First home buyers
Many of our customers are first home buyers. And the great news is that there are many helpful options available these days to help first home buyers buy their home. Check out our helpful step by step hints to help you get everything you are entitled to.
Deposit - how much do I need to buy a house?
It used to be that lenders looked for a 20% deposit on a house. These days, lenders will accept as little as 0% deposit, but you will still need funds to cover the cost of your fees and stamp duty.
Deposit: Where do I get it from?
You do have a surprising number of options, and some you may not know about:
- Save for your deposit in the traditional way
- Gifted money
- Equity from another property (usually your parents)
- Pledges from relatives
- You may not need a deposit if you have a good income
- Use your First - Home Buyer's Grant
- Use the new First Home Saver Deposit Scheme
First Home Buyers Deposit Saver Scheme
The federal government offers Australian first home buyers a deposit saving scheme, designed to provide a simple, tax effective way for Australians to save a deposit for their first home through a combination of their own savings, a Government contribution and low taxes.
In summary, here is how it works. The Government will pay a contribution on up to $5,000 (indexed) of individual contributions made each year, and individuals can contribute a maximum of $10,000 each year (indexed). Investment earnings (or interest) that accrue in the accounts will be taxed at 15 per cent. Withdrawals will be tax free where they are used to purchase a first home to live in.
Honeymoon rates - are they good value for First Home Buyers?
Honeymoon rates are widely available and are offered to entice you with a low advertised rate. They are often more than 1% below the standard home loan rate and the rate can be fixed, capped or variable for the first 6-12 months of the loan. After that, they usually revert to the standard rate offered by that lender.
Honeymoon home loans can be a great solution and they are becoming increasingly competitive, but always remember that the honeymoon interest rate is only part of the overall pricing you should be looking for when you take out a home loan. The upfront, exit and ongoing fees can add up to a lot of money. Just because you are a first home buyer does not mean you don't have access to the same kinds of loans as other people.
First Home Buyer's Grant
Through the state governments, the Federal Government has a grant available to first home buyers to go towards the purchase of their first property. In Queensland, we also have generous stamp duty concessions.
Get Help from a Good Mortgage Broker
A good mortgage broker will help you with everything you need to know about buying your first home and getting your entitlements. We recommend Julia Kabakoff at Loan Market. His services are free and he has helped many home owners in our area over many years and understands local property values and finding the home loan which is in your best interest.
You can call Julia Kabakoff direct on 0423 027 846
