Buying your very first home is an exciting time- but it can feel little overwhelming. but fear not! With the right information and guidance, you can navigate the process with confidence.
AT Golden Mortgage, we believe that starting off with the right information is crucial. Our dedication is to serving the needs of first home buyer, to achieve to their first home goal with ease and comfortable. Let’s us guide you, everything you need to know to kickstart your homeownership dreams.
Planning is always one of key element to any success. As a first home buyer, this is important for you to plan well ahead before you start your home buying journey.
Establish Your Goal
It is important to set up first dream home goal and set timeframe for homeownership to make it reality.
Create Budget:
Everyone’s situation is different. How much you can afford to borrow depends on your:
Be realistic about what you can afford. Mortgage interest rates are on the rise, so give yourself some breathing room.
As a first home buyer, knowing what you can afford to repay is the best place to start this journey. You will need to set a budget for the property to intend to buy.
Use the mortgage repayment calculator that can help you to work out the monthly repayment of potential new purchase.
Use the budget planner to create the budget. To find out, how much you’re earning and expenditure on your daily expenses. Then try to reduce unwanted expenses and try save money toward your deposit for your dream home.
Set Goal to Save Deposit:
No matter what type of home you want to buy, you will need to have deposit.
Often get asked – how much deposit do I needed? I am sure you have the same question?
Typically, lenders prefer borrowers with a deposit of at least 20% of the property’s value. That means if you’re buying a $500,000 home, you’ll need a $100,000 deposit.
If 20% deposit is out of reach, you may be able to get a home loan with a lower deposit but lenders will charge Lender Mortgage Insurance (LMI)
What is LMI?
LMI stands for Lenders Mortgage Insurance, and it is designed to cover the bank if you have to default on your loan. Lenders Mortgage Insurance allows people like first home buyers to purchase a home with a less than 20% deposit. The amount of LMI you will pay depends on the size of your deposit, so it’s in your best interest to save the biggest deposit possible.
But good News is that Eligible first home buyer, without paying LMI if your deposit is as minimum as 5%, with help first home guarantee scheme (FHGS).
Note- Eligibility and No. of Places criteria, T&C apply.
For more information, please visit Housing Australia website: https://www.housingaustralia.gov.au
And also state govt. grants to first home owner can also help (FHOG). Every state has different grants. Eligibility criteria apply.
Genuine saving is something that bank consider when assessing loan application.
Saving for a deposit is often the biggest hurdle for first-time buyers. Fortunately, Federal, state or territorial government offers various incentives and schemes to assist you in achieving your homeownership goals sooner. Familiarize yourself with programs such as the First Home Owner Grant and the First Home buyer guarantee Scheme, which can provide financial assistance or reduce the burden of upfront costs.
Do your own research to find out the following things:
First Home owner Grant:
The first home owner Grant (FHOG) scheme was introduced on 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
Under the scheme, one-off grant is payable to first home owners that satisfy all eligibility criteria. In Queensland, the first home owner grant gives eligible first-time home buyers $15,000 or $30,000 towards buying or building a new home.
The Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to buy a home sooner. The Scheme is administered by the Housing Australia on behalf of the Australian Government.
The Scheme includes three types of Guarantees:
First Home Guarantee (FHBG) – supporting eligible home buyers to buy a home sooner, with a deposit as little as 5%. For FY2024-25, 35,000 places are available.
Regional First Home Buyer Guarantee (RFHBG) – supporting eligible regional home buyers to buy a home sooner, in a regional area, with a deposit as little as 5%. For FY2024-25, 10,000 places are available.
Family Home Guarantee (FHG) – supporting eligible single parents and eligible single legal guardians of at least one dependent to buy a home sooner, with a deposit as little as 2%. For FY2024-25, 5,000 places are available.
T & C and Eligibility Criteria apply and subject spot availability
Resource -Housing Australia: https://www.housingaustralia.gov.au
Stamp duty, sometimes called land transfer duty, is a tax charged for property by each Australian state and territory. Cost can vary from state to state.
You should confirm the government costs, duties payable and any applicable exemption or concession information with the relevant government authority. If you are buying your first property to live in, you may be eligible for a stamp duty exemption or concession.
Buying property involves legal work, it recommends to hire solicitor or conveyancer for their service. Seek independent legal and financial advice before signing any contract.
Bank Fees: This includes any application or valuation charges and can vary between lenders.
Stamp Duty: This is a government cost that is usually the biggest expense outside the purchase price of the property. Stamp duty varies between the states and territory. Your Mortgage Broker can assist you in calculating this amount.
Lenders Mortgage Insurance (LMI): This is a cost to you, the borrower, that is generally charged by the bank if you have less than a 20% deposit on the property. It can vary between lenders and your Mortgage Broker can assist you in calculating this amount.
Government Fees: These include things such as mortgage registration, transfer fees and title searches.
Legal Costs: Either a conveyancer or solicitor will review your Contract of Sale and ensure appropriate checks are conducted on the property with local government agencies.
Property Checks: It is always recommended that prior to purchasing a property, you hire professionals to inspect the property for structural defects, concerns, pest infestations, anything that could potentially cause damage to your property.
Removalist Costs: Will you do this yourself or hire a company?
Utilities: Set up of utilities which may include a connection fee and up to 2 months of charges as they may charge in advance.
Work with Your Mortgage Broker.
A mortgage broker is act as an intermediary between you and the lender by completing and packaging your loan application.
At Golden Mortgage, We will
Let’s Talk to me about your scenario, if you have any question just Let me know.
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Get the pre-approval & Explore the loan option:
Purchasing a property is a bit of a balancing act, and before you start looking at properties and suburb where you about to buy, it is important that you need to know your home loan borrowing capacity means how much lender will lend you money towards the purchase price of your home but hasn’t proceeded to full or final approval.
Getting pre-approval for your home loan allow you to look – and enquire- with confidence.
When you apply for pre-approval, the lender will take into consideration your overall financial situation, and typically need to verify your identity, income and expenses. This involves providing paperwork such as payslips and proof of any other sources of income such as bonuses or of rental income, plus details ongoing expenses.
The lending criteria also includes providing documentary evidence of all your assets and liabilities. While assets can range from savings and superannuation to investment properties, liabilities can include personal loans, credit card statements and Buy-Now-Pay-Later debt.
At this stage, the lender will also do a credit check – this basically means they will check your credit history to get a clear picture of your past credit accounts and repayment behaviour.
Apart from ensuring your ability to make the loan repayments, these checks and balances could reveal things like an old credit card debt or something similar, that you may have forgotten about at an earlier stage.
Once it’s established, you’re a suitable candidate for a loan, the lender would issue you a written pre-approval clearly outlining the conditions. How long this process takes usually depends on your situation, but the lender would keep you updated on the progress of your application. And this doesn’t cost anything – it’s free from obligation for both parties.
As a mortgage broker, I have an access of various of home loan products. I will do the leg-work for you by comparing each home loan and recommend which would be best suited to your circumstances.
To find out your borrowing capacity contact me, as well as, will organise a pr-approval for you after understanding your objectives, requirement and circumstances so that you can start looking your first home with confidence, this service at no cost.
A variable rate home loan is a home loan with an interest rate that may change over time. If you choose a variable rate home loan, you may be able to take advantage of any interest rate decreases over your loan’s term. If your rate decreases, it means you pay less interest on the home loan balance.
On the other hand, you may also find that your rate increases, which would involve paying a higher interest rate and regular repayment amount than at the start of your loan term.
A fixed interest rate has a fixed interest rate and set repayments that won’t change during the fixed term, usually fixed term 1-5 years. This option as it makes it easier to budget for the repayments well ahead.
You may need to pay break costs if you close a fixed rate mortgage account before the fixed rate term has ended. Paying your loan down completely before the end of the fixed term, switching to a variable rate or making more than the maximum amount in extra weekly, fortnightly or monthly repayments are all things that could incur break costs.
Redraw allows you to access additional payments that you’ve made on your home loan.
It works like a transaction account in that you can put money in and take money out any time, but it’s linked to your home loan. The money you keep in an offset account can help reduce the overall interest you pay on your loan.
Having flexibility to repay your loan either weekly, fortnightly or monthly.
Now it’s time to start looking for your dream home. And exploring the dream house that fit into your budget.
Before diving headfirst into the world of real estate, it’s crucial to understand the current market conditions. Keep an eye on property trends, median prices, and emerging neighbourhoods to make informed decisions about where and when to buy. Make a list of your must-have features and prioritize them accordingly. Remember, finding the perfect home is a journey, not a race.
It is important to engage with the professional like real estate agent to latest real market info like where you want to buy your first home.
Remember that the real estate agent you’re speaking with are ultimately employs by the seller. It’s good to negotiate with the sale agents.
One tip I always tell my clients is to attend local property auctions or open home inspections in the area you have in mind. This will give you a very clear idea around what the reasonable market price is for the properties you like and will also teach you how to manage an auction without bidding too high.
Finding a Conveyancer / Solicitor
When you’ re purchasing your first home, you should consider hiring a skilled conveyancer.
Conveyancing is the process of transferring ownership of a legal title of the land to the new owner, whether it be a person or other legal entity.
Conveyancer / Solicitor:
– Review, prepare and lodge all the legal documents, such as the contract of sale and the Transfer of Land instrument.
– Research property titles; check for any third-party rights to enter or use the and, such as easements
– Help you understand exactly what you’re purchasing. And deal with the vendor and estate agent on your behalf
Negotiating and Making an Offer:
Once you’ve found a property that ticks all the boxes, it’s time to negotiate with the seller and make an offer. Work closely with your real estate agent to craft a competitive offer that reflects the property’s value and aligns with your budget. Be prepared for counteroffers and don’t be afraid to negotiate terms until both parties reach a mutually beneficial agreement.
Congratulations! Your offer has been accepted, and you’re one step closer to becoming a homeowner. Now it’s time to finalize the details and complete the necessary paperwork. Work closely with your conveyancer and lender to ensure a smooth settlement process. Be prepared for inspections, appraisals, and other final steps before receiving the keys to your new home.
Once settlement is complete, it’s time to celebrate your achievement and start making memories in your new home. Take the time to personalize your space, unpack gradually, and explore your new neighbourhood. Remember that homeownership is a journey, and there will be challenges along the way, but with determination and perseverance, you can turn your dream of owning a home into a reality.
Let me help you turn your property dream into a reality.
I invite you to book a obligation free chat. where I can answer all your questions and tell you how soon you can become the owner of your dream home.
I look forward to speaking with you shortly.
Thanks.
Manpreet Singh
0468 428 286
Credit Representative Number 545482 is authorised under Australian Credit Licence 382 324 (ABN 59 662 493 889).
Your complete financial situation will need to be assessed before acceptance of any offer or product.
