NEED SOME HELP FINANCING YOUR FIRST HOME?
Congratulations on saving your first home deposit! The satisfaction of seeing the dollars and cents grow in your bank account is a great feeling. Whether it’s $5,000 or $50,000 (or more!) you’ve saved, well done as the hardest part is over.
Now the fun part begins as we look into first home buyer loans for you while you start house hunting. We know it’s a big step and we’re here to help you on your journey. Our experienced and friendly team are genuinely on your side to help make your first home loan experience amazingly enjoyable and as easy as possible.
At Beyond Broking, we search high and low to find you the most suitable deals, interest rates, and any first home buyers grants or incentives you’re entitled to. In the end, the most suitable home loan for you may not be the one with the lowest rate or cheapest fees however it will suit your circumstance and work with your financial situation.
Many factors come into play when applying for home loans, like your income, savings, credit history, guarantors and the size of your deposit.There are other things to consider too, like fees, interest rates and terms and conditions.
Confused? Don’t be. We make it all perfectly clear and guide you every step of the way.
By really getting to know you, we find the home loan that fits you. One that is comfortable, sets you up for the future and has enough room to move so you can still have a social life as all work and no play isn’t fun for anyone!
Our experience in banking means we know what the lenders look for. We make sure you meet all the necessary criteria in order to get the most suitable result. If we say you’re good for it, the lenders tend to agree.
FIRST HOME OWNER GRANT (FHOG) WA
As at: 9 March 2020
First home buyers may be able to receive a grant towards the purchase of a new home.
The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence.
If you are a first home owner, you may qualify for the grant if you are purchasing or building a new home. A home that has been substantially renovated may be considered a new home. The grant is not available for the purchase of an established home or for renovations to an existing home.
The grant is $10,000 or the consideration paid to buy or build the house if less than that amount. Only one grant is payable per eligible transaction, so two people purchasing a house together may only receive one grant.
If you receive the grant, or would be eligible except that you are purchasing an established home, you may also be eligible for the concessional first home owner rate of duty.
For more information see the FHOG Guide.
SOME OF THE MOST COMMON QUESTIONS OUR CLIENTS ASK:
Beyond Broking mortgage brokers are experts in residential and commercial property loans. Lending is all we do! We organise your finances and provide professional advice to match your needs with a suitable lending solution.
We talk to the lenders for you, negotiate better deals than what’s being offered, do all the paperwork and help you avoid taking out a loan you might later regret.
We save you hours of time, as for us, it’s about knowing the industry, planning a better mortgage for you, and regularly monitoring your loans in the proceeding years to ensure they still align with your lifestyle and current market condition. Best of all the bank pays us so you don’t have to.
Generally the banks and lenders ask for the following items however when we first talk to you, we’ll ask you to provide these items and maybe a few other things to ensure our first meeting gets your application started promptly:
- Proof of income (pay slips and bank statements)
- A deposit backed by a proven savings history
- A good credit history (we can still help if you don’t)
Most lenders ask for 5% of the property value as a deposit but you need to factor in purchase costs like stamp duty, conveyancing and the impacts of lenders mortgage insurance (LMI). In general, the more you have saved, the more options you have and the easier the approval process becomes. If you don’t have 5% we do have lower deposit options available.
You can use our [borrowing power calculator] to give you an approximate idea, however we will thoroughly assess your situation and confirm exactly how much you can loan for your home after our first meeting.
Generally speaking, the more money you earn and the less debt you have, the more your capacity to borrow will be. Each lender will be different.
If you’re building or buying a new or substantially renovated home, you may be eligible for the first home buyers grant.
There are several factors that will determine your eligibility for the grant and other assistance schemes. See our useful links and blog for helpful information.
This will depend on the lender you choose, the purchase price of the property, the deposit you contribute and so on. Once we have a clear picture of your finances and property purchasing plan, we’ll be able to better estimate these for you.
Lenders Mortgage Insurance (often referred to as LMI) is a fee charged by lenders, usually when your deposit is below 20% of your property’s value.
If you have to pay it, most lenders will add it to your loan, so you don’t have to save up for it however we may be able to help you avoid this cost altogether. The less fees you need to pay the better!
It sounds a bit dry, but Loan to Value Ratio (LVR) is actually the amount of money you wish to borrow in comparison to the value of your property.
For example; if want to buy a house valued at $500,000 and a have a $100,000 deposit, your LVR would be 80%. Most lenders adjust their interest rates relative to the LVR and have specific ratios to which they will approve lending for.
Variable interest rates move up and down and normally relate to changes in official interest rates set by the Reserve Bank of Australia (RBA). A variable rate loan is beneficial when rates are on the decline or you need flexibility in your home loan.
Fixed interest rates don’t move. You can set (fix!) your rate for a particular period of time, normally between one and five years, and is most beneficial when interest rates are on the rise or want certainty in repayments.