Buying your first home can be an exciting experience. From understanding LMI and stamp duty to navigating the application process, loans.com.au is here to help.
Stamp duty is a tax imposed by state governments in Australia on the purchase of assets such as real estate. There are many factors involved in determining the cost of stamp duty for a property. These include:
Most state and territory governments provide stamp duty concessions to first home buyers and sometimes waive the need to pay stamp duty altogether. It’s best to research your individual state or territory to see what the maximum property value is so you can avoid paying stamp duty.
Lender’s mortgage insurance (LMI) in a nutshell, is insurance that protects the lender in the event the borrower is unable to make repayments on their home loan. If you have borrowed more than 80% of the value of the property from a financial institution, you will need to pay LMI. To learn more, click here.
Lenders Mortgage Insurance (LMI) is calculated as a percentage of the loan amount. It will vary on factors including your loan-to-value ratio and the amount of money you intend to borrow. To learn more, click here.
A home loan pre-approval means that a lender has agreed, in principle, to lend you an amount of money towards the purchase of your home but hasn't proceeded to a full or final approval.
Buying a home doesn’t have to be daunting. Proven steps to smooth the way include determining your budget and borrowing capacity, understanding costs, choosing the right home loan, getting approved, finding your home, inspections, negotiation and settlement. To learn more, click here.
One of the benefits of being a first time home buyer in Australia is the access to a First Home Owner Grant. A First Home Owner Grant or FHOG was introduced by the Australian government to help first time homebuyers purchase their home. The requirements aren’t self-evident and every state and territory has different criteria and grant offers. To get more information about FHOG in your state, we suggest you visit the relevant website:
ACT | NSW | NT | SA | QLD | TAS | VIC | WA
You are eligible if you are an Australian citizen or permanent resident, building your first home in Australia, with the intention of living in the property as your principal place of residence within 12 months of settlement and for at least 6 months. It is important to refer to each state website for the grant eligibility as the state conditions vary.
We can lodge your first home owner's application on your behalf so that the grant is available for you at settlement. You must complete the state specific application form, and provide the original application and required documentation before this can be lodged.
You can use the First Home Owners Grant (FHOG) as part of your deposit, however, if you are borrowing more than 80% of the value of the property, mortgage insurers require that you have saved at least 5% of the purchase price as genuine savings.
Pre-qualification is a quick and easy step in a loan application that provides you with an estimate of your borrowing capacity. In other words, pre-qualification is only a general indication of how much you can borrow, that is usually obtained via a phone call or online application. To learn more, click here.