- We guide first home buyers step by step through the entire loan process
- We do all the paperwork for your loan application
- We ensure you have the expert advice you need to make informed decisions
- We explain all the terms & conditions so you feel confident and comfortable
- We make sure you understand all the costs involved
- We compare the loans of Australia’s leading lenders to find the right options for you
- If you need a Guarantor, we help them understand the conditions and do all the Guarantor paperwork
Buying your first home can be both an exciting and daunting experience and all first home buyers need expert advice and support from someone they can trust. At Assured Lending, our Mortgage Brokers will help you get started and give you all the support you need to make smart decisions for your future. We can give you some initial advice over the phone and are happy to make a free appointment with you, either during or outside of office hours. We understand that purchasing your first property is an emotional and often scary process. We take the fear away and give you the confidence to make informed decisions with expert advice and support.
- Home buying costs
If your purchasing your first property, you need to take into consideration all the costs that will be involved, not just the cost of the property. Click here to see what costs you may be required to pay.
- How much can you afford to borrow?
This is the most important thing you need to know before you start looking at property. How much you can afford to borrow will depend on your current income, your assets, your living expenses and the deposit you have saved. You can get an estimate on how much you can afford to borrow and what your repayments will be using our online Affordability Calculator.
- How much deposit will you need?
The maximum amount most lenders are prepared to offer for an owner occupied home is 95% Loan to Value Ratio (LVR). This means your total loan amount, including all fees, cannot be more than 95% of the value of the property. If you are able to save a larger deposit, you will have more choice with which loans you can apply for and you will be able to get a lower interest rate on your loan because there is less risk to the lender.
If your loan is more than 80% Loan to Value Ration (LVR), you will be required to pay Lenders Mortgage Insurance which is a one off fee paid to the lender as insurance against your loan. This fee will be added to your total loan amount. Commencing 1 January 2020, the First Home Loan Deposit Scheme is an Australian Government initiative to assist eligible first home buyers get into the home ownership market with a deposit as low as 5% and avoid paying lenders mortgage insurance.
If you need help to calculate the minimum deposit you require for a property purchase, give us a call and we will have an experienced mortgage broker do the calculations for you.
- Getting a home loan pre-approval
A home loan pre-approval is a conditional approval by a lender to loan you up to a set amount of money, as long as the property you purchase meets the lenders valuation requirements. A pre-approval gives buyers a realistic budget to work to when looking for a property and is essential if you are considering purchasing at Auction. Most pre-approvals are valid for 3 months and can be renewed if you don’t find a property in this time. A pre-approval does not cost you anything and can be arranged by an Assured Lending Mortgage Broker with over 20 of Australia’s leading lenders.
- First Home Owners Grant & Stamp Duty Exemptions
The First Home Owner Grant in NSW was established to assist eligible first home owners to purchase a new home. The grant provides $10,000 to eligible first home buyers towards the purchase of a new home with a purchase price up to $750,000 if you are entering into a contract to build or a purchase price of to $600,000 if you are purchasing a newly built home.
The government gives you the First Home Owners Grant in the form of cash to add to your deposit and this is usually paid at the time of property settlement or if your building, when the slab is poured. As well as the NSW First Home Owner’s Grant, first home buyers are also entitled to exemptions or concessions on stamp Duty. No stamp duty on existing homes up to $650,000 and reduced stamp duty for existing homes between $650,000 and $800,000. No stamp duty on new homes up to $800,000 and reduced stamp duty for new homes between $800,000 and $1,000,000. No stamp duty on vacant land up to $400,000 and reduced stamp duty for vacant land between $400,000 and $5,000,000
- First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme is an Australian Government initiative to assist eligible first home buyers get into the home ownership market with a deposit as low as 5% and avoid paying lenders mortgage insurance. The Scheme will commence on 1 January 2020 and will be limited to support 10,000 loans each financial year, this means first in best dressed. Applications will not be available until the scheme commencement on 1 January 2020.
There are lenders who will allow customers to take out a loan with a 5% deposit however they do charge Lenders Mortgage Insurance (LMI) to the customer which can run into the tens of thousands of dollars. Usually the only way to avoid LMI is to have a minimum deposit of 20% which can be extremely difficult for first home buyers. This new scheme will guarantee the first home buyer’s loan for the outstanding 15% so no LMI is charged.
From 1 January 2020 an Assured Lending Mortgage Broker can apply for the scheme on behalf of eligible first home buyers with one of the approved panel of lenders. Not every Lender will be approved for the first home loan deposit scheme so it’s important to speak with your Mortgage Broker about eligible loan options that best suit your needs. Click here for more details
- First Home Super Saver Scheme
First Home Super Saver Scheme is an Australian Government initiative that allows eligible first home buyers to voluntarily contribute up to $50,000 to your superannuation and withdraw this amount (plus earnings, less tax) to buy your first home. Voluntary contributions include before-tax contributions, such as salary sacrifice, and after-tax contributions. Because you’re saving through your superannuation, you pay less tax than saving outside of super, which means you can build a larger deposit in a shorter amount of time. If you’re a couple, you can both use the scheme so you could double the amount you save to $100,000.
- Choosing a property
Purchasing your first property can be an emotional experience for many buyers so it’s important to analyse what your needs are before you begin your search. Your property should meet as many of your needs as possible as well as being a good investment in your future. First home buyers are usually on a tight budget so think about which needs must be met and which ones you are prepared to be flexible on.
Have a clear checklist of features that you want the property to have, things like;
new or existing home
type of property – house, unit, duplex
age & condition of the property
number and size of bedrooms
gardens and external space
proximity to local shops, entertainment, schools and transport
quality of neighbouring houses
Download and print a copy of our free Property Viewing Checklist to take with you when you look at potential houses to purchase.
If you find a property you believe may be a good investment, Assured Lending would be happy to provide a free online property report if it is a residential property located in NSW. Click here to order your free report today which will include an estimated valuation on the property, previous sales history, location highlights, comparative sales details for similar properties that have been sold in the same area, median property prices for the suburb, properties sold per year in the suburb, capital growth and more.
- Purchasing a property
Once you’ve found a property, inspected it several times to make sure you are certain and obtained an online property report from Assured Lending, it’s time to make an offer.
Get a copy of the Contract of Sale from the Real Estate Agent.
You need to hire the services of a conveyancer or solicitor to look over the contract of sale to make sure everything is correct. Your contract of sale will include a zoning certificate from the local council, a copy of the title to the property from the Land Titles Office and copies of documents outlining other registered interests over the property.
Get pest and building inspections done
Inspections will cost around $500 – $600, but they are essential to have done prior to making an offer and signing contracts. These inspections will let you know if there are any termites or other pests within the property or if there are structural issues that could cost you a lot of money to repair. These need to be taken into consideration when negotiating a purchase price for the property.
Making an offer
Try not to appear too keen when making an offer on a property and be prepared to negotiate. Your initial offer should be lower than the actual price you are prepared to pay so you have some room to negotiate. You also need to ensure you advise the real estate agent of any terms you would like with your offer such as time frame to move in.
Paying a Deposit
Once you have agreed on a price, you will need to pay a deposit and sign the contract of sale. Until this is completed, the property can be sold to someone else.
Get your loan unconditionally approved
Once contracts are signed, you will need to get your loan unconditionally approved. Your lender will need to have a valuation done on the property and you will need to have the property insured. Your personal Mortgage Broker at Assured Lending will help you with this process to make sure all the paperwork is done and the loan is approved and ready for settlement.
The duration of the Settlement will be advised in your contract and can be negotiated. In NSW this is usually around 6 weeks. Prior to settlement, you are entitled to have one last inspection of the property to ensure it is still in the same condition. The balance of the property purchase is paid by your Lender on the last day of settlement and keys are exchanged.
- Save as much as you can for a deposit. Minimum should be 5% of your intended purchase price
- Meet with a Mortgage Broker to go over your finances and your needs
- If you have a guarantor, the Broker will explain their obligations & commitments
- Your Broker will go through all the available loans from Australia’s leading lenders to find the right deals for you
- We will help you select which lender and loan to go with and explain all the terms and conditions
- We will assemble your application for the first home owners grant and a loan pre-approval so you can start looking for a home with confidence
- Once you have selected a property and signed a contract of sale, we will put together the paperwork for an unconditional loan approval.
- When your loan documents arrive, we will help you complete the documents
- Your solicitor or conveyancer will arrange settlement with the lender and the funds will be transferred on the day of settlement
First Home Buyers Tools
Home Loan Guide
Download our free comprehensive Home Loan Guide packed with valuable information, checklists, resources and home buying tips to help you navigate the process of getting a loan and buying property in Australia.
Property Valuation Report
Would you like a free report on a property you are considering purchasing? Your property valuation report will include an estimated valuation on the property, previous sales history, location highlights, comparative sales details for similar properties that have been sold in the same area, median property prices for the suburb, properties sold per year in the suburb, capital growth and more.
Housing Market Update
Download this free report which has all the latest news & statistics for the housing market in Australia. Includes average home values by state, capital gains, housing supply & demand, auction clearance rates & much more.
Mortgage Affordability Calculator
Access our obligation free mortgage affordability calculator to get an instant estimate on how much you can afford to borrow. This calculator will also tell you what the monthly repayments may be on the loan amount and how much interest you might pay over the life of the loan.
Calculate how much you will need to save each week to reach a set savings target. This calculator will also tell you how much interest you could generate on your saving and the amount of time it will take to reach your goal.
Property Viewing Checklist
Print our property viewing checklist so you can ensure you are considering all aspects of a potential property during a viewing. This checklist could save you a lot of time and money making sure the property is in good condition.
Suburb Profile Report
Order your free suburb profile report to see how any Australian suburb is performing in the property market. Make informed choices on future property purchases with a detailed knowledge of the local area. This report features a suburb profile, median monthly sale prices, total number of properties for sale, median capital growth, housing structure, occupancy, resident statistics, and more
Stamp Duty Calculator
Calculate what the stamp duty will be for a property you are considering purchasing. Stamp duty is a tax required to be paid when purchasing land or property and is calculated on the value of your investment. Stamp duty varies between the different states in Australia.
Get a clear understanding of your current finances with our personal budget planner. Use this calculator to see if your finances are in surplus or shortfall and get a better idea of how your budget may look once you have purchased a property.