Buying your first home whether it be an investment or to live in is both very exciting and daunting. It’s important that you receive the right advice, as it will likely to be one of the biggest investments you’ll make. As a result, i have compiled our top 5 essential questions and answers to guide you.
1. How much deposit will i need? When it comes to a deposit most loan products allow you to borrow up to 95% of the property value. This means you will at least need a deposit of 5%. For example on a $500,000 loan you will need a deposit of at least $25,000.
If you are struggling to obtain a deposit there are a few things you can do:
2. What is LMI and how much is it? Lenders Mortgage Insurance is a fee charged by finance lenders. It’s generally charged when you have a deposit which is less than 20% of your property’s purchase price. LMI acts as a security to the lender, who considers you a high risk borrower with anything under 20% deposit. LMI protects the mortgage lender in the event that you, the borrower, defaults on their loan.
For example: If your loan amount is $475,000 and the property value is $500,000 your LVR (Loan to Value Ratio) would be 95%. With LMI costing you approximately $15,960. This $15,960 may be an extra upfront cost or it could be capitalised on the Loan product and paid off in monthly instalments over the life of the loan.
Speak to us to find out whether you qualify for a home loan product that capitalises on LMI.
3. How much does a home loan cost? Home loans aren’t always about the property purchase amount and the interest you pay. A home loan has a number of other associated fees that you must be mindful of. Such as:
– Council rates
– Strata fees for community managed properties
– Utility costs such as water, gas and electricity
– Home insurance
– Home improvements and renovations
Ask us to help you find a product that keeps as much money in your pocket as possible.
4. Can I get a First Home Owners Grant? The First Home Owners Grant (FHOG) is a one off Government grant designed to help first home owners get into the property market. The FHOG varies significantly across Australia. Currently in NSW the FHOG is $10,000.
In order to be eligible for the FHOG you must meet certain criteria. Get in contact with us today and find out whether you are eligible. You may also be eligible for additional grants and stamp duty exemptions as a first home buyer.
5. What documentation is required? You will need to provide documents that show evidence of your income and identity. These documents can include the following:
If you’re currently in the market for a home loan or would like further information around the points above, please give our Broker Rudy a call on 0414 856 713 or email myself at firstname.lastname@example.org
Buying your first home whether it be an investment or to live in is both very exciting and..
Step 1: Get or keep your credit score in good standing Your credit score is one..
Like everything in life, happiness is often found in balance. Paying off your mortgage early is no exception...