Tips on how to get into your first home sooner
Saving for a house deposit can seem like an overwhelming prospect at times and feels like it may take forever. Here are some useful tips to help you get into your new home, sooner.
First Home Owner’s Grant
If you haven’t owned a home before, you may be eligible for the First Home Owner’s Grant. Visit your state’s relevant Government website to determine your eligibility.
Reduced Stamp Duty and Buying off the Plan
- When you buy an existing home, you are charged stamp duty on the entire value.
- Some State Governments are waiving Stamp Duty on newly built homes to encourage development.
- If you buy off the plan, you may also be able to buy now but pay at a later point in time. You will still need to pay a deposit however you’ll make great gains by being able to save longer term for your purchase.
Building Option – A turnkey solution
One of the reasons so many first home owners feel anxious at the thought of building their first home is that there is so much to do after construction is complete.
Some builders are able to create turnkey homes that are fully completed for you which include things like driveways, paths, floor coverings, landscaping and other fixtures.
Ask your builder if this option is available for you. If it is, once the construction is complete, all that is left to do his move in. Quite often, costs will all be up front too so you will know what the outlay is you need to make.
First Home Loan
All home loans are different and it’s important to find the one that’s right for you and your current and long-term goals. Utilising a Mortgage Broker is a great way to secure the best loan rate for you and there’s no cost to do so – they are paid via a commission structure with the banks.
Most banks want to see that you have saved at least 5% of the purchase price as your deposit. The amount of money you need to have should be genuine savings shown over a period of at least 3 months in your bank account.
If you’ve been renting for the last 12 months through a Property Manager, you can use your rental payments as another way to strengthen your application.
If you’re lucky enough to have your parents help you, they might offer to go guarantor for you and use the equity in their own home as security for your first home purchase. By doing this, you may also avoid Lender’s Mortgage Insurance (LMI).
Buying your first home can be daunting but with the right people by your side, it will be an exciting and empowering time. At Financial Scope Melbourne, we work with you to assess your needs and requirements and provide the right solution based on these.
Call us today for a free chat with an experienced mortgage broker and make your first home purchase a reality.
Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.
Clint Thomasson
Clint has over 14 years experience in Financial Services working with major corporates including NAB, AMP, ANZ, and AXA. With a passion for Mortgage Broking, coupled with his outstanding interpersonal skills, Clint’s drive is all about matching your needs with the right financial solution. Whilst many businesses offer Finance Broking services, the difference you’ll find with Clint is his ability to listen, engage, retain knowledge and accurately match your requirements. Not only that, but he’s also a very friendly and genuine person with a great work ethic – you’ll have full confidence that he will deliver in a timely and highly efficient manner, every time.
