How does the First Home Super Saver Scheme (FHSSS) work?

If you’re a first home buyer, you may be eligible to withdraw voluntary super contributions you’ve made to put toward a home deposit.

Through the First Home Super Saver Scheme (FHSSS), first-home buyers may be able to use Australia’s superannuation system as a tax-effective way to save for part of their home deposit.

How does it work?

If you’re an eligible first home buyer, aged 18 or over, you can withdraw voluntary super contributions (which you’ve made since 1 July 2017) to put toward a home deposit.

 

Under the FHSSS, first home buyers, who make voluntary super contributions of up to $15,000 per financial year into their super, can withdraw these amounts (in addition to associated earnings / less tax) from their super fund to help with a deposit on their first home.

 

If you’re eligible, the maximum amount of contributions that can be withdrawn under the scheme is broadly $30,000 for individuals, or $60,000 for couples.

What counts as a voluntary super contribution?

Salary sacrifice contributions

Salary sacrificing is where you choose to have some of your before-tax income paid into your super account by your employer.

This is on top of what your employer might pay you under the Superannuation Guarantee, which will be no less than 9.5% of your earnings, if you’re eligible.

After-tax super contributions

This is where you make an after-tax contribution into your super using money from your regular bank account, savings, an inheritance, or from the proceeds of the sale of an asset.

Tax-deductible super contributions

These are contributed as after-tax super contributions, with the difference being you have or can claim a tax deduction on these contributions in your tax return.

How does the scheme benefit first home buyers?

Due to the favourable tax treatment, generally available through super, the FHSSS intends to help first home buyers to grow their deposit more quickly, while potentially reducing the tax they pay.

 

When money is withdrawn under the FHSSS, amounts that were contributed as before-tax or tax-deductible contributions are taxed at your marginal tax rate, less a 30% tax offset, while amounts that are contributed as after-tax contributions aren’t subject to additional tax.

 

Note, tax will apply to associated earnings.

Meanwhile, it’s important to understand that the money you save through the scheme mightn’t be enough for a full deposit to buy your first home, but you could combine it with other methods of saving to help you get there faster.

 

How do I withdraw contributions under FHSSS?

To make a withdrawal under the scheme, an application to the Australian Taxation Office (ATO) will be required, and an eligible person is only allowed one FHSSS withdrawal in their lifetime.

There are super contributions which will not qualify and cannot be withdrawn under the scheme, such as Superannuation Guarantee contributions (which are those made by your employer), as well as spouse contributions (which are those that your partner may choose to put into your super fund).

What else should I be aware of?

  • You must buy residential premises. This includes vacant land (if you’re planning to build), but not any premises that can’t be occupied as a residence, and not a houseboat or motor home.
  • You’ll need to buy a home or land to build on within 12 months of withdrawal. You can ask the ATO to extend this to 24 months if required.
  • FHSSS amounts that are withdrawn and not subsequently used for a property purchase must be put back into super as after-tax contributions, or penalties will apply.
  • The first-home buyer must reside at the property for at least six months in the first 12-month period from when it can be occupied.
  • The maximum amount you can contribute each year to your super account under the FHSSS is $15,000, with the maximum amount you can save under the scheme $30,000. On top of that, there are also annual contributions caps in place you should be aware of.
  • Additional rules may apply to your situation, so make sure you do your research before making any decisions.

If you would like more information or have any questions please contact us.

The First Home Loan Deposit Scheme explained….

The First Home Loan Deposit Scheme has been designed to help first home buyers get into the property market sooner. But how exactly does it work? What requirements do you need to meet to qualify? And, if you are eligible, how can you apply? 

Let’s take a look at all the information.

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme began on 1 January 2020. It allows first home buyers to purchase a property with as little as a five per cent deposit and without the need to take out lenders mortgage insurance (LMI). The government says this could save first home buyers as much as $10,000.

 

The Commonwealth Government guarantees the difference between what the first home buyer has saved and the 20% deposit threshold lenders usually require before they’ll provide a loan without LMI.

 

For instance, if you have $45,000 to put towards a $500,000 home, the government would step in and guarantee the first $55,000 of your loan so that it brings your security up to $100,000, or 20% of the total value of the property, excluding government fees like stamp duty. In this sense, the First Home Loan Deposit Scheme has a similar effect to a Family Guarantee but with the government playing the role of guarantor over the loan instead of a family member.

 

While the scheme doesn’t offer a cash payment, the good news is that you can use it in conjunction with any other government grants, schemes, concessions and waivers you qualify for. For instance, any First Home Owner Grant or stamp duty concessions you qualify for in your State or Territory will still apply.

 

Am I eligible for the First Home Loan Deposit Scheme?

To be eligible for the scheme you must be an Australian citizen who’s over 18 years old. If you’re buying as a couple, it must be with your spouse or partner. You must also never have owned residential property previously in Australia, whether as an owner-occupier or investor.

There are other requirements you’ll need to meet, when it comes to your salary, your home loan and the property itself. We’ve set these out in more detail below.

 

1. Property requirements

Unlike a First Home Owner Grant, which usually requires you to buy a new home, there are few restrictions on the type of property you can purchase under the First Home Loan Deposit Scheme – both newly-built and established properties qualify.

However, there are thresholds on the value of the property. These vary depending on which State or Territory you’re located in and whether you’re in a metropolitan or regional area.

 

State or TerritoryCapital city and regional centresRest of state
NSW$700,000$450,000
Victoria$600,000$375,000
Queensland$475,000$400,000
Western Australia$400,000$300,000
South Australia$400,000$250,000
Tasmania$400,000$300,000
Australian Capital Territory$500,000
Northern Territory$375,000

 

For the purposes of the scheme, a regional centre includes any centre with a population greater than 250,000. This includes the Gold Coast, the Sunshine Coast, Newcastle and Lake Macquarie, the Illawarra and Geelong. Some other regions have different thresholds.

 

2. Buying as a single or couple

You can qualify for the scheme as an individual buyer or as a couple. To be eligible as a couple, you need to be married or in a de facto relationship. Unfortunately, you’re not eligible if you’re buying with people you have a different relationship with, such as a parent or grandparent, sibling or friend

 

3. Salary threshold

If you’re purchasing a home on your own, you need to have earned $125,000 or less in the last financial year (as declared in your ATO Notice of Assessment) to qualify for the First Home Loan Deposit Scheme. If you’re purchasing as a couple, you must have had a combined taxable income of less than $200,000 in the last financial year.

 

4. How much deposit do you need to have saved?

To be eligible, you’ll need to have saved at least a five per cent deposit. The government says these need to be ‘demonstrated savings’, which means you won’t be able to count any First Home Owner Grant money towards this amount.

5. Principal and interest loan

 

Your loan usually needs to be a principal and interest home loan for the entire period of the guarantee. The exception to this is if you’re taking out a loan over both vacant land and to construct a new home. In these circumstances, interest-only loans are eligible while your home is in construction.

 

Owner/occupiers only

Finally, the scheme is only open to owner-occupiers, so you’ll need to be purchasing the home to live in it.

 

How to apply for the First Home Loan Deposit Scheme?

New scheme places are released at the start of each financial year, with the latest release on 1 July 2020. NAB and CBA are the two major lenders selected to participate with a total allocation of 5,000 grants shared between them both.  

 

Here is a list of the other lenders allocated the final 5,000 places:

  • Australian Military Bank
  • Auswide Bank
  • Bank Australia
  • Bank First
  • Bank of us
  • Bendigo Bank
  • Beyond Bank Australia
  • Community First Credit Union
  • CUA
  • Defence Bank
  • Gateway Bank
  • G&C Mutual Bank
  • Indigenous Business Australia
  • Mortgageport
  • MyState Bank
  • People’s Choice Credit Union
  • Police Bank (including the Border Bank and Bank of Heritage Isle)
  • P&N Bank
  • QBANK
  • Queensland Country Credit Union
  • Regional Australia Bank
  • Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
  • Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union

Although the scheme is administered by the Commonwealth Government’s National Housing Finance and Investment Corporation (NHFIC) you can’t apply through them. 

 

Instead, you can enquire about the Scheme directly with the lenders by or through a Mortgage Broker.

 

To apply to the Scheme, you’ll be subject to the following eligibility criteria. You need to be able to provide documentation of your eligibility to secure your position.

Eligibility criteria includes:

  • All applicants must be First Home Buyers and must not have owned or had an interest in residential property (whether as an investment or owner occupied).
  • Individual applicants must have earned less than $125,000 or $200,000 for couples in the last financial year (as evidenced on your ATO Notice of Assessment).
  • Couples must be married or in a de facto relationship. Other persons buying together, including friends, siblings or a parent/child are not eligible.
  • All applicants must be at least 18 years of age and have a valid Medicare card (or Defence ID).
  • All applicants must be Australian citizens with either a valid Australian passport or proof of Australian citizenship. Permanent residents are not eligible.
  • Applicants must have a deposit of between 5% and 20% of the property’s value.
  • Your purchased property price must be within the property price threshold for the suburb and postcode. You can check the property price cap for your area using NHFIC’s online tool.

 

On top of this, you should also bring any documents you would usually expect to take to your first home loan meeting. This includes proof of your current income and expenses, details of your employment status and information on any debts or credit cards.

 

Other things to look out for before applying for the First Home Loan Deposit Scheme

While the First Home Loan Deposit Scheme promises to help many first home buyers onto the property ladder sooner, you still need to consider whether it’s right for you. This includes asking yourself the following questions.

  • Are you currently employed? If you are not currently employed, you are not eligible for the scheme.
  • Do you meet the lender’s credit requirements? Your home loan application will still be assessed like any other, which means you need to be able to meet the lender’s income and expenses requirements and have a sound credit history.
  • Can you meet the repayments throughout the whole period? A smaller deposit usually means a larger home loan. And, remember, you won’t be able to switch to interest-only while you’re covered by the scheme. If your circumstances change you’ll still need to keep making the same repayments.
  • Do you have genuine savings? If you can’t demonstrate you’ve saved at least five per cent of the value of the home, you may not qualify under the scheme at all, even though some lenders may still allow you to borrow.
  • Can you afford stamp duty and other upfront costs? You may still need to pay these amounts, even though some state and territory governments offer generous discounts for first home buyers.
  • Are there better alternatives? For instance, would you be better off saving towards a larger deposit and reducing the size of your home loan?

 

What if you don’t qualify?

If you don’t qualify for the First Home Loan Deposit Scheme you may still have the opportunity to get into the property market sooner rather than later – even without paying lenders mortgage insurance. For instance, you may be able to have a family member act as guarantor over all or part of the loan.

 

Alternatively, you may be able to turbocharge your savings so that you meet the 20% deposit threshold through the First Home Super Saver Scheme. And you may well also be entitled to a First Home Owner Grant and the HomeBuilder Grant to help you get to that point sooner.

 

Talk to us today to get more information on all your options.

 

 

 

What are Family Guarantor Home Loans?

Could your parents help secure your first home?

 

Saving a deposit for a home and getting approved for a loan as a first-time buyer can be difficult. But finding someone to go guarantor could help you get into the property market more easily, so long as you’re aware of  everything that is involved.

One way to get a foot in the door could be to ask for financial assistance from your family. It is extremely common these days for parents or even grandparents to give cash to their children or grand children to help them buy a home.

So, what does it mean to have a parent or other family member guarantee your home loan, and what does it involve?

What is a guarantor home loan?

A guarantor home loan allows parents, or someone else who’s close to you, to use the equity in their property as security for part or all of your mortgage. They could also ‘go guarantor’ by contributing cash to help you pay off the loan.

Typically, as the homebuyer you’ll still be the main person responsible for making the regular repayments on your mortgage (including any interest and fees), but if you fail to meet those repayments, the guarantor may become liable to cover them.

The person securing your home loan is known as the guarantor. Like a normal home loan, for a guarantor home loan you would borrow an amount from a bank and repay it, but the guarantor’s equity essentially acts as collateral should something go wrong, which means the bank could take possession of it if your guarantor also can’t meet the repayments.

Your guarantor may choose to only guarantee a portion of the loan, which would mean once you had repaid that portion of the loan, they would be free from any risk to their property should you miss any repayments further down the track.

Who can act as my guarantor?

Lenders generally require your guarantor to be an immediate family member, such as a parent or partner, but some may also allow others such as your sibling or a grandparent to go guarantor. Different banks often have different requirements of what makes someone eligible to be your guarantor, some of which can include having:

  • A good credit score
  • Equity in a property
  • A stable income

How much can I borrow with a guarantor?

Some lenders may let you borrow up to or even above 100% of the value of the property you’re buying if you have a guarantor, but it really depends primarily on the lender, your financial standing as a potential borrower and the circumstances of your proposed guarantor or guarantors. Your lender may still consider whether it thinks you can afford to eventually repay the loan, and some banks may require you to save a certain amount towards the deposit even though you have a guarantor.

If you find you can be approved for a loan at the full value of the property, it’s worth taking a good look at your income and living expenses to ensure you have the capacity to repay the loan with some left over for any unexpected expenses.

It’s important to talk to your guarantor about the loan amount and the amount they are willing to guarantee in advance of entering any formal agreement.

What are some benefits of a guarantor home loan?

One of the main benefits of having a guarantor on your home loan is that it may help you avoid paying Lender’s Mortgage Insurance (LMI). This is typically a one-off fee paid by the borrower to the lender to protect the lender against financial loss should you be unable to meet your mortgage repayments. Lenders typically require borrowers to pay LMI on loans where the borrower has a deposit of less than 20% of the property’s value.

In the case of having someone go guarantor for you, however, the risk to the lender is already minimised by having the guarantor’s home as security. A guarantor can also help you secure funding from a bank if you don’t have enough saved for a deposit of that size, and can help reassure the bank that mortgage repayments will be covered if you can’t pay.

Other possible benefits of a guarantor home loan include:

  • You may not have to save as much for a deposit
  • It could strengthen your home loan application
  • You could get into the property market faster and more easily

While there are clearly some benefits to going guarantor, given it’s such a large financial commitment, it’s also worth weighing up the potential risks.

Other ways your family could help you buy a house

If a guarantor home loan just doesn’t sound like the right option for you, but you still need a little help to get into the property market, your family could help by:

  • Paying some money towards your deposit as an informal loan that you can pay back to them over time, which may allow you to put down a 20% deposit and avoid paying LMI.
  • Letting you move back home to cut down on expenses such as rent and bills, allowing you to put the savings towards a deposit.
  • Co-signing a home loan with you, meaning you would both be responsible for the loan repayments but your parents wouldn’t have to put up their house as security. This could also be seen as an investment property of sorts, that your parents could potentially earn a profit from.

 

Ultimately the decision to have someone go guarantor for your home loan is a personal one and worth a lengthy discussion.

 

If you are looking at options to buy your first home be sure to contact us and we can assist you with all your options.

 

All You Need to Know About the $25k HomeBuilder Program!

The Australian Government has recently announced the HomeBuilder grant, which could give you $25k towards the building or renovation of your home. Here’s everything you need to know!

 

What is the HomeBuilder program?

The HomeBuilder grant program is designed as part of an economic stimulus package in the wake of the Covid-19 pandemic. The grant offers $25k to eligible homebuilders and homeowners towards the build of their new property, or renovation of existing property.

Interestingly, you don’t need to be a first home buyer to access the grant. It also works in conjunction with any other government schemes, such as the First Home Buyer’s grant. This means first home buyers could be eligible for the $15k First Home Buyer’s grant and the $25k HomeBuilder grant.

 

Who qualifies for the HomeBuilder grant?

People must meet the following criteria to be eligible:

  • you are a natural person (not a company or trust);
  • you are aged 18 years or older;
  • you are an Australian citizen;
  • your annual income (based on 2018/2019 tax returns or later) doesn’t exceed $125,000 per year for an individual, or $200,000 per year for a couple;
  • you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
    • build a new home as your permanent residence, where house and land value is less than $750,000, or
    • substantially renovate your home, where the renovation contract is between $150,000 and $750,000. In this case, house and land value must be less than $1.5 million.
  • construction must begin within 3 months of the contract date

People wishing to build or renovate investment home are not eligible for the grant.

 

Knockdown and Rebuilds

If you own a house and land, but wish to knock down your existing home to rebuild, you may be eligible for the HomeBuilder grant. This falls under the ‘renovations’ category, therefore along with other eligibility criteria, you must show that:

  • Your total house and land value pre-renovation is below $1.5 million
  • Your renovation contract is between $150,000 and $750,000

As you already own the property, you wouldn’t be eligible for other grants such as First Home Owner, First Home Loan Deposit Scheme or First Home Super Saver Scheme.

 

House and Land Packages

People buying house and land packages are eligible for the HomeBuilder grant provided they meet all the eligibility requirements listed above. Specifically, the value of the house and land MUST be below $750,000.

If it’s your first home, you may also be eligible for the First Home Owner grant, First Home Loan Deposit Scheme and First Home Super Saver Scheme.

 

Building a new home

Building a new home may fall into two different categories for the purpose of HomeBuilder eligibility.

Purchasing house and land: If you are purchasing land, and building a house on that land, you may be eligible. You must meet all eligibility requirements, and the value of the land plus the building contract must not exceed $750,000.

If you already own the land: If you already own land but are yet to build on it, you may also be eligible. Provided you meet all the criteria, and the land value plus building contract is below $750,000, you’ll be entitled to the $25k HomeBuilder grant.

 

Renovations Only

If you only want to do renovations, there are a few rules to remember. Aside from the standard eligibility criteria around Australian citizenship, age and income, these rules apply:

  • Renovation contract must be between $150,000 and $750,000
  • Existing land and house value must not be over $1.5 million
  • Renovations must be to improve accessibility, liveability and safety of the property (pools, tennis courts etc are not included)
  • The owner and builder must not have a pre-existing relationship (for example, family members)

 

How to apply for the HomeBuilder Grant

Your builders or renovators should be able to guide you, however we recommend contacting the relevant revenue authority in your State or Territory for details on how to apply.

For further assistance on accessing the HomeBuilder grant, please contact us today and speak to our team of experts!

How to get a home loan without a big deposit.

Buying your first home is a major step in anyone’s lifetime. For many its the single most important purchase and is security for their future.  In this day and age it is a great accomplishment and brings freedom from dead rent, inspections and paying someone else’s mortgage.

The one major hurdle to this dream is the major deposit banks require in order to purchase that first home. Even though you have calculated that you could make the repayments coming up with a 20% deposit can seem like a daunting task and feel like it will take forever.

If you’re struggling to come up with a 20% deposit here are some other options you may want to consider.

 

First Home vs Dream Home.

If you already have a large amount of savings for your deposit however  it’s still not enough for the house or house and land package you are looking at, maybe consider a small or cheaper home.

Usually a first home is not someones forever home, families grow and lifestyles change.  If you don’t need 4 bedrooms now maybe consider a 3 bedroom home and so forth.

You need to determine what is more important to you at this stage. Is it entering the property market, or waiting until you have enough deposit? Holding off may mean property prices rise and may leave you further away from achieving your goal.

By purchasing a cheaper home, you may be able to get into the market sooner, take advantage of Government first home grant incentives and allow your home to grow in value. Eventually, you may be able to rent out the home or sell for a profit and use the funds to upgrade to your dream home.

 

Family pledge/guarantee.

A family pledge or guarantee has become a popular way for parents and or family members to help each other secure a home. If you have a family member who owns their home either outright or has equity available, they may be able to use a portion as security towards your home. 

This can allow you to get a home loan with little to no upfront deposit. Which means instead of you only being able to borrow 80% of the purchase price and the need to provide a large deposit, with your parents or family members home as security you may be able to borrow up to 100% of your new home’s value.

Generally, family members who can guarantee your home loan can be parents, siblings, partners and grandparents.

 If you have more questions about Family guarantees contact us and will talk you through the process.

 

Borrowing with Lenders Mortgage Insurance

Lenders’ Mortgage Insurance, or LMI, is insurance that protects the lender, not you. It’s usually a one-off payment made by the borrower at the time of loan settlement. Here are the facts about LMI:

  • LMI is a type of insurance you can expect to pay if you borrow more than 80% of your home’s value.
  • LMI protects the lender – not the borrower.
  • You don’t need to arrange LMI yourself – your lender will sort it for you.
  • It’s possible to save on LMI by saving a bigger deposit.
  • LMI may range between $7,000 to $15,000 or more.

Some lenders will allow you to borrow between 95% – 98% of your new homes value. This means you may be able to purchase with only 2% – 5% deposit. However there are a number of conditions that you will need to meet and this is where LMI comes in.

The lenders will also want to make sure you have the capacity to repay the home loan. Without a strong savings history, they may require you to have a proven rental history with consistent repayments.

 

First Home Super Saver Scheme.

In 2017 the First Home Super Saver Scheme was introduced by the Australian Government. The FHSS scheme allows first home buyers to save money inside their superannuation fund. This can help buyers to save for a deposit faster.

With the FHSS scheme you can make voluntary contributions into your super of a maximum of $15,000 per year and up to a total of $30,000 contributions across all years. These funds can then be used towards your deposit when needed.

Find out more about the First Home Super Saver Scheme

 

Our Deposit Assistance Solution.

Our Deposit Assistance Solution is designed especially for home buyers with a low deposit. We make this possible by connecting our buyers with lenders who will lend up to 98% and using Government first home grants towards your deposit.

We provide deposit assistance as a gift to eligible home buyers to help cover additional expenses. This will allow you to get into your home sooner with less savings.

Helping buyers with a low deposit is what we do best. We provide a free service to make the journey simple. If you’re serious about buying a home, then we can provide you with a strategy that will enable you to do so.

 

Talk to us today!

 

The QLD First Home Owners Grant explained….

The Queensland First Home Owner Grant also known as ‘FHOG’ is a State Government initiative available to first home buyers when purchasing their first home in Queensland.

 

To help make it easier for first home buyers to enter the property market, eligible buyers can now access a grant of $15,000 towards their first home purchase. We’ve outlined some important information about the first home grant below.

 

What is the QLD FHOG amount?

As of July 1st 2018, the current FHOG amount is $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000).

 

Who’s eligible?

If you’d like to access the Government First Home Owners’ Grant, then there’s a few things to keep in mind to ensure you’re eligible. We’ve outlined the eligibility criteria listed on the Queensland Government website below:

  • You must be at least 18 years of age.
  • You must be an Australian citizen or permanent resident (or applying with someone who is).
  • You must not have previously owned property in Australia that you lived in.
  • You must be buying or building a brand new home.
  • You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.

 

The Queensland Government website provides a free eligibility test to help determine if you can access the First Home Owners’ Grant. See if you qualify here.

 

 How to apply for the FHOG.

There are two ways to submit an application for the Queensland First Home Owners’ Grant:

  • through an approved bank or lending institution
  • with the Office of State Revenue.

If you need the grant funds for settlement or want to receive it as soon as possible, it is best to apply through an approved bank or lender. The state government website contains detailed information on

 

Can I use it towards my deposit?

Many lenders will now consider the First Home Owner Grant as part of your initial deposit when buying a brand new home. This has enabled us to be able to offer a low deposit home loan option..

 

With the QLD FHOG and Deposit Assistance Solution we can help first home buyers into the property market with as little as $2,000.

The state government website contains detailed information on the QLD First Home Owners Grant. You can find it here.

 

Talk to us today and make your dream home a reality.

 

The best way to get your home loan approved in these uncertain times.

In these uncertain times, banks have started to take a more detailed approach to their lending criteria which can make it more difficult to successfully acquire a home loan.  This is where we come in, at Buy Your First Home we aim to make the process easier for you by taking on the grunt work for you to give you the best possible chance to achieve your dream of owning your first home. 

There are however a few things that you can do to assist in the process. We’ve outlined a few of these easy steps below.

 

Stick to a budget and avoid unnecessary purchases.

Give yourself a realistic weekly budget and do your best to stick to it, allow a splurge every now and then as it will make it easier for you to stick to the budget for longer. Remember Afterpay and Zippay are considered debt and instead of using these options save budgeted splurge money for these bigger purchases. 

 

Manage your existing debt 

If you have existing loans or credit cards make sure you make the payments on time and if possible make small extra payments.  It is important to be diligent with payments as any overdrawn or late payments will not look favourably when the bank does your credit check. This also goes for your rent, in cases where first home buyers are looking for low deposit home loans a good rental history is crucial to success.

 

Do not take on any more debt.

Although there are a number of assistance programs for first home buyer at the moment if you truly want to achieve your very own home you must be committed to saving, which means not taking on anymore debt, credit card increases, store cards etc.  When you really want those extra items remind yourself how great it will feel to be in your own home.

 

Keep your job.

To put it simply, keep your job. Consistent employment looks great on your home loan application.  There will be times that inevitably job losses happen and it cant be helped, however the longer you are employed with the same employer the better.   When choosing a time to apply for your loan we would recommend a minimum of 12 months.

 

Keep Saving

Banks and lenders like to see a strong savings pattern the longer you save the better.  It is always best to create a separate savings account that offers high interest rates so that it is not as easy for you to access when you are tempted to make those impulse purchases.

 

Talk to a mortgage broker

Sometimes the process of a loan application can become a long one, mortgage brokers now the system and the processes inside out and can often speed it up by getting all your documents and information together before going to the lenders.  Mortgage brokers often have relationships with certain lenders and are therefore more knowledgeable of what they are focusing on at any one time.

At Buy Your First Home it is our goal to make the process of buying your first home a simple one.  We know that sometimes its difficult to save a huge amount for a deposit, its for this reason we have developed our deposit assistance solution. Talk to us today about how we can help you.

0412 802 215

hello@buyyourfirsthome.com.au