- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance, Home sweet home - first home owner finance
For first home buyers, obtaining finance can be a tricky proposition.
After all, you may not be aware of the rules instilled by banks regarding your savings pattern. You also may not be aware as to how your income will be viewed by the banks, and your liabilities.
That $10,000 credit card that you never use, will still be viewed by the bank as a factor in considering how much you can borrow.
We help first home buyers to navigate the many policies of various lenders, and help you to plan – whether this means regular contributions into your savings account, instead of holding it in mums account, or closing that credit card even though you don’t use it and are just keeping it for emergencies.
It can also be confusing for first home buyers to know when and how much they may need to pay for stamp duty (as first home buyer incentives vary depending on purchase price, and whether its off the plan or land and construction).
Mortgage insurance is also a large factor that many first home buyers do not necessarily realise how much this can cost and what steps you can take to reduce this amount, if you are in a position to do so.
Some of you will be able to pay the insurance yourselves, whilst others will need to add the whole amount to the loan.
This will vary from lender to lender whether they allow it, and it will also vary depending on whether your income shows you can afford the extra amount added to your loan for the insurance. Or whether your income only allows you to borrow for the property price and insurance may need to be paid separately to allow you to qualify for the loan.
We are happy to help first home buyers to navigate this confusing territory and often receive phone calls, texts and emails, even on weekends, asking how much they need to contribute towards a particular house they have just looked at – as the deposit, stamp duty and insurance you need to cover, will vary depending on the purchase price. Even a $20,000 difference in purchase price can make a large difference for those whom have been struggling to save and need to find the right balance as to how much they can afford and find a property that meets within this budget.
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