First home buyer advice
How much do I need to save for a deposit?
This can depend on the type of loan you are looking for and the Institution you are lending from, however as a general rule if buying to live in you will require 5%of the purchase price. If investing in property ideally 10% of the purchase price is what you need. It is possible to purchase with less however there will be some guidelines around this. If you would like one of our consultants to find you the best first home buyer home loan click here. Alternatively start your first home buyer home loan search here.
How much can I borrow to buy my first home?
This will differ from lender to lender and ultimately will come down to your capacity to repay the home loan however to give you an idea have a quick look at our borrowing power calculators.
Which is the best home loan for me?
It all depends on your situation and your circumstances however a great start is to compare the first home buyer home loans listed on ratesonline.com.au. However if you would like one of our consultants to find the loan that best suits your needs click here.
How much Stamp Duty do I need to pay?
Each state or territory has their own individual rules and calculations around the tax. It is based on the selling price and therefore can be significant however some states and territories offer further concessions on the duty payable. A good starting point is to use our stamp duty calculator to find out what you need to pay.
Am I eligible for the First Home Owner Grant?
If you are an Australian citizen or permanent resident with the intention of living in the home you build or buy within 12 months of the settlement, then you are eligible. For further information on eligibility and grants contact your local State Revenue Office.
What other fees do I need to pay when buying my first home?
These additional fees and charges may include:
- Building inspection
- Solicitor/Conveyancing fees
- Insurance including Lenders Mortgage Insurance (LMI)
- Valuation fees
- Connection fees - phone/gas/electricity/internet/foxtel
- Removalist fees
When borrowing more than 80% of the value of the property most banks and financial institutions require LMI. As the name suggests mortgage insurance protects the lender if the borrower defaults and the property sells for less than the outstanding balance on the loan. The borrower remains liable for any balance owing under the contract even if the insurer has paid that amount to the lender. This insurance gives buyers the opportunity to purchase a property with a smaller deposit and the amount is added to the loan.
What documentation will I need to apply for a home loan?
When submitting your home loan application obviously you need to produce supporting documentation that confirms your identity and income. These documents will include:
- Bank statements
- Birth certificate
- Tax returns
- Driver's license
- Recent pay slips
View further information on a document checklist.
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