First Home Buyers

Here are a few simple questions to ask before you get started:

• How much can I borrow?
• What deposit will I need?
• Do I qualify for the government’s First Home Owners’ grant?
• What are my repayment amounts?
• What do I need to do now

How much can I borrow?

How much can you borrow mostly depends on your current household income and what monthly expenses you have, this includes credit card limits and other debts you have.

There are other considerations the lender makes including Credit history, number of children you have, term of the loan e.g. 25yr – 30yr loan, being self employed or how long you have been employed by your current employer.

If you pass the lenders general criteria points I made above it then determines your borrowing limit, Lenders use what is called the debt-service ratio – the ratio of loan repayments to your gross income.

To discover your borrowing potential Access One can find out for you with our Online Mortgage Report Card.

What deposit will I need?

Traditionally, you’ve needed at least 20% deposit to get a Home Loan. But now days it’s more common for a 5% deposit. This deposit can come from family or friends but most lenders will want you to at least show 6 months’ regular savings history of the deposit.

Also, you’ll need the other costs in buying a home e.g. legal fees, stamp duty and possibly a one-off Lenders Mortgage Insurance fee (if you are borrowing more than 80% of the property value).

The First Home Owners Grant can also in some cases goes towards the deposit but more commonly pay for those other expenses listed above like stamp duty and legal fees etc.

Access One can can help you in outlining all your costs in purchasing a home and then structure a savings plan for your deposit and organise the first home owners grant when needed.

Do I qualify for the First Home Owners’ grant?

The First Home Owners Grant “FHOG” is available to people buying or building their first home and who meet the following criteria:

Each applicant is a natural person (ie not a company or trust.)

At least one applicant must be a permanent resident or Australian citizen.

Each applicant must be at least 18 years of age.

All applicants have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before.

At least one applicant will occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home.
How do I apply?
Access One has all the relevant applications for all states for the FHOG when completing the lenders application we fill out the FHOG Application as well and submit it with the lenders application.
When will I receive the payment?
– For the purchase of an existing dwelling, payment will be made at settlement.
– For a building contract, payment will be made on the first progress payment.
– For an owner-builder, payment will be made on certificate of occupancy/completion.

What are my repayment amounts

Your question should not be ‘How much can I borrow?’, but ‘How much should I borrow?’. And only you can ultimately make that decision.
To learn more, talk to an Access One loans manager to discuss what you can afford then we can help plan your budget. Or check what the repayments will be using our handy repayments calculator.

What do I need to do now

Want to make a really informed decision? Be armed with as much relevant information as possible before making your big decision? You can access extensive research on both real estate and finance in general through Access One, and it’s free. If you are considering purchasing call Access One 1300 722 278 or get a free Mortgage Report Card which will outline everything you need to buy your first home.
Or contact our home loans manger for a no obligation appointment.