First Home Buyer - The Local Loan Company

First Home Buyer Home Loans

When making the decision to commit yourself to most likely the biggest expense you will have in your lifetime you need to consider all of your options carefully. You need to speak with someone who can assist you in looking at these options and is able to explain the differences to you. The Local Loan Company can assist you in assessing the options and guide you through the process including pre-approvals. We can help make the experience a fun and enjoyable one.

What type of things am I looking for?

Assess your monthly income and outgoings from your bank statements – are you ahead each month, can you save….you need to know where you are right now.
You also need to be sure that you have had good conduct on any other loans and credit cards or bank savings accounts that you have for at least 6 months. Lenders do not like to see overdrawn accounts, late fees, late payments or balances that are in arrears. Obtain a credit check this gives you a clear indication as to whether you may have any defaults or issues that need to be worked on prior to submitting an application.
You will of course need savings. The amount required can differ from 2% to 5% as a minimum. You need to have saved these funds consistently over a minimum 3 month period.

Choose your lender carefully – using a broker provides you with a range of lenders to choose from and advice on which one suits your needs.

Sometimes finding all of this information and getting a clear understanding can be confusing so give us a call at The Local Loan Company and we can help you start the process.

As a First Home Buyer do I just need my deposit?

When you are purchasing your First Home there are fees that you will need to take into account, as well as your deposit.

Settlement Agent/Conveyancer/Solicitor Fees
These can differ so it is a good idea to shop around. Bear in mind though that the cheapest price does not always mean the best service.
Rates
You will be required to pay your share of council and water rates and land tax if applicable.
Bank fees
These can include application fee, legal fees, valuation fees, professional package fee, government fees and monthly fees.
Pest Inspection Reports
If you are purchasing an established home this will normally be written into the contract at your expense.
Building Reports
You may choose to have one of these done if purchasing an established property.
Stamp Duty
Whilst you may be exempt from this as a First Home Buyer, if you go over the threshold level that has been set you will need to pay a portion.
Lenders Mortgage Insurance
In Australia when you borrow over 80% of the value of the property Lenders require you to meet the cost of LMI. This is calculated on a sliding scale and increases with the more you borrow and the higher the loan to value ratio is. Lenders will allow some or all of this to be added onto your loan – the criteria changes so best to speak with The Local Loan Company about this. LMI is there to insure the bank against making a loss should they need to sell your property and are not able to reclaim the full amount of the loan owing. We discuss this in full at our first meeting.
Some of the other costs you should consider are
Removalist costs and connection costs to gas, electricity and internet. You may still have to pay rent while building and you will be trying to manage a mortgage and rent – good idea to have some money in reserve to help over this time.

More Information

Guarantor
Is there any way I can reduce some of the fees. Can my parents assist?
The Loan Process
How does the whole process work?
Pre-Approvals
What are the benefits? How long does it take?
Grants
Government Grants and Rebates.

First Home Buyer Home Loans

What type of things am I looking for?

As a First Home Buyer do I just need my deposit?

Settlement Agent/Conveyancer/Solicitor Fees

Rates

Bank fees

Pest Inspection Reports

Building Reports

Stamp Duty

Lenders Mortgage Insurance

Some of the other costs you should consider are

More Information

Guarantor

The Loan Process

Pre-Approvals

Grants

Our Companies

Legal

Links