First Home Buyers

Buying or building your first home can be very exciting but it can also be an overwhelming experience. It will probably be one of the largest financial commitments you will make in your life, so it pays to be well prepared and get the right advice.

Luckily here in Australia we are blessed with various incentive schemes where First Home Buyers can access funds to assist in the purchase of their home. These may come in the form of a discount on government duties, cash incentives towards building your first home or cash to assist in a purchase of a new home.

All the different states in Australia have different legislation and policies and it can be a time consuming activity to apply for the grants direct though the respective State Revenue Offices.

Sunraysia Home Loans submits your application for the grant along with your home loan application to leave you to relax and enjoy the experience of purchasing or building your first home.

For detailed information on each state please see the links on this page or book an appointment with us today.

How much can I borrow?

This is usually the first question that comes to most First Home Buyers Minds and unfortunately the answer is not a “One size fits all” response.

In terms of getting your first home there are two equally important aspects that the banks will look at when considering lending you their money.

Deposit/Genuine Savings

Having a deposit forms a major part of the equation mainly

because both the lender and their insurance company

(Lenders Mortgage Insurer) feel much more comfortable in

lending out money when they can see you have demonstrated

a good savings pattern.

As a general rule Banks and Lenders will loan 95% of your house value and you will need to chip in the remaining 5% as well as cover legal fees and government duties (or your grant may help to cover part of these costs).

A Total of 10-12% deposit will usually cover everything depending on the lenders policy and the state you are purchasing in. In most cases you will need to show savings in your bank account over a three month period; this is called Genuine Savings and is required when you do not have a 15-20% deposit.

Home Loans

First Home Buyers

Debt Consolidation

Refinance

Construction/ Renovation

Property Investment

Types of Genuine Savings Lenders will consider?

Savings pattern (established over a period of 3 months)
Cash (acceptable if held in an account for at least 3 months)
Equity in an existing property
Shares (held for at least 3 months)
Term Deposit (held for at least 3 months)
Gift (held in the applicants account for at least 3 months)
Inheritance (held in the applicants account for at least 3 months)

Some lenders may even consider cash held in your account that you have held for less than three months if you are renting through a licenced real estate agent and can show a good rental history- after all if you can show you can pay rent you usually are a sure bet for paying off a loan.

First Home Buyer Fact Sheets