First Home
As a ‘FIRST HOME BUYER’ this would be your first home purchase in Australia, Congratulations on taking the first step to owning your own home!
Buying your first home is an exciting, but big step to take and one that comes with many questions and decisions. The first big question is how much you can borrow and what your likely repayments will be.
That’s where we can help, we’ll do the legwork for you. We can compare home loans across a variety of products available from Australia’s leading lending institutions.
And because you’re a first home buyer, you may be eligible for a first home buyer or other grant. This grant may be available to Australian citizens or permanent residents who wish to buy or build their first home, which will be their principal place of residence within 12 months of settlement. As grant conditions vary from state to state, contact us to find out more about eligibility requirements in your state and how much grant money you could receive.
We will also liaise with the lender. It’s our job to do the hard work and you can focus on finding the right home for you. We’ll be there every step of the way to guide you through the entire home loan process – from application to approval.
As a first home buyer there are some Government Grants available.
1. $15,000 First Home Owner Grant – for New Homes Only (this can be either land and construction/ New established home or extensively renovated home that has not been lived in)
- 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 or your spouse must not have previously owned property in Australia that you lived in.
- You must be buying or building a brand new home.
- The value of the home including the land is less than $750,000.
- 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.
Important note: this is a rough guide only; Accomplish Finance will require a full assessment to determine your suitability for finance.
2. $25,000 Home Builder Grant – This grant is Limited and only available for build/renovation contracts signed before 31 December 2020.
These criteria apply to all persons, whether applying as an individual or as part of a couple
- You must not have previously received a Home Builder grant in any state or territory of Australia.
- You must be at least 18 years of age. (Companies and trusts cannot apply.)
- You must be an Australian citizen at the time you apply.
- Your 2018–19 or 2019-20 annual taxable income must be below:
- $125,000 for an individual
or - $200,000 for a couple.
- $125,000 for an individual
- You will be the registered owner on the title.
- The home will be your principal place of residence after completion or settlement.
- The contract is signed between 4 June 2020 and 31 December 2020 to:
- buy an off-the plan or new home valued at $750,000 or less and construction had not started before 4 June 2020
or - build a new home where the build amount and the value of the land (including any existing structures) is $750,000 or less
or - substantially renovate an existing home, where
- renovations cost between $150,000 and $750,000
and - value of property (home and land before renovation) is less than $1.5 million
- renovations cost between $150,000 and $750,000
- buy an off-the plan or new home valued at $750,000 or less and construction had not started before 4 June 2020
3. First Home Deposit Scheme – A government bond that replaces Lenders Mortgage Insurance.
To qualify for this you must have 5% genuine savings,
Build or purchase a home not Greater than $475,000 in Metro areas or $400,000 in regional areas
Earn less than $125,000 as single applicant or $200,000 for couples
4. Regional Boost Grant – $5,000
The regional home building boost grant is a state government initiative to help home owners in regional Queensland into their new home sooner.
It will give you $5,000 after the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000.
Eligibility
To be eligible for the grant:
- 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 or your spouse must not have received a previous regional home building boost grant
- you must be buying or building a brand new home
- the value of the home including the land is less than $750,000
- 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 home is being bought or built in a regional Queensland area
- you have entered into an eligible transaction.
Eligible transactions
An eligible transaction is:
- a contract to buy new home, including a substantially renovated home
- a contract to build a new home
- the building of a new home by an owner-builder.
The contract must be entered into between 4 June 2020 and 31 December 2020.
If you are an owner-builder who is building a new home, your build must have commenced from 4 June 2020 onwards.
We appreciate that you may understand the hurdles of purchasing property, but we invite you to enquire and allow Accomplish Finance to assist you. Our service is complimentary there is ‘NO FEE’ payable to us from you! As we are paid by the lender with whom we arrange your finance.
Establishing your Budget
Becoming a Home Owner will be one of the biggest decisions you will make.
Can you afford a loan?
The first thing you need to consider is; can you afford to enter the property market.
A Simple method to establish your approximate affordability is to; calculate your net monthly income against your current expenses, (excluding rent you are paying as this will no longer be an expense, unless you are purchasing an investment property, then also add the monthly rental income with your income); this will give you an indication of how much you may be able to commit to a proposed mortgage loan repayment.
Now that you have roughly worked out how much you may be able to commit to a loan repayment, the next step is to determine if your income is enough to service a loan.
This is a good time to contact Accomplish Finance; we are dedicated to our clients and will assess your affordability to enter the property market.
We will work with you and provide guidance as to how much deposit you will require and how much you may be able to borrow, and then help you to find a suitable lender to meet your needs from our panel of lenders when you are in a position to proceed.
It will also depend on how much deposit you have saved to determine roughly where you will fit into the property market.
If you are ready to proceed, we will be happy to assist you.
Important note: this is a rough guide only; Accomplish Finance will require a full assessment to determine your suitability for finance.
A good savings pattern is essential. This will confirm to the lender that you are responsible and more likely to commit to a loan repayment contract.
When you apply for a home loan generally the lender likes to see that you have saved genuinely 5% of your deposit over at least a six-month period. BUT WAIT…DID YOU KNOW THAT…
Lenders acknowledge that in today’s market it is difficult to save for a deposit. To make it easier to enter the property market 100% loans have been introduced by some lenders. If you are able to contribute as little as 3% of the purchase price, you could soon be in your home.
Your contribution does not have to be genuine savings;
Contact Accomplish Finance today to find out if you could be paying your own Mortgage and get off the rent cycle.
Genuine savings are considered as regular savings deposited into a savings account over a six month period; or term deposits held in the name(s) of the applicant for more than six months; or shares purchased and held in the names of the applicant for six months; or equity held in existing residential property; or sale equity proceeds of a property in the name(s) of the applicant.
It is best to complete a full enquiry with Accomplish Finance to determine how we can guide you into your own home. (Terms and conditions apply)
Important note: this is a rough guide only; Accomplish Finance will require a full assessment to determine your suitability for finance.
Finding the right type of home loan can be a daunting experience. In today’s market, lenders offer so many different types of products to attract new customers, but how do you determine which one is best. With so many products available, weeding out the right one can take considerable time and effort to find, if you were to visit each and every bank or lending institution.
That’s where Accomplish Finance would like to assist you by;
Becoming your Personal Bank manager;
Being available to you 24/7;
Finding you a loan that suits your needs;
Giving you continual service for the life of your loan
This is all a COMPLIMENTARY SERVICE TO YOU!
Other fees and charges may apply by the lender.
What are the advantages of applying for a Pre-Approval loan.
Before you shop for your home, YOU know you have Your loan;
- You can bid at auctions;
- You will have bargaining power;
- You will be in control.
There are advantages in applying for a pre-approval loan. Accomplish Finance can help you apply for a loan before you have found your house. The benefit to you is;
You will know your maximum borrowing; this will give you bargaining power when negotiating on the price you want to pay.
You will be pre-approved before you buy. Accomplish Finance will have already pre-qualified you for your loan with a lender that is satisfied that you can meet the repayments of a loan for the maximum amount that you can borrow, based on your income and existing commitments.
Your pre-approval may be subject to terms and conditions such as you finding a home and the valuation of your chosen property is acceptable by the lender.
Your pre-approval is generally valid for three months; this may be extended as long as your circumstances have not changed. Other fees, charges and conditions may apply to approve applicants.
Our panel of lenders offer a range of products from basic home loans to professional packages at competitive interest rates. We will help you by providing the relevant product information that meets your needs to help you make the right decision.
Our service is complimentary there is ‘NO FEE’ payable to us from you! As we are paid by the lender with whom we arrange your finance. Other fees and charges may apply by the lender
It is an important fact of purchasing a home loan; YES! You do have to pay for it. It will seem that everyone will have their hand out for some type of payment.
REMEMBER THERE IS NO FEE PAYABLE BY YOU TO US!
Our service is complimentary; our commitment to you is to help you find a home loan from our panel of lenders that suit your needs and put forward your application to your chosen lender for consideration. To avoid multiple enquiries on your credit report we ensure that we have collected all of the relevant facts and information to increase your chance of obtaining a successful application first time.
Accomplish Finance will disclose all terms and conditions and approximate fees payable that are ascertainable at the time to assist you with your purchase.
Important: it is recommended that you seek conformation from your solicitor/ conveyancing lawyer for accurate costs to ensure you have sufficient funds to complete your purchase.
Loan Fees
Application/Establishment Fee
This fee is payable to the lender it can vary from lender to lender and the product chosen. The fee generally includes; one valuation and the lenders solicitor fees. At times the lenders may offer a nil establishment fee for a special period to attract new customers. Other conditions, fees and charges may apply to approve applicants.
Mortgage Stamp Duty
This fee is payable to the Office of State Revenue (Government fee) of your state. The fee is calculated on the amount of your Mortgage and varies from state to state. Your solicitor may advise you of any concessions available for your type of purchase.(eg; First home owner)
Mortgage Registration
This fees is payable to the Land Titles Office of your state- the fee can vary from state to state.
Lenders Mortgage Insurance
This fee is payable to the lenders Mortgage Insurer. This insurance is to protect the bank against any loss, not you the customer, which is often misunderstood. You cannot shop around for this insurance, if required the lender will inform you of the cost involved. The benefit to you is you may get finance approval with a smaller deposit. The premium is payable by you if your loan value ratio (LVR) exceeds 80%, (if you apply for a Lo doc loan the premium may be payable on a lower LVR). Lenders Mortgage Insurance terms and conditions apply to approved applicants.
Valuation fee
In some instances the lender will pass this fee to you. You may have to pay this fee upfront to the lenders panel valuer
Settlement Attendance fee
Some lenders may charge this fee to attend your settlement.
Construction Progress Valuations
If you build a new home you may have progress valuation draw fees. This payment is to cover valuation inspections during construction to ensure that the work has been completed before a progress payment is made. Generally there are five draws and the cost varies from lender to lender.
Property Fees
Property Stamp Duty
This fee varies from state to state and is calculated on the purchase price of your property. This fee is payable to the Office of State Revenue (Government Fee) in your state. Your solicitor can advise you of any concessions available for your type of purchase.(eg; First home owner)
Property Transfer fee
This fee is payable to the Land & Title Office of your state. This fee can vary from state to state.
Your Solicitor
It is a good idea to get a quote from a solicitor who may help and advise you of other possible fees and required searches; Accomplish Finance can recommend reputable solicitors. (NOTE; We do not receive commission or any benefit from the recommended sources, we recommend them because of their dedication to their clients)
Ongoing fees and charges
Depending on the product selected for your credit purchase you may have ongoing conditions, fees and charges during the term of your loan.
Accomplish Finance will disclose conditions, fees and charges that are ascertainable at the time of your application to help you decide which loan meets your needs from our panel of lenders.
Accomplish Finance will arrange a suitable time with you, to discuss your needs and answer any concerns you may have.
To help you decide which lender you may choose to fund your home loan, Accomplish finance will prepare a loan proposal from our panel of lenders that are able to offer the features and benefits that you consider are important to your loan. This will help you make your own informed decision of which product you choose.
It is important to remember that if you have signed an REIQ contract that you will need to obtain your finance within the finance clause of that contract. Generally this is fourteen days from date of the signed contract.
We will prepare your loan proposal as clearly as possible to ensure that you have a clear understanding of the proposal to help you make the right choice.
The loan proposal will consist of:
Clear factual information outlining
The features and benefits of the product
Ongoing conditions, fees and charges
Indicative interest rate supported by a comparison schedule
A schedule of monthly, fortnightly and weekly repayments
Establishment loan fees that are ascertainable
Approximate property fees that are ascertainable
Required supporting documentation check list
When you have made your decision which lender you would like to apply with we will assist you to complete the loan application and request that you sign the privacy consent document.
We will submit your application to your chosen lender for consideration and keep you informed of the progress at all times.
Once we have submitted your application to the lender for consideration, we have outlined the following steps to help you understand the process.
The lender will assess your application often within 24-48 hours. At this point they may offer finance pre-approval subject to certain conditions; of an acceptable valuation of the property offered for security and or pending verification of further information.
An independent valuation will be ordered. The valuer will contact an authorised person to access the property to complete the valuation.
The valuer will complete a valuation report of the property and submit that report to the lender for further consideration.
If the valuation is acceptable by the lender and all other conditions have been met, the lender will issue a formal letter of offer to you. You will need to sign this offer and return it to the lender promptly.
If you accept the offer, the lender will instruct their solicitors to prepare your mortgage loan documents and arrange for them to be delivered to you or your solicitor.
It is advised that you seek independent legal advice from your solicitor before signing your mortgage loan documents to ensure that you have a clear understanding of the contract you are entering into. You must return the mortgage loan documents back to the lender promptly.
Your solicitor will liaise with the lender to arrange a settlement date.
Before settlement your solicitor will prepare a settlement statement and advise you of any funds that you need to provide for settlement.
You will be notified once your settlement has been completed.
“Congratulations”, you are now able to take possession of your property.
*Other fees and charges may apply by the lender
