When you find the perfect home, you need to move quickly. We can help you get in front of the right professional bank managers / brokers that can arrange fast track your pre-approval, so you can be confident when you’re bidding at auction or negotiating an offer.
The First Home Owner Grant scheme is a one-off payment to help eligible first home owners with purchase or construction costs. The amount varies by state or territory and ranges from $5,000 up to $25,000. This can make a big difference when you’re buying your first home – check the requirements for your state here.