It might seem obvious, but the best advice for first time home buyers is “find a reliable, experienced and qualified mortgage broker who is a member of MFAA.”
Buying your first home is exciting but it can also be a pretty daunting affair. Put yourself in the hands of a trustworthy expert who will help you every step of the way.
Your first home might be an existing property or a new build house and land package. Either way, you may be eligible for financial assistance from the state government in the form of a First Home Owner Grant.
Currently in WA (October 2014) the grant is $10,000 for those buying or building a brand new house and $3,000 for those who purchase an established home. The grant becomes available upon signing a contract or, in the case of a construction loan, when the foundations are first laid.
The First Home Owner Grant applies to properties with a total value of $750,000 or less in Western Australia but this cap rises to $1,000,000 or less if the property is located north of the 26th parallel – or approximately north of Carnarvon.
The Home Buyers Assistance Account was established under the Real Estate and Business Agents Act 1978 to provide first home buyers with financial support.
The scheme provides a grant of up to $2,000 for the incidental expenses encountered by first home buyers when they purchase an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
The grant can be used to pay the fees associated with mortgage registration, solicitors, conveyancing, valuation, property inspection, establishment, mortgage insurance premiums and lending institution fees associated with lodging the application. The account does not apply to vacant land or house and land packages.
Stamp duty is effectively a tax on the transfer of property and some other goods such as cars.
Stamp duty on property is paid by the purchaser in a lump sum within 30 days of settlement. Duty varies from state to state and is dependent on the value of the property.
Your Home Loan Republic broker will tell you how much you have to pay assist you in appointing a conveyancer who will arrange the payment for you.
When you take out a loan with what is deemed to be a small deposit (usually less than 20% of the purchase price) your lender assumes there is an increased risk that you may not make the required payments.
The lender therefore takes out insurance against this risk, however the premium for this insurance policy is paid by you, the borrower.
It might seem tough that you have to pay to insure the lender but, prior to the introduction of lender’s mortgage insurance, lenders required much larger deposits than they do today.
While everybody can benefit from the services of a qualified broker, first time buyers are perhaps more in need of advice and assistance than others.
Between them, the brokers at Home Loan Republic have helped thousands of young people take their first step on the property ladder.
If you are considering your first home purchase, contact us today.
At Home Loan Republic, we regularly save our clients thousands of dollars by assessing their current home loan situation and taking advantage of better deals. Arrange your own Home Loan Health Check today and reap the benefits.
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