First Home Loan

Purchasing your first home can be a daunting process. Our consultants will make the process as easy as possible by helping you find the right home loan from our panel of more than 30 lenders. We can also provide you with information on how to go about purchasing a property. Please read on for information on home loans for which you may qualify and other information important to first home buyers. First Home Buyer Tools

  • First Home Owners Grant – Information on the grant and links to download the application form
  • Stamp duty concessions – Information on the concessions each state gives to first home buyers
  • Steps in buying a property – A general guide explaining the steps you need to take to purchase a property
  • How much can you borrow? – If you have at least a 5% deposit plus purchase costs (can include the First Home Owners Grant) and want to know how much you can borrow complete this form
  • Calculators – To work out your repayments etc.
  • Loan types – Information on the various types of home loans available

Home Loan Options A lot of first home buyers don’t fit into the ‘box’ that many banks expect them to be in. Most lenders will require you to have saved at least 5% of the purchase price over a period of at least 3 months. A lot of major lenders are now only lending up to 90% of the property value whereas in the past they would lend up to 100%. In many cases we can help borrowers who do not fit into this ‘box’. If you fit into one of the following categories we may be able to help. If you have any questions about any of the products mentioned please submit your question using our contact us page or call us on 1300 66 12 11 . If you would like a free, no obligation assessment of your loan options please apply online.

Your genuine savings plus the First Home Owners Grant make up 5% of the purchase price – 97% home loan

Your savings plus the First Home Owners Grant make up 5% of the purchase price AND you have other funds available for costs (First Home Owners Grant can be used to pay for costs)
We have access to a lender who will consider the First Home Owners Grant as part of the 5% genuine savings requirement. They may lend you up to 95% of the purchase price of an owner occupied property + the lenders mortgage insurance premium if your savings plus the First Home Owners Grant makes is at least 5% of the property purchase price. Please note though that the savings must be saved over a period of at least 3 months. Please call 1300 66 12 11  for more information or apply online for a free, no obligation assessment of your situation.

You have at least a 5% deposit saved over 3 months + have funds for costs – 97% home loan

You have at least 5% of the purchase price saved over a period of at least 3 months AND you have other funds available for costs (First Home Owners Grant can be used to pay for costs)
If you are in this situation you should have access to the a number of loans available in today’s home loan market. There are some lenders that may lend you up to 95% of a property’s purchase price as long as you satisfy their credit and serviceability criteria. In some cases you may be able to borrow up to $1 million dollars using a 95% home loan. Some lenders will also allow you to add the mortgage insurance premium to the loan, effectively giving the loan a 97% Loan to Valuation Ratio. If you have more than a 5% deposit it is generally easier to qualify for a loan. Any loan which is greater than 80% of the purchase price usually involves Mortgage Insurance and as such a one off mortgage insurance premium will need to be paid. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
You have at least 20% of the purchase price available as a deposit AND you have other funds available for costs
Generally, if you have a 20% deposit, most lenders will not want evidence that at least 5% has been saved over a period of 6 months or more. As such you would have access to most loans on the market assuming you pass the lenders’ credit and serviceability criteria. Also you would not need to pay a mortgage insurance premium, which could save you thousands of dollars. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.

You have less than 5% genuine savings but you have been paying rent for the past 12 months

You have at least a 5% deposit AND you have other funds available for costs but the funds aren’t genuinely saved
If you have a minimum 12 months of satisfactory continuous rental history and the property you have been renting has been leased via a Licensed Property Manager/Agent then you will satisfy the genuine savings requirements at a few of our lenders. The funds to complete the purchase can come from another source such as a gift from a relative, a bonus or commission payment, inheritance, sale of a car, a tax refund etc. There are some lenders that may lend you up to 97% of a property’s purchase price, including mortgage insurance, as long as you satisfy their credit and serviceability criteria. Please call             1300 66 12 11       for more information orapply online for a free, no obligation assessment of your situation.

You have no genuine savings – 90% no genuine savings home loan and 95% no genuine savings home loan

You have no genuine savings but have a good steady income
There is still some lenders who may lend up to 95% of the purchase price and don’t require borrowers to have any genuine savings. Please call us on        1300 66 12 11       for more information.
You have no genuine savings but are being given a non repayable gift from a relative or friend or you have attained a deposit from sources other than a loan
If the gift is sufficient to make up 5% of the property price, you may be able to use a 95/5 home loan for this situation, where the 5% deposit does not have to be saved. Please note though that a 90% non genuine savings loan is not as difficult to qualify for. Usually, if you borrow more than 80% of the property value you will be required to prove that you have saved 5% over a period of 3 months or more. In the case of a 95/5 loan you may be able to borrow up to 95% of the property price without any genuine savings and at a competitive interest rate. The maximum loan amount using this type of loan is generally $500,000 per property. You will also need additional funds to pay for costs such as stamp duty and mortgage insurance. If you are a first home buyer the First Home Owners Grant may be enough to cover the costs. Please call 1300 66 12 11 for more information orapply online for a free, no obligation assessment of your situation.
You have no genuine savings but have a relative with significant equity in a property and is willing to act as a guarantor
There are a number of lenders on our panel who offer family equity type home loans. Some of these lenders do not require you to have any genuine savings and will even lend you extra funds to pay for the purchase costs, such as stamp duty. The interest rates on these products are very competitive. All you need is a relative who owns a property with equity in it and is happy to act as a guarantor. It is also possible to limit the guarantee so your relative is not a guarantor for your entire home loan, but for only a small portion of it. Once you build up enough equity in your property the guarantor can then apply to have their guarantee removed. Please see ourguarantor home loan page for more information or call us on 1300 66 12 11. You can also apply online for a free, no obligation assessment of your situation.

You have defaults on your credit report or are even a discharged bankrupt

You are a PAYG employee or self employed with tax returns and have defaults on your credit record or are bankrupt
There are still a few ‘non-conforming’ lenders in the market. These are lenders that will lend to credit impaired applicants, but generally at a higher interest rate. Assuming you are a PAYG employee or self employed and can fully verify your income you may still be able to borrow 80 – 90% of the purchase price even if you have defaults listed against your name. If your credit problems are serious and you have numerous defaults (unlimited number of defaults) or are even a discharged bankrupt you may still be able to borrow up to 80% of a property price. For more details please call us on             1300 66 12 11       or apply online for a free, no obligation assessment of your situation.

You are self employed

Please visit our self employed home loans page for more information on self employed loan options.

Disclaimer:
* Loans are approved or declined on their merits by the specified lender and a loan approval is not guaranteed.
* We believe the information on this page to be correct. However we can give no warranty to this effect and we expressly disclaim any liability for loss or damage by any person acting upon advice contained on this page.

Share