First Home Buyer Loans
Your first home purchase, whether it be an owner occupied property or an investment, is likely to be the most significant purchase you have ever made. Well informed decisions are the only way to achieve your goals without the stress. We help first home buyers throughout the process and keep you informed every step of the way. Get in touch with us today to discuss your situation in detail.
Buying your first home should be one of the most exciting times of your life and it can be if you get professional advice.
We know that the First Home Buyer experience is one that is riddled with complexity, one that is difficult to navigate, and one that requires a large amount of time to research. Our website and guides are here to provide you with a broad and generic overview of various concepts that might guide you through your early decision-making. However, it’s only after we’ve evaluated your personal financial position that you will be equipped with the necessary knowledge to make better educated and more information decisions. Your first home purchase is one of the most significant financial investments you will make early in your life, and possibly your entire life. It will represent a financial burden and invariably impact upon your lifestyle, but it will also provide a basis for wealth creation. It’s an exciting time, and we’ve love to help you.
The job of a mortgage adviser is to relieve mortgage stress by guiding you into a suitable financial solution and assist you with the structuring of your finances to minimise debt. We have an extraordinary wealth of knowledge and resources that ensures our clients receive first-class advice, and our systems for after loan-settlement will ensure your loan is monitored to ensure your loan remains competitive into the future (nobody wants to donate money to the banks). We will ensure that you fully understand every step of the borrowing process, and I encourage you to contact me at any time. Not all home loans are created equal, and the same can be said for mortgage brokers.
Can I buy my first home?
This is perhaps the most important question we can answer for you. As your mortgage broker, we are the only professional that is there with you every step of the way and it all starts with the planning stage. Would I qualify for a loan and what would my maximum purchase price be? What sort of properties can I look at and how do I know what they might be worth? When do I pay the deposit and what do I need to do before settlement day? There are so many questions and we can answer them all. One of the most important things we give our clients is confidence. We help our clients through face to face consultation, lengthy and detailed emails, helpful PDF guides and phone calls when it’s time for a chat. When you deal directly with a bank, you are just a number. When you deal with us you are treated as a person that matters. It’s a big difference.
We are available to help you when you need it the most and that is often on the weekends when you are in the middle of a purchase negotiation. Our advice is timely and reliable and our primary goal is to protect your financial interests so your purchase dreams don’t become a purchase nightmare. Losing a 10% deposit is one of the largest risks when buying a property and we have a proud track record of over 20 years as a mortgage broker protecting our clients from this disaster. Our advice is not always what you want to hear which can be to reduce the maximum purchase price or delay the purchase until your situation improves. We are patient and will work with you for as long as it takes to ensure your smooth transition into the property market.
So what’s the process?
Get in touch with us to make an appointment for an obligation free consultation. During this meeting we will get to know you and ask questions to ensure we can tailor our approach perfectly for you. We never ask you to make decisions in this consultation. It’s an opportunity to understand your situation and provide valuable advice which we will back up by putting it in writing. You shouldn’t make a home loan decision without seeing the details in writing!
The logical next step after the preliminary advice stage is to get your home loan pre-approved and have you ready to negotiate a purchase. We also help our clients with professional property research reports from Corelogic, the industry leading property data analysts. These reports save our clients time by researching the facts upfront before making a time to inspect. Our service, negotiating ability and advice continues throughout your journey towards what we like to call “keys day”! You’ll never be left in the dark when you choose Melbourne Mortgage Advice and that’s our promise.
First Home Owners Grant
The First Home Owners Grant is a national scheme funded by the States and Territories and administered under their own legislation. The grants differ from State to State, and can take the form of a discounted or reduced property transfer fee, and maybe a one off tax-free payment to first home buyers in Australia, who satisfy the eligibility criteria. The eligibility criteria also varies across the states and can include conditions such as you must be at least 18, you or other applicants may not be a company or trust, at least one of the applicants must be a permanent Australian resident, and you must occupy the residence for 6 months beginning in the first 12 months of settlement.
The following links will take you to a Government website detailing the incentives that apply in each state. Of course, you can contact us and we’ll be happy to provide you with appropriate information.
Getting the facts upfront is vital when it comes to concessions and grants.
First Home Loan Deposit Scheme
There’s nothing quite as exciting as receiving a shiny set of keys to your very own home. The thrill of knowing it’s all yours. The freedom to be able to do what you like with it. Nothing compares! If you’re an aspiring first home buyer, the new First Home Loan Deposit Scheme may help you reach your homeownership goal sooner. Here’s what you need to know. The First Home Loan Deposit Scheme explained. On the 1st January 2020, the Australian Government launched the First Home Loan Deposit Scheme. It provides a guarantee allowing eligible first home buyers on low and middle incomes to buy a home with a deposit of as little as 5 per cent (subject to their lender’s criteria). Potential applicants can choose from a panel of participating lenders, which includes major banks and smaller lenders.
How many people can access the Scheme?
The scheme is capped at 10,000 places this financial year. A further 10,000 places will become available from July 2020. In January, lenders registered 3,000 potential first home buyers under the Scheme. From the 1st February 2020, 7,000 additional places became available.
Who is eligible?
Key eligibility criteria include:
An income test (your taxable income for the previous financial year must not exceed $125,000 for singles or $200,000 combined for couples)
You must not have owned a property previously
You must be an Australian citizen
You must be aged 18 or over
You must have a 5 per cent deposit saved (if applicants have 20 per cent or more saved, they will not be eligible)
You must intend to live in the property (and move in within 6 months of the date of settlement or, if later, the date an occupancy certificate is issued). You must continue to live there for as long as your home loan has a guarantee under the Scheme.
You can check whether you’re eligible using this handy online tool. You can also find further information about eligibility here, or better yet, speak to us and we’ll run through the eligibility requirements with you.
To be eligible, the property you intend to buy must also meet certain requirements. For example, it must:
Be a residential property (as defined under the Scheme)
Have a sale price under the price cap for the location (for example in Melbourne the price cap is $600,000). You can find more details about the price cap values here.
Be bought by an eligible first home buyer under the Scheme, who at settlement date will be the sole registered owner/s of the property.
Be an established dwelling or a new-build dwelling purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an eligible loan from a participating lender.
You can find further information about property requirements here.
Are all home loans eligible?
No. There are certain rules about the type of home loan which can be accessed under the Scheme. For example, you must take out a principal and interest loan (exceptions may be granted to borrowers constructing a new dwelling) with a term of 30 years or less (with no changes to loan terms). You must use all of the proceeds for the purchase (or towards the purchase and improvement) or construction of the eligible property, and your loan commitment must not be less than 80 per cent of the value of the property, nor more than 95 per cent.
Talk to us about your plans and we’ll explain the home loan requirements. We’re here to help! If you’d like to find out more about the First Home Loan Deposit Scheme and other incentives available to you, please reach out. We can walk you through the eligibility requirements and lodge your application with a participating lender on your behalf.