Buying your first home can be challenging. Choosing the right mortgage broker and conveyancer/solicitor will save you a lot of headache. Knowing the major steps involved will make you comfortable with the process and doesn’t overwhelm you.
How to buy your first home in Australia?
- Understand your borrowing capacity and the loan options available
- Understand if your situation is eligible for government schemes
- Understand the numbers involved with buying a property in your range and the deposit/savings you need
- Request for a mortgage broker to email you numbers and bank options
- Arrange a pre-approval for your maximum purchase budget
- Start searching for your dream home
- Understands the process of buying a property and making an offer
- Have the contract of sale reviewed by a conveyancer before you sign
- Review the conveyancer’s reply, if applicable order building and pest inspections
- The loan should go formal; get ready for settlement
As a mortgage broker, I can assist with all the steps above
How much do you need as a deposit for your first home in Australia?
If you are eligible for the government schemes, you would only need to save 5% of the purchase price as a deposit. This can be gifted to you or if you have assets, such as a car, could be used to make it work. If you have a family member that can offer their property as extra security, you may not require a deposit at all to buy a property or your first home. Costs such as stamp duty and conveyancing can be fully funded this way. Check out security guarantor loans to better understand this popular loan.
How can my parents help me buy my first home?
Your parents will need to provide their property as extra security so you can fully fund the purchase including conveyancing cost. This is pretty popular, and allows you to avoid lenders' mortgage insurance. Your parents do not need to change banks, and rates are competitive. If you don't’ have any savings at all, you will need to use a deposit bond to give to the agent for the initial deposit.
Can you buy a property with no deposit or savings?
Yes you can. This normally involves a family member offering their property as extra security and the full cost of buying a property can be fully funded. You will require a deposit bond to give to the agent for the initial deposit. Speak to the agent to make sure their vendor is happy with accepting a deposit bond. Another way, is if you have an existing property, we do a valuation to see if it has increased in value,and take the equity out, to assist with deposit and buying your next property
What if you move out of your first home before 12 months ?
If you receive government grants and stamp duty concession and move out of the property prior to 12 months, you may have to pay the state back what you received. Each state will have systems to audit and can take up to 7 years to complete. I believe, their system should check government data base with water, council, ATO, driver license etc
If you have an investment property, can you still be considered as a first home buyer?
Yes, you can still be considered and receive the government grant and stamp duty concession, as long as you have not lived in the investment property and have not previously claimed state concession or grants.However, you may not be considered under the government scheme as a first home buyer.
Can you buy your family house as your first home under a government scheme?
Yes you can. It is called a Favorable purchase.
How much is first home owners grant ?
As it constantly changes and can varies from states to state, please call 0434192151 to discuss what is application to you.
