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First Home Buyers

The stress-free guide to buying your first home.

Which Home Loan Is Right For Me?

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.

Charter Group Finance 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.

Benefits – First Home Owners Grant (FHOG), Stamp Duty Discounts

The Federal Government introduced the FHOG in 2000 to assist first home buyers with the costs of purchasing their first home.  It was implemented at the same time as the GST was introduced and was aimed at offsetting the effect this tax could have towards First Home Buyers.

When introduced it was a non-means tested grant of $7,000.  Over the past 15 years we have witnessed many changes to the scheme which at one point saw the initial grant boosted as high as $24,000!!

The FHOG is a national scheme which is administered by each State and Territory.  As such, there are different incentives offered in each area such as reductions in stamp duty or other concessions.

We can help you to access the First Home Benefits you may be entitled to and can discuss your eligibility to these funds, so please call us to have a chat.

If you would like more information, please visit this Government website which has links to each State’s relevant information

First Home Buyer's Frequently Asked Questions.

How Much Can I Borrow?

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.

Am I Eligible For The First Home Owners Grant or Stamp Duty Exemptions?

This one-off grant 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 Grant may only be available if the property is brand new (never been occupied), valued at up to a certain level, or you are buying a house and land package. You may also be eligible for part or full stamp duty exemptions.

What Will My Repayments Be?

It is one thing to work out how much you can borrow, but you need to ensure you can afford your new loan repayments, both at the actual rate, but also if rates rise in the future. The bank will also look to see that you have been able to save this amount each month, or have been paying rent, in order to verify your ‘propensity to repay’.

How Much Do I Need To Save For A Deposit?

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 10% of the property value, plus additional funds for stamp duty and other costs. Some lenders will let you save as little as 7% of the property value.

How Much Do I Need To Set Aside For Stamp Duty?

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. Some States offer exemptions or discounts to First Home Buyers, depending on the value of property being purchased.

What Other Expenses Will I Need To Pay Besides Mortgage & Stamp Duties?

As a rough guide, you should budget for between 5-6% of the purchase price, in addition to your deposit, to cover fees and charges. While mortgage fees and stamp duties will make up the bulk of this 5-6%, the balance may include;

  • Building and pest reports

  • Valuation fees

  • Lenders mortgage insurance (LMI)

  • Solicitors fees

  • Insurances

  • Utility connection fees – phone/gas/electricity/NBN

  • Council and water rates

  • Removalist costs

What Should I Do Now?

You can make an appointment with a Charter Group Finance consultant by calling +61 2 9939 0846 .

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