LOANS FOR FIRST HOME BUYERS

Our service is:

1. Free of charge to you because the lenders pay us
2. Has no obligation
3. Convenient, will be at a time and place that suits you 7 days a week

At the appointment, we will:

1. Assess your current financial situation\
2. Compare hundreds of Home Loan options and find the right one for you
3. Calculate your borrowing power and let you know your repayments
4. Explain different loan features, options, fees and charges
5. Give you expert advice and help you make the right choice
6. Explain bank jargon, like Lenders Mortgage Insurance, P&I, LVR etc
7. Answer all of your questions

Home Buying Tips

Buying your first home is exciting, but being well-prepared is essential. Here are some valuable tips to consider:

1. Financial Preparation: Before diving into the market, understand how much you can afford. Please speak with our mortgage broker to secure pre-approval and compare loan repayment options within your budget. Our goal is to give you confidence in your financial capacity.

2. Location Research: Take the time to research the area where you intend to buy. Investigate property prices, nearby services, school quality, parks, and transportation options. Utilise free suburb and property reports to gain valuable insights into your chosen neighbourhood.

3. Engage with Real Estate Agents: Build relationships with local real estate agents. By expressing your preferences and staying on their radar, you’ll have a better chance of being the first to hear about new property listings.

4. Thorough Inspections: When you’ve found a potential dream home, don’t rush. Schedule comprehensive building and pest inspections by qualified professionals to ensure no hidden issues.

5. Strategic Approach: Whether you’re making an offer or participating in an auction, it’s crucial to have a well-thought-out strategy. Consider the property’s time on the market, competition from other buyers, and your financial boundaries.

By following these tips and utilising our expert guidance, you’ll embark on your homeownership journey confidently and efficiently. We’re here to make your dream of owning your first home a reality.

Expanded Home Guarantee Scheme.

More Australians (and permanent residents!) will soon be eligible for a leg up into the property market under an expanded Home Guarantee Scheme. Today, we’ll run you through all the upcoming changes to the low deposit, no lenders mortgage insurance scheme.

The expanded Home Guarantee Scheme, officially unveiled as part of the 2023 federal budget, will have broader eligibility criteria from 1 July 2023.

So if you’re a single parent or guardian, first home buyer, haven’t owned property for a decade, permanent resident, or looking to buy a home with your friend or sibling – be sure to read on to find out if you’re eligible.

What is the Home Guarantee Scheme?

Getting a deposit together can be a massive hurdle when buying a home.

And if your deposit is lower than 20%, you can get stung with lenders mortgage insurance (LMI), which can cost you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.

However, the federal government has three low-deposit, no-LMI schemes through the NHFIC (National Housing Finance and Investment Corporation).

This means if you’re eligible, you won’t need to wait until you’ve reached the standard 20% deposit.

The First Home Guarantee and Regional First Home Buyer Guarantee support eligible buyers to purchase a home with a low 5% deposit and no LMI.

The Family Home Guarantee assists eligible single parents to buy a home with a deposit of just 2% and no LMI.

Access to these schemes can, on average, bring forward the home-buying process by five years!

It’s worth noting that there are eligibility criteria that cover property types, locations, and prices.

But an experienced broker (that’s us!) will be across all the ins and outs to help you work out if you qualify.

What are the upcoming changes?

Good news if you are among the increasing number of Australians joining with friends, siblings, and other family members to buy a home.

On 1 July 2023, you may be eligible to lodge a joint application under the First Home Guarantee and Regional First Home Buyer Guarantee; previously, you could only apply as an individual or married/de facto couple.

Meanwhile, the Family Home Guarantee is set to expand to include single legal guardians, such as an aunt, uncle or grandparent. Previously, it was only for eligible single natural or adoptive parents.

All three schemes will expand to eligible borrowers who are Australian permanent residents, in addition to citizens.

All three guarantees will include eligible borrowers who haven’t owned a property in Australia in the last ten years.

What you need to know

The Home Guarantee Scheme can be a great way to fast-track getting into the property market.

But you’ll have to get in quickly because places are strictly limited.

That includes 35,000 places per financial year across the First Home Guarantee, 10,000 places per financial year under the Regional First Home Buyer Guarantee, and 5,000 places per financial year under the Family Home Guarantee.

Not all lenders are involved with the scheme, but we can help you identify and compare participating lenders.

So, give us a call today to get the ball rolling.

Family Guarantee Loan

Another option is a family guarantee home loan or pledge loan, which will help you get into your new home sooner.

This type of loan uses the equity in a family member’s property to secure your mortgage.

Avoid paying lender’s mortgage insurance and maximise the amount you can borrow.

Family guarantors are usually parents, parents-in-law or stepparents, but siblings and grandparents may also be considered.

We’re here to explain the details of a family guarantee loan and help you decide if it suits your situation.

Are you considering a pledge loan? We can help you make your decision and find the right loan. Contact us to get your questions answered.

As it becomes harder for first-home buyers to get on the property ladder, a family member can help them with a pledge loan. No cash will leave your family member’s hands—they have to be willing to secure your loan with the equity in their home.

 How much will a family pledge loan help?

Depending on how much your family member is willing to guarantee to your lender, a family pledge loan can allow you to borrow up to the total purchase price of your new home. It can also cover costs associated with moving in, such as stamp duty and legal fees.

The Benefits

1. You won’t need to spend as much time saving for a deposit.
2. You won’t need to pay lender’s mortgage insurance (usually compulsory if you borrow 80% or more of the purchase price).

Some loans allow you to use the funds to pay for other outstanding debts not associated with purchasing a home.

If you’re a First-Time Home Buyer and think you’ll be seeking a home loan in 2024, contact us today.