Home Loans For First Home Buyers

First time around, the whole home buying experience can raise so many questions and cause so much stress! It’s hard to know where to start and who you really should be accepting advice from.

Money Heroes can simplify the process for you by:

• Identifying the amount of money you would need to complete your purchase, including any stamp duties and lenders fees
• Explaining in plain English the different types of home loan products available and most importantly, how to use loan features to their maximum benefit
• Calculating your repayments
• Helping you complete the lenders paperwork
• Helping you determine your eligibility and apply for the First Home Owners Grant

If you haven’t yet found your ideal property, we can even arrange a home loan pre-approval for you so you know your borrowing potential and what to expect. This will give you confidence to get out there and make that offer on your dream home!

Common Questions From First Home Owners:

How will I know how much I can borrow and how much deposit I will need to contribute?

• Your local Money Hero can come to you and take you through our home loan comparison software. This software compares products and features available from different lending institutions. It will also let you know how much each lender will be prepared to lend you, using the information you provide us. This may influence your decision as to which lender you would prefer to use.
• The deposit you will have to contribute again varies between lenders. Some lenders will lend up to 95% of the purchase price. In today's market in most cases they will require you to show 5% genuine savings. Others may require a 10% deposit however will waive the "genuine savings" criteria. It is worth making an obligation free appointment with a Money Hero now as you may be pleasantly surprised by the options already available to you.

What is Lenders Mortgage Insurance?

• Don’t be confused by thinking that this insurance will help you if you cannot make your home loan repayments. In fact, Lenders Mortgage Insurance covers the lender in the event you default on your payments and the lender subsequently suffers a loss due to the forced sale of your property. These losses may include loss of principal, unpaid interest, legal fees, selling expenses, repairs, outstanding rates etc. The premium is normally paid by the borrower when the home loan value is more than 80% of the property value (some institutions will cover this for you and in return you will pay a higher interest rate). It can cost thousands, but the good news about Lenders Mortgage Insurance (LMI) is that it generally means you can borrow a lot more against the properties value. This means you could get into the property market much quicker at today’s prices, rather than in two years time.

Your local Money Hero can give you a guide to costs of LMI applicable to the lenders on their panel.

What other costs are involved in the transaction?

• In most instances you should leave enough money to cover the following (on top of any deposit, stamps and Lenders Mortgage Insurance fees):
  • Any applicable lenders application fees
  • Any applicable valuation fees
  • Building and/or pest inspections
  • Legal fees – both your own conveyancing and the lenders legals if they pass these fees on
  • Any council rates adjustments – your conveyancer can give you a guide to this
  • Insurance – building which is compulsory when you have a registered mortgage and contents should you wish to insure your personal belongings.

Your local Money Hero will give you a detailed estimate of all costs involved.

What is the First Home Owner Grant and how will I now if I am eligible?

The First Home Owner Grant is a one-off payment to assist eligible first home owners with purchase or construction costs.

BETWEEN NOW AND THE END OF OCTOBER 2009, THIS GRANT HAS BEEN INCREASED TO BETWEEN $14,000 AND $21,000 - FOLLOWING THIS DATE, THE AMOUNTS WILL BE PHASED BACK TO THE ORIGINAL $7000 GRANT - CALL US NOW FOR DETAILS!!

You may be eligible for this grant if you are an Australian citizen or permanent resident purchasing or constructing your first home in Australia. You must have the intention to reside in this property as your principal place of residence, that is your home, within twelve months of purchase and for a specified period of time. It should be noted that if you are purchasing a property jointly with someone who has already owned property in Australia, this would change your eligibility for the grant.

To asses your eligibility you can contact your local Money Hero who can guide you through the application process and assess your individual needs.

Loan types

Credit Impaired Clients

Self Employed Clients

Application Process

What Paperwork Do I Need to Supply

Want a more comprehensive guide to property?

Click here to request your Free Home and Investment Buyers Guide via Ebook.

To contact your local Money Heroes call 1300 MY HERO

(1300 69 4376) or click here