3 Tools to Help Homebuyers get a Home Loan

Graeme Salt

Buying your first home is one of the most stressful things a homeowner can do. For many, the biggest challenge is actually getting enough money for your deposit. Without a sizeable deposit, the banks are less likely to give you a home loan. Here are three tips for someone who wants to get on the first rung of the property ladder. 1. Savings The First Home Saver Accounts were set up by the federal government to help first home owners save towards the purchase of their own place. Each year the government will make a 17% contribution on the first $6,000 you deposit each year. This means that if you deposit $6,000 in one financial year, you will receive $1,020 from the government. Some of the main features of these accounts are: - The interest you earn on the account is only taxed at a rate of 15%. - You have to save at least $1,000 each year over at least four financial years before you can withdraw the money. These four years do not need to be consecutive. 2. FHOG The First Home Owners Grant has been around for many years and in many different forms. Currently, in NSW, the Grant offers $15,000 to assist people buy a newly-built home, or even one that it is off-plan. In addition, the NSW government will waive stamp duty for all or part of the duty payable on properties up to $600,000. The savings (almost $18,000) are highest for those buying a property valued at $500,000. For the first home buyer, the process is very smooth. The bank acts as an agent for the government, such that it can arrange for the $15,000 to be available for you when you settle on your property and can be added to your home loan to complete the purchase. 3. Parents For many first home owners, the biggest problem is showing that you have enough savings: the more savings you have; the more equity you will have in the property; the less risky the loan is for the bank; the more likely you are to get a home loan. Some lenders will allow a family-member to offer their property as security. By doing so, this could enable a first home owner to borrow all of the funds to purchase a property, plus various costs such as stamp duty and solicitor’s fees. If you want to know how we can arrange a home loan for you, please call Graeme Salt at Origin Finance on 02 9922 5055 or 0457 755084