First Home Buyers
Navigating the property market can be tough, especially for first home buyers. Negotiating with real estate agents, attending inspections, and exploring loan options can be intimidating. At My Finance Consultants, we strive to take the stress out of purchasing your first home or investment property by providing high-quality education and guidance every step of the way.
There's nothing like the feeling of turning the key to your new home for the first time. While the journey can be stressful, with budgeting, house hunting, and sacrifices along the way, it’s all worth it in the end. Our mission is to help you experience this moment as soon as possible. Below, we’ve outlined the steps to home ownership and answered some common questions you might have.
Your path to home ownership
Understanding Your Borrowing Power
One of the first big questions is how much you can borrow and what your likely repayments will be. If you would like to get a better idea of your borrowing power and what your likely repayments might be, try our Borrowing Power Calculator and Loan Repayment Calculator.
Pre-Approval: Know Your Limits
If you haven't started your property search, obtaining a pre-approved loan can be beneficial. It provides a clear picture of your spending limits and can strengthen your negotiating position compared to other potential buyers without pre-approval. Remember, even with pre-approval, including a subject-to-finance clause in any sale contract is crucial.
Rentvesting: A Strategic Approach
Rentvesting is an increasingly popular strategy for first-time buyers. This involves buying an investment property while continuing to rent in a preferred location. Benefits include investing sooner, renting in desirable areas you may not afford to buy in, and growing equity in income-producing assets, which can be used for future investments or to purchase a home later.
Guarantor Loans: A Helping Hand
One popular option for first-time buyers is a guarantor loan. This type of loan uses a guarantee from another party, usually parents, who use equity from their own home or portfolio to guarantee part or all of the deposit. This approach can help you purchase a property more quickly and potentially avoid Lenders Mortgage Insurance (LMI).
Understanding the Process
We understand that becoming a homeowner is a significant decision. Our goal is to ensure you have the ideal finance that meets your needs. The lending space can be complex, with jargon and numerous options, making decisions daunting. We’re here to help you navigate this process, understand the available options, and guide you through your first home loan and beyond.
Establishing Good Financial Habits
Before applying for a home loan, it’s essential to establish positive spending and savings habits. This not only makes you a more attractive candidate to lenders but also demonstrates your capability to manage home ownership responsibilities, including rates, mortgage costs, and property maintenance.
Home Guarantee Scheme
First Home Guarantee
The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers to buy a home sooner. It is administered by Housing Australia on behalf of the Australian Government.
Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the FHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply. Access the Eligibility Tool – a short questionnaire to help prospective home buyers determine which Guarantee they may be eligible for.
Regional First Home Buyer Guarantee
The Regional First Home Buyer Guarantee (RFHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers to buy a home sooner. It is administered by Housing Australia on behalf of the Australian Government. The RFHBG aims to support eligible regional home buyers to buy a home sooner, in a regional area.
Under the RFHBG, part of an eligible regional home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the RFHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply. Access the Eligibility Tool – a short questionnaire to help prospective home buyers determine which Guarantee they may be eligible for.
Family Home Guarantee
The Family Home Guarantee (FHG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home sooner. It is administered by Housing Australia on behalf of the Australian Government.
The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner.
Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance.
For the FHG, any Guarantee of a home loan is for up to a maximum amount of 18% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.
FHG applicants can be either first home buyers or previous homeowners who do not intend to own a separate property upon settlement of the guaranteed property they’re buying. Access the Eligibility Tool – a short questionnaire to help prospective home buyers determine which Guarantee they may be eligible for.
Stamp Duty Concessions
As a first home buyer, you may be eligible for stamp duty concessions or exemptions, which can significantly reduce the upfront costs of purchasing your new home. These concessions vary depending on the state or territory in which you are buying, and they can make a substantial difference to your overall budget. It's essential to understand the specific eligibility criteria and how these concessions can benefit you. To help you calculate the potential savings, use our Stamp Duty Calculator and see how much you could save on your property purchase.
First Home Owner Grants
As a first home buyer, you may be eligible for a government grant. This grant may be available to Australian citizens or permanent residents who wish to buy or build their first home as their principal place of residence within 12 months of settlement. The First Home Owner Grant (FHOG) is a national scheme funded by the states and territories and administered under their own legislation. Under the scheme, a one-off grant is payable to eligible first home owners. Click here to see if you are eligible or to obtain more information.
Comprehensive support
We can provide individual assessments to help determine your borrowing capacity and translate this into a purchase price. We also offer clear insights into various First Home Buyer incentives, grants, and schemes applicable to you. With so many loans and lenders, finding the right one can be daunting. Our team has access to a wide range of loans and the expertise to narrow these down to options tailored to you. We’ll manage the entire application process, from initial decision to settlement, ensuring you don’t miss any critical steps in the process. Let's buy a home together!
Why choose My Finance Consultants?
We do all of the legwork
We compare hundreds of home loan options from a wide choice of lenders, including the big banks and specialist lenders. We handle every step, having a thorough process in place to qualify you with our lender panel to find the most suitable lending options for you. We organise all of the required paperwork, order lender valuations, liaise with your real estate agent and conveyancer for a smooth transition to settlement.
We provide a convenient service
Mortgage Brokers save you the time and hassle involved in applying for a home loan - from application through to settlement. We'll meet at a time and place that best suits you, to establish your needs and preferences. We then do all the research and running around to manage every step of the application process. This saves you shopping around - as we do it all on your behalf.
We provide professional advice
We are fully trained, and accredited with every lender we represent. We are full members of the Mortgage & Finance Association of Australia and we have many years of industry experience. We also have a number of consumer protection initiatives in place to protect you - our valued clients. As mortgage professionals, we seek to guide you through the lending process to help you make better financial decisions.
We help you select the right home loan
Our first priority is helping you select the home loan that’s right for you, now and into the future. Your Mortgage Broker will save you the time and hassle associated with shopping around for a home loan, they will also guide you through the home lending process to help you make better choices with your personal finances.
We will always try to save you money
We use comprehensive software which helps us pinpoint the most suitable and competitive home loan for you. Typically, our service can help cut the current interest rate you are paying as well as reduce your fees and monthly repayments. Using a Mortgage Broker is also a great way to figure out a strategy to maximise your borrowing power.
We don’t charge you a fee for our service
There is no charge to you for our services because the lender pays us a commission once your loan has settled. We do charge a commitment fee for home loan pre-approval applications, however we will refund this to you upon settlement of your home loan. We will always aim to provide a trusted, friendly and professional mortgage broking service.
Our clients have been saying some great things about us!
Whatever your goals, a competitive home loan will get you there faster!
Whether you're a first home buyer, upgrading to your next home, getting into property investment, or wanting to refinance and pay off your existing home loan sooner, we can help you make the right decisions and stay on top - whatever your home loan needs.
We'll compare more than 40 leading banks and lenders, as well as hundreds of home loan options to find one that's right for you. No matter what kind of mortgage you're interested in, you'll enjoy expert home buying and lending advice from a Mortgage Broker you can trust.
Our industry knowledge and sophisticated mortgage software allows us to assess and compare the hundreds of home loans that are available in the marketplace, we will calculate your borrowing capacity and identify which lenders you will qualify with.
If you're ready to start your home loan journey, give our friendly team a call on 1300 381 955 or visit the Book Appointment section on our website.
FAQs
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We typically recommend a Packaged Loan which includes:
- Offset Account
- Rate Discount
- Fee Free Credit Card
- Ability to vary your loan at no extra charge
This type of loan package usually has an annual fee, but the benefits often outweigh the costs if you derive value from the features.
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Yes, we recommend seeking professional legal advice for any property purchase. Your lawyer should be appointed before you start negotiating on a property. They should review your contract before you sign it and pay your deposit.
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To secure the property and take it off the market, you typically need a minimum deposit of 5-10%. If you don’t have more than that, consider these options:
- Family Guarantee: If your parents have equity in their property.
- Lenders Mortgage Insurance: If you and the property are eligible.
With both solutions, you must demonstrate you can afford the higher loan repayments that come with a higher loan amount.
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LMI is a one-off fee paid to an insurance provider for borrowing above a certain Loan to Value Ratio (LVR), typically 80%. It protects the bank in case they need to sell your property at a loss. The benefit to you is the ability to borrow more and access a higher value property, but it comes with the cost of the insurance premium.
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Yes, within certain parameters, you can add LMI to the loan. This is known as ‘capitalising’ LMI.
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Yes, we have managed the smooth settlement of hundreds of off-the-plan properties. We know the steps and intricacies in great detail to ensure your property settles on time.
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A Pre-Approval is a credit-assessed application where the bank is willing to lend to you subject to the valuation and other conditions. It allows you to negotiate for a property with confidence and move quickly when you find a property you like. It also reduces the time to Formal Approval as a credit officer has already reviewed your file. We strongly recommend obtaining a pre-approval if you are actively looking and negotiating for property to put you in the strongest position.
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A pre-approval typically lasts for 6 months. At 90 days, you must update the pre-approval by sending in new pay verification and supporting evidence proving your financial position has remained unchanged.
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Yes, it is very common for parents to contribute some form of gift to assist their children with getting into the property market.