BUYING YOUR FIRST HOME
First Home Buyers Frequently Asked Questions
First Home Buyers Grant
The FHOG scheme is a national scheme funded by the Federal Government, but administered through each state or territory Revenue Office.
In some states additional bonuses may be available.
Please call First Choice Mortgage Brokers to discuss your opportunities and for assistance in accessing the FHOG.
Please note that each state has different maximum property prices that you can consider before the first home owners grant isn’t applicable.
How do I know if I am eligible for the First Home Owner Grant?
As a basic rule, you are eligible if you are an Australian or New Zealand citizen or permanent resident, buying or building your first home, with the intention of occupying it as your principle place of residence within 12 months of the settlement and living in it continuously for at least 6 months.
Please note that if you are buying the property in conjunction with other people, they must also meet the first home buyers criteria for the grant to be eligible.
How do I apply for the grant?
Our team at First Choice Mortgage Brokers will complete the application on your behalf. Usually the first home owners grant application is submitted whilst the loan is proceeding so that the funds are available for settlement of your home loan. In some cases the grant can be submitted post settlement and the funds deposited into your bank account. We will assist you with the application and submit the forms on your behalf, this is part of our ongoing commitment to assisting you in purchasing your first home.
How much can I borrow?
How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income and what expense commitments you have.
It will also vary from lender to lender. First Choice Mortgage Brokers will give you a complete individual assessment when we discuss your options.
How much will I need to save for a deposit?
The deposit required depends largely on the type of home loan and, of course, the lender you select.
As a general rule, if you are planning to live in the property then you require to have generally 5-7% of the purchase price as a deposit.
How much money will I need to set aside for stamp duty?
Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory of the property location.
Based of your situation, one of our mortgage consultant will calculate the stamp duty fee that may apply.
What other expenses will I need to pay besides mortgage & stamp duties?
You may have to consider additional funds for the following:
- Building and pest reports
- Valuation fees
- Lenders mortgage insurance (LMI)
- Solicitors fees
- Utility connection fees – phone/gas/electricity
- Council and water rates
- Removalist costs
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) premiums are payable by the borrower when the amount borrowed is above a certain percentage of the lender’s valuation of the property.
Majority of lenders will allow you to include the LMI premium to your home loan amount and others may require you to pay it up front. It’s important to note that the LMI does not protect you in the event that you are not able to make your mortgage repayments; LMI protects the lender from any losses resulting from late or unpaid loan repayments.
Contact First Choice Mortgage Brokers to find out more about lenders mortgage insurance.
How do I choose which home is best for me?
The Australian Mortgage market can be a perplexing web of options, home loan interest rates, lenders and products. Here at First Choice Mortgage Brokers we know it can be a difficult decision for a first home buyer to navigate through the various decisions on your own.
Our specialist mortgage team are here to assist you throughout the entire home loan process.
What are the steps in the home loan approval process?
Please find the following basic guide for the home loan process – please note that the stages might vary slightly between different home loan lenders:
Step 1: Speak with a First Choice Mortgage Broker who will consider your financial situation and provide you with a home loan that suits your individual needs
Step 2: Our home loan consultant will collect your supporting documents and take your application for the home loan.
Step 3: Your home loan will be submitted to the lender we agree on for their consideration.
Step 4: If the lender requires no additional information the loan will be pre-approved and a valuation will be ordered on your new purchase property
Step 5: Valuation returns and the lender accepts the property as security, your loan is submitted for formal approval
Step 6: Your loan is formally approved! We provide you with an approval letter so that you can exchange on your new property. We also assist you with your first home buyers grant and submit this to the lender on your behalf
Step 7: Mortgage contracts are sent to you in the mail – you sign them and send them back to the lender
Step 8: Your documents are checked, the lender books in a settlement date with your solicitor and your loan settles
What Should I Do Now?
You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455