Buying First Home

As a basic rule, you are eligible for the first home owner grant if you are an Australian or New Zealand citizen or permanent resident. Buying or building your first home, intending to occupy it as your principal place of residence within 12 months of the settlement and live 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 buyer’s criteria for the grant to be eligible.

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 mortgage brokers ongoing commitment to assisting you in purchasing your first home.

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 your expense commitments.

It will also vary from lender to lender. First Choice Mortgage Brokers will give you a complete individual assessment when we discuss your options.

The deposit required depends largely on the type of home loan and, of course, the lender you select.

As a general rule, if you plan to live in the property, you require to have generally 5-7% of the purchase price as a deposit.

Stamp duty is a tax levied on the purchase of a property. Stamp duty is calculated according to the purchase price of the property and the state or territory of the property location.

Based on your situation, one of our mortgage brokers consultants will calculate the stamp duty fee that may apply.

You may have to consider additional funds for the following:

• Building and pest reports
• Valuation fees
• Lenders mortgage insurance (LMI)
• Solicitors’ fees
• Insurances
• Utility connection fees – phone/gas/electricity
• Council and water rates
• Removalist costs

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.

The majority of lenders will allow you to include the LMI premium to your home loan amount, and others may require you to pay it upfront. 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.

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.

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.