With so many different loan
products on the market, finding a home loan is not as simple
as it used to be. There is a range of options available to
you that may save you money, provide you with greater flexibility
and peace of mind.
Lending Specialist consultants use their expertise and experience
in the home loan market coupled with a unique computer software
program that enables them to compare hundreds of loans in
a matter of minutes. Our consultants will then be able to
provide you with a short list of loans that are both competitive
and suitable – simplifying the loan selection process.
First
Home Owners Grant ? FHOG
The Federal Government
introduced the FHOG in 2000 to assist
First Home Buyers meet the cost of buying
or building their first homes.
It is a non means-tested
grant of $7,000 that can even be used
to form part of the deposit on your first
home purchase.
Lending Specialist consultants can help you
to access the FHOG.
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.
This one-off grant of
$7,000 is available to First Home Buyers
intending to live in the home they are
buying. Basically, you are eligible if
you are an Australian citizen or a permanent
resident who is buying or building your
first home in Australia and intend to
occupy it as your principal place of residence
within 12 months of settlement. Note that
if you are purchasing the property in
conjunction with others, they must also
meet the same criteria for the grant to
be available.
The amount you need as
a deposit will depend on the type of home
loan and the lender you select. Generally
you will require a minimum of 5% of the
property value.
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 the
property is situated in.
What
Other Expenses Will I Need To Pay Besides
Mortgage & Stamp Duties?
As a rough guide, you
should budget for between 5-7% of the
purchase price, in addition to your deposit,
to cover fees and charges. While mortgage
and stamp duties will make up the bulk
of this 5-7%, the balance may include;
* 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
When deciding on the
area to live in, apart from considering
proximity to family, friends and work
commitments, you will obviously need to
think about prices. Prices will vary greatly
from suburb to suburb.
