First Home Buyer
Buying your first home can be one of the most exciting and rewarding investments of your life. It can also be one of the most important, and sometimes it's difficult to know where to start. You will probably have a lot of questions - we will try to answer some of the most common ones here.
- How much deposit do I need?
- Am I eligible for the First Home Owners Grant?
- Eligibility requirements
- What are the costs involved in buying my first home?
- Am I eligible for any discounts on my Stamp Duty?
- How much can I borrow?
How much deposit do I need?
Most lenders will require a minimum deposit of 5% which you will have to demonstrate as being genuinely saved over at least a 6 month period. Some lenders will permit a genuinely saved deposit of just 3% and allow the remaining funds to be covered by a gift, a lump sum payment or the First Home Owners Grant.
Am I eligible for the First Home Owners Grant?
The First Home Owner Grant (FHOG) was introduced on 1 July 2000 as a one off payment of $7,000.00 to first home buyers.
Eligibility requirements
- This will be the first time your or your spouse/de facto will receive a grant under the First Home Owner Grant Act 20002 in any State or Territory.
- You and/or your spouse/de facto have not owned a residential property, jointly, separately, or with some other person, in any other State or Territory before 1 July 2000.
- You and /or your spouse/de facto have not owned on/after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory.
- Each Applicant is a natural person and not a company or trust.
- Each applicant must be at least 16 years of age.
- At least one applicant is a permanent resident or Australian Citizen.
- At least one applicant will occupy the home as their principal place of residence for a continuous period of six months commencing within 12 months of settlement or construction.
- You have entered a contract for the purchase of a home on/after 1 July 2000 or signed a contract to build a home on/after 1 July 2000.
For more information fill in our short enquiry form and a mortgage consultant in your area will give you a call.
What are the costs involved in buying my first home?
Along with your 5% deposit, you will need enough money to cover your costs. Costs may include:
- Loan application fees
- Settlement and Establishment fees
- Stamp Duty
- Transfer fees
- Mortgage Insurance
- Legal fees
Other costs involved in buying a home can include building inspection fees, pest inspections, building and contents insurances, removalists, utility connection and rates.
Am I eligible for any discounts on my Stamp Duty?
First home buyers are often eligible for stamp duty discounts. The type and amount of the discount varies depending on the state you are purchasing in. Some states base the level of discount on income; others base it on the actual price of the property. Tridential will be able to provide a detailed overview of the discounts that apply to your individual situation.
How much can I borrow?
The amount that you can borrow, sometimes referred to as 'borrowing capacity', will depend on your current income and expenditure. Using this information the lender will determine the maximum amount they will allow you to commit to a home loan repayment each month. Then they will calculate the corresponding maximum loan amount. The maximum amount that you can borrow will vary from lender to lender and is dependent on their individual lending criteria. Tridential can provide you with an overview of how much you can borrow from a range of banks and lenders - you may be surprised by the difference from one to another.
If you need more information on these types of home loan products and how they suit your individual home loan needs, our mortgage consultants can help.
