First home buyers
Where do I start?
Buying your first home is exciting, but it can be a little scary too. With so many things to consider it’s important you get good information from the beginning. We’re here to help guide you through the process every step of the way.
Although the best thing you can do to get started is request a free appointment with one of our mortgage advisers, this quick guide answer most of your initial queries.
You can also email firsthomebuyer@ExpressMortgageMarket.com.au for a fast answer to any questions.
How much deposit do I need?
Generally, most lenders will require that you have about 5% of the proposed purchase price in cash, however some require less. Although they like to see that you have a good saving history over 6 months, the actual deposit can be a cash gift from family and friends.
Don’t forget: you’ll also need to allow for legal costs, stamp duty and possibly Lender Mortgage Insurance if you are borrowing more than 80% (this cost can often be funded from the loan as well).
An Express Mortgage Market Adviser can help you structure a savings plan, and we can also help you access financial assistance provided by Australian governments.
Do I qualify for financial assistance from the government?
There are some substantial forms of government assistance available to most first home buyers.
1) First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off State Government grant usually of $7,000 available to first home buyers who intend to live in the home they’re purchasing. However, in response to the global financial crisis, the Federal Governemnt is making up to $21,000 available undeer this scheme until June 30th, 2009. It is administered by the State Governments and is usually paid at settlement of the loan. Certain conditions do apply, and it’s a good idea to check if you’re eligible first. You can discuss this with your Express Mortgage Market Mortgage Adviser, or click here to check online: www.firsthome.gov.au.
In addition, the NSW State Government is now also contributing an extra $3,000 for First Home Buyers until November 10th, 2009, making the maximum possible grant available in NSW a total of $24,000.
2) First Home Saver Accounts (FHSA)
The very first step toward home ownership is usually the saving of a deposit or contribution towards the purchase. To assist with this, the Federal Government will introduce First Home Saver Accounts from October 1st, 2008.
This has been designed to further boost savings for a first home deposit through tax concessions and Government contributions, delivering higher returns versus conventional savings accounts.
If you are aged between 18 and 65, have never bought or built a first home before in Australia and have never previously opened a FHSA, you are likely to be eligible to take advantage of this investment scheme.
To understand your eligibility for this first home owner saving program, speak to local Express Mortgage Market Mortgage Adviser for further help and information.
Key benefits
- No minium deposit required to open account
- Limit of $75,000 on overall account balance
- Flat Government contribution of 17% paid on first $5,000 of individual contributions made each year
- Government contributions are tax free
- Interest earned taxed at 15%
- Can still claim the First Home Buyers Grant (FHOG) in addition
- Available through public-offer superannuation providers, life insurers, friendly societies, banks, building societies and credit unions
Potential drawbacks
- You must contribute at least $1,000 in at least four separate financial years before you can withdraw your funds
- You must use your fund to purchase or build a new home. The only alternative is to switch the entire amount into your superannuation fund
- You must live in the home for at least 6 months within the first 12 months of purchase or completion of construction
For advice on whether opening a Government first time buyer savings account is the best approach for you right now, contact your local Express Mortgage Market Mortgage Adviser who can talk you through all of your options.
To find out more about the FHSA, you can also visit the Government’s website at www.homesaver.treasury.gov.au
How much can I borrow?
How much you can borrow will be determined by a range of factors including your monthly income, regular expenses, and the amount of money you intend to contribute towards the purchase. For an assessment of how much you can borrow go here (link to form)
Which loan is best for me?
There are literally hundreds of loans available across dozens of lenders, and many of these have been designed with the First Home Buyer in mind. The best one for you will ultimately be determined by your individual needs and objectives.
Your local Express Mortgage Market Adviser will work with you to develop a shortlist of the best lenders for your particular circumstances. Using our leading edge software, your adviser will compare rates, fees and features to help you select the right loan for you.
What do I need to do now?
Request an obligation free appointment with an Express Mortgage Market Adviser or just call 1300 663 997. We’ll come to you at a convenient time and help you get organised so you’re ready to buy.
Before you meet with an adviser you should consult our checklists page so you’re ready more information.
Or perhaps you’ve just got some quick questions? Feel free to email us at firsthomebuyer@ExpressMortgageMarket.com.au
What happens at an appointment?
When you request an appointment, a Express Mortgage Market Mortgage Adviser will call and arrange a convenient time to meet. They'll come to you, and the appointment will take about one or two hours.
During the meeting we will:
- Discuss your needs and objectives
- Review your finances
- Confirm your borrowing capacity
- Review lenders
- Develop a shortlist of your preferred lenders
Using our special software we’ll show you how each loan compares and help you choose the loan that suits you best.
We'll also talk you through the application process and, when you're ready, handle all the paperwork.