Becoming a first home buyer
Buying your first home is very exciting, it’s a big step to take and one that usually needs a little guidance.
* The first big question is “how much can you borrow” and …. what is it going to cost each month ?
* Knowing the maximum amount you can borrow Plus whatever deposit you have will give you a pretty good idea on what your purchase price may be before you start shopping.
* Getting a great rate is the easy part , finding the right bank and product to suit your lifestyle is what we should focus on first as this could save you a lot of money.
That’s where we can help…. We’re able to access a wide range of home loans products available from Australia’s leading lending institutions, even some loans specifically designed for First Home Buyers.
Stamp Duty Scrapped
As of 1st July 2017 … the Government has introduced its subsidy on Stamp Duty for First Home Buyers !!
NO Stamp Duty for First Home Buyers on homes up to $650,000 ( Saving around $26,857 )
Additional discounts for First Home Buyers on homes up to $800,000 ( sliding scale )
You may also be eligible for a first home buyer grant which ranges from $5,000 to $20,000 depending on which state you are buying in
This is a grant available to Australian citizens or permanent residents who wish to buy or build their first home, which will be their principal place of residence within 12 months of settlement. As grant conditions vary from state to state, contact us to find out how much grant money you could receive.
We will also liaise with the lender, your conveyancer and your real estate agent. Basically, it’s our job to do all the hard work and you can focus on finding the right home for you. We’ll be there every step of the way to guide you through the entire home loan process – from application to Settlement.
A general First Home Buyer FAQ guide
Because we’re all unique when it comes to our finances and borrowing needs, Ezy Loans Finance are experts in working out your borrowing capacity based on your individual circumstances. Shoot us an email or call us direct to get an estimate within a few minutes over the phone.
Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available, so talk to us today.
You will need at least 5% of the purchase price which generally must be saved over a 3 month period or more. There are some other ways if you’re currently renting but give us a call and we can work on some options for you.
You may also be able to borrow against your parents home. Ask us how today.
Go to our Repayment Calculator for an estimate. Because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll find the right loan set-up for you.
Most lenders offer flexible repayment options to suit your pay cycle as well as the type of loan you decide on. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:
- Stamp Duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
- Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
- Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.
- Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
- Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
- Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.
