First Home Buyers

We are able to provide you a very personalized service to help you buy your first home.

We will guide you on the pitfalls of applying for a home loan and assist you with general advice in respect to your buying process.

We will also assist with your First Home Owners Grant application.

A large number of our existing clients are either first home buyers or buyers whom have financed their first home with us and are in the process of upgrading their property or purchasing an investment property.

Our general tips for first home buyers include:

• If you are seeking more than 80% of the purchase price/property valuation, your lender will most likely require you to apply and pay for lenders mortgage insurance. This insurance provides protection to the lender only, the only benefit to you is being able to obtain a loan approval. This can be costly and can often vary substantially from lender (sometimes by $1,000's of dollars). Contact us call us for more advice.
• Your maximum borrowing capacity will vary from lender to lender.
• Some lenders will lend you up to 100% of valuation in which case your mortgage insurance will often be covered by your first home owners grant. Until recent years, the maximum loan was 95% of valuation.
• One particular larger lender will consider providing finance without the cost of mortgage insurance but with a higher interest rate. This might suit people with high borrowing capacity but low savings and wanting to use the first home owners grant for other purposes.
• Be careful of loans advertised to provide 105% or more of the valuation, with or without mortgage insurance. We usually do not recommend these loans as they can often be very expensive and costly to exit. However, in some situations these loans may be suitable.
• For first home owners, it is very important to get a good understanding of what each of the lenders can offer you as there will be substantial variations in packaging, rates and fees (and mortgage insurance costs
• If you have a close relative who is prepared to assist, we may be able to structure your finance options in order to eliminate lenders mortgage insurance costs. For example, your close relative may be prepared to i) gift you the difference to reduce your need to below 80% ii) should they have substantial equity in their home, a lender may be prepared to take a limited security over their home in lieu of requiring mortgage insurance.

We will seek to understand your circumstances and your preferences and find for you a loan that suits your specific needs. Please feel free contact us for a 'no obligation free appraisal' .