Expert tips, hidden incentives, and simple steps to home ownership with Mortgage Choice Newtown
Taking the leap into home ownership can feel daunting, especially for first-time buyers. But with the right guidance, securing your first home loan can be smoother and more manageable than you think. From understanding your borrowing capacity to uncovering government incentives and navigating loan options, your Broker will walk you through every step of the process - making your dream home a reality.
How to Secure a Home Loan as a First Home Buyer
Your broker can examine your scenario and finances, and provide you with options & solutions that will achieve your goals. Having support from the experts is important, the team at Mortgage Choice Newtown can guide you each step of the way so you can make confident, informed decisions along your home-buying journey.
Determine How Much You Can Borrow
A crucial first step is understanding your borrowing power. Lenders will assess your income, expenses and liabilities to determine how much you can afford to pay back. As a rule of thumb, your mortgage repayments should be no more than 30% of your gross household income.
What is Lender’s Mortgage Insurance (LMI)?
If you need to borrow more than 80% of the property’s value, you may have to pay Lender’s Mortgage Insurance (LMI), a one-off, non-refundable premium added to your loan. The exact cost varies, but it can be significant. However, you may be exempt from LMI under certain conditions – we can check this for you.
Government Incentives for First Home Buyers
There are several government incentives designed to assist first home buyers, and they vary from State to State. Your Mortgage Choice broker can help you determine eligibility for the following programs:
First Home Owner Grant: A one-off, tax-free payment for buying your first home in Australia. Available only for new properties, the amount varies by State and Territory.
Home Guarantee Scheme: This allows you to buy with a deposit as low as 5% without LMI, provided your income is below $125,000 (individual) or $200,000 (couple). Limits on participation and purchase prices may apply and can vary per State.
First Home Super Saver Scheme: This allows you to save for your deposit within your super fund, benefiting from concessional tax treatment. You can release up to $50,000 of voluntary contributions (plus earnings) to help buy your first home.
Stamp Duty Waiver/Discount: Depending on your location and property price, you may be eligible for a discount or exemption from stamp duty, which is a state government tax on property transfers.
How Your Broker Can Help
Navigating the home loan process is easier with a mortgage broker by your side. We help you understand your options, evaluate your borrowing capacity, and secure the best loan. Here’s how we assist you:
We help determine your eligibility for government schemes like the First Home Owner Grant and handle the paperwork.
We explain all costs and steps involved in buying a home, eliminating surprises.
We can arrange a pre-approval for you, so you can start house-hunting with confidence.
We compare hundreds of home loan products from over 35 lenders to find the best fit for you.
We hold your hand from start to finish, providing guidance and support along the way.
Our assistance doesn’t end after settlement. We regularly check in to ensure your loan continues to work for you.
If you’re thinking about buying a property, get in touch with the team at Mortgage Choice Newtown/Eveleigh on 9517 1818 or email newtown1@mortgagechoice.com.au.
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