First Home Buyers

Can I/we buy a home?

• What is your borrowing capacity? This is the amount banks will loan you for a house. It is based on what you earn and what your expenses are. It represents the amount you can afford to pay back. Click here to find out your borrowing capacity.
   
• Do you have a deposit? Most banks and other lenders with only loan you up to 95% of the property value. In most cases you need to have been putting money aside to show that you have the capacity to be paying off a mortgage. Occasionally there are products on the market that will allow you to use a monetary gift or the First Home Owners Grant to represent your 5% of the buying price. If you’re unsure if you’d meet these requirements, please call us to discuss mortgage products that will suit your individual needs.
   
• How do/ Can we get the First Home Owners Grant? If neither you nor anyone buying your property with you has owned property before, you will be eligible for the FHOG. Many people have to re-submit their FHOG applications due to being incorrectly filled out and this can result in delays in the grant being paid and possibly not being able to settle on time. At Pride Mortgage Services, we go through the entire FHOG application process with you. We submit the application through your bank and the money is available at settlement, eliminating any delays. To find out what grant amount you may be eligible for, email us.
   
• What other costs are involved in buying a home? Unfortunately, the buying price of your first home is not the cost. You may also need to consider:
   
  • Stamp Duty: Stamp duty is a tax the state charges you on the purchase of your home. Right now, the government is completely waiving any stamp duty on homes under $500,000. This is a saving of $17,990 on a home valued at $500,000. Homes costing between $500,000 and $600,000 will have a reduced amount of stamp duty, and $600,000+ homes will have the full amount of stamp duty payable.
     
  • Lenders Mortgage Insurance (LMI): This is to insure the bank for the possibility of them losing money on your home if you can’t pay the mortgage. Unfortunately though, if you borrow more than 80% of the value of the home, you will have to pay LMI. This can cost thousands of dollars and is often added on to your mortgage (or ‘capped’). To see how your mortgage broker may be able to save you on LMI, contact us now.
     
  • Loan Application / Deferred Establishment Fees: Some lenders will charge you just to apply for a loan, others will charge you if you want to leave their loan and many do both. These fees differ from lender to lender, to be aware of what you may have to pay, come see us before you enter a loan and let us explain what loans do and do not have these charges.

  
   

  • Conveyancing Costs: Because there are contracts involved in the change of ownership of the home you are purchasing, you will need to have a conveyancer or solicitor. The fees charged vary depending on who you enlist to do your conveyancing.
     
  • Valuation / Inspection Costs: The lender will need to value the property you wish to borrow against. This cost is usually included in the application fee charged by the bank. To make sure the property you’re looking at is worth what you think it is, contact us now and request a free Residex Report. You will also have to have a building and pest inspection done prior to purchasing your home. Often, your legal team will take care of this for an additional fee. If you wish to have your mortgage broker liaise with your legal team to make sure all you bases are covered, contact us and know that we will make sure every aspect of getting you into your first home is taken care of.
     
  • OTHER mortgage brokers: Some brokers collect on you twice! They collect their commissions from the bank and then CHARGE YOU for their services, without letting you know their bill is coming. At Pride Mortgage Services we’re totally upfront. We receive a commission from the bank to successfully submit your application. When your mortgage settles the bank pays us, we collect nothing from you. It’s totally FREE to call us now and just enquire. There’s no obligation. So contact us right now and let us take care of all the hard work involved in buying your first home.
     
  • Insurance: Your lender will insist that you have your building insured. This will need to be done before your lender releases the loan to you. At Pride Mortgage Services, we offer all sorts of insurance and can even get your building insurance organised while you wait. You may also want to consider contents insurance as well as life and income insurance, because no one knows what lies around the corner.
     
  • Getting into your new home: When you’re moving into your new home, there are more costs you may need to consider, including; paying removalists if you cannot get your belongings into your new home yourself; you may have to pay to have all you mail re-directed by the Post Office; connecting your utilities, like your phone, internet, electricity and gas; council and water rates; strata fees for townhouses, villas, duplexes, units and apartments.
     
• What loan is right for me/us? There are hundreds of products on the market including features that you may or may not require. The easiest way to make sure you don’t pay for a feature you won’t use, or overpay for a feature you could have gotten for free, is to talk to your mortgage broker absolutely FREE at Pride Mortgage Services. We can discuss (and decipher) all the features you can opt for when putting together a loan that is just right for YOU. We can tailor a solution that will make the most of your money and suit your circumstances perfectly. We can put you into the right product for you and show you how to save years and thousands off your mortgage. We help you to make the most of your money and make sure the end result is just right for you. Call us today.