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Buying Your First Home
Buying your first home is an exciting time. But, the excitement and anticipation can be plagued with one crucial question; what is the right option for your first home buyers loans? A good mortgage broker for first home buyers should guide you through the process, making the ins and outs of borrowing money for a home loan easy to understand. If you’re a first time home buyer, you may have many questions.
At Crest Lending we turn a sometimes daunting task into an enjoyable one. We help you focus on what’s important and ultimately achieve your property goals.
What to know when purchasing your first home.
If you’re in the early stages of researching a home loan, you will need to consider several factors. Remember the acronym ACED. It’s your guide to ensuring you’ve ACED the home loan application.
Assess and compare current interest rates
Low-interest rates make applying for home loans an attractive option. Still, it’s essential to consider why interest rates are low and whether that is likely to change and dramatically affect your mortgage repayments in the future.
Choose a repayment option
There are various ways you can pay back a first time home loan. The amount of money you borrow is called the loan principal, and you pay the principal back over time along with interest charged on top of it. A good lender can explain to you the different repayments types to help make your decision
Establish your borrowing power
The size of your deposit will affect your borrowing power. A bigger deposit means your monthly repayments are likely to be lower, and it also means it’s easier to get a first-time homeowners loan. Check out our borrow power calculator to discover how much you can afford to borrow.
Decide a fixed or variable home loan rate
Fixed repayments guarantee your mortgage repayments over a specified period of time, however, they have strict terms and conditions. Variable home loan rates offer more flexibility but remember that your loan repayments change with market interest rates.
First Home Loan Deposit Scheme
Have you ever heard of the First Home Loan Deposit Scheme? This Government assistance scheme can help first home buyers get their foot in the door of the property market by giving greater access to home loans.
For the First Home Loan Deposit Scheme, the Queensland Government will provide a grant of $15,000 to be used to purchase a new property or build a new home. The Queensland First Home Owners’ Grant is an initiative set to help first homeowners to get their new first homes sooner. The schemes’ eligibility criteria varies from state to state and has limits on the value of the property you’re buying.
Who is eligible for the first home loan deposit scheme?
To be eligible for the First Home Loan Deposit Scheme, you must be an Australian citizen. Currently, permanent residents are not eligible. Additionally, you must be a first home buyer. If you currently or have previously owned an investment property or buying your second home then you will not meet the scheme criteria.
If you meet the above criteria, the next step to consider is the type of property you want to buy, The scheme is only open to first home buyers who are planning on purchasing:
- A new build
- Off the plans
- A substantially renovated property
Crest Lending
Working Out the Right Loan Option for First Time Buyers
Before you can decide on the right loan option for first-time buyers, you will first need to understand all the additional costs that come with buying a house. Your deposit will be the biggest cost, and the size of your deposit will help inform banks and lenders how much you can borrow. But there are many other costs to consider beyond the deposit:
Stamp Duty:
Stamp Duty is a tax charged by each State and Territory Government. It’s added to every property purchase and can add thousands of dollars to your purchase costs. First home buyers can often get a discount or even an exemption, but you will need to speak to a specialised mortgage broker on how to receive this.
Council Rates and Strata:
Once you take ownership of a new property, you need to pay council and water rates. If you’re buying a property in a shared complex such as a townhouse or apartment, you will need to pay strata fees that contribute to the property’s overall maintenance.
Inspections:
Yes, house inspections are important even if you’re not renting. Though not compulsory, we recommend hiring a professional building and pest inspection before you make an offer on a property. This is so you can confirm the state the house is in. This is something you will need to factor into your starting costs.
Lenders Mortgage Insurance:
This is a non-refundable, non-maintained premium that’s added to your home loan. It’s calculated based on the size of your deposit and home loan.
For more property buying information check out our Home Buyer Essentials Guide
We Are Experiences First Time Buyer Mortgage Brokers
Are you looking to purchase your first property? There’s a lot of information out there and sometimes it’s hard to know where to begin. Our friendly team of first-time buyer mortgage brokers can help you sift through information and guide you through the Home loan process to make sure you find the right home loan for you.
Contact Crest Lending today to learn about your borrowing power, and how you can enter the property market. Or, call us even if you just want to have a chat, to see how we can help you.
