Buying your first home is very exciting and is probably the biggest purchase you will ever make.
We are here to help you take that big step. As a first home buyer, you probably have a million questions running through your head – how much do I need for a deposit? Do I qualify for a first home owner grant? What will be my monthly repayments? Do I want a fixed or variable loan?
In some cases, clients are not sure of what they want until some of the possibilities or ideas they have are brought to life as potential scenarios. We will inform and educate you on what might be possible in securing your financial future, and go through the advantages and risks of each scenario to help you make an informed decision, with a clear idea of how to manage things going forward.
Obtaining finance for a home purchase can be a complicated process, and there are certain criteria that lenders require borrowers to meet before they will agree to lend you money.
There are a number of criteria that lenders assess each application against. The main criteria are explained below:
One of the factors used to assess an application, is the lender’s judgement on the ability of the applicant(s) to make the loan repayments without experiencing financial hardship. The lender will consider a range of factors including income, expenses and other liabilities in order to determine whether or not the applicant will be able to comfortably make the loan repayments, even in the event of interest rate increases.
Loan to value ratio (LVR):
Another factor to consider is the Loan to Value Ratio, or ‘LVR’. This is the amount you are planning to borrow as a percentage of the value of the property. Any savings the borrower has can be used to reduce the amount being borrowed which will in turn reduce the LVR.
The credit history of the applicant(s) is also considered. If an applicant has previously defaulted on a loan, has missed a credit card payment, or has been declared bankrupt, this will reflect on their credit history and will be accounted for when the lender is assessing the application
Verification of financial information:
Upon applying for a loan, borrowers will be required to provide verification of their financial information including proof of income from their employer, bank statements demonstrating savings, and details on other assets and liabilities. The lending institution will require such information to ensure that the applicant meets the appropriate lending criteria.
First Home Owner’s Grant (FHOG)
When you purchase your first home or property, you may qualify for the First Home Owner Grant (FHOG). Under the scheme, a one-off grant is payable to first home owners that satisfy all the eligibility criteria.
If you qualify for the FHOG, this money can be used towards your purchase costs. Detailed information about the FHOG for each state and territory is available from www.firsthome.gov.au.
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Our advisers will discuss your personal circumstances with you, such as your income, outgoings, future plans and savings, together with the end to end process and steps involved in buying your first home, – we seek to understand your short, medium and long term goals.
Visit our Loan calculators today and take the next step by clicking the “Quick Quote” Button and our finance advisers will then get to work on sourcing you a tailor made Home Loan package from our trusted panel of lenders and will work tirelessly to get you the right solution.