The Complete Guide to Financing Your First Home

In order to get yourself in a position to buy, you'll need to engage an expert, save for a deposit, qualify for financial assistance, and all the rest.

Now let's get started !

Early engagement with an expert

A financial expert should be contacted after you've conducted a financial health check and have a good understanding of your financial situation.

A financial expert should be contacted after you've conducted a financial health check and have a good understanding of your financial situation.

Banks or mortgage brokers

It can be confusing to figure out which loan is right for you when there are so many lenders offering so many different types of loans.

Mortgage brokers, whether from your bank or independently, can make the home loan process easier by acting as a mediator. Instead of searching online for a lender that fits your financial needs and property objectives, brokers will offer you various loan options from different lenders. This eliminates the need for you to do the heavy lifting. Additionally, utilizing your current bank may offer perks such as interest offsetting or debt consolidation opportunities

In addition, Australian mortgage brokers and banks have a duty to act in your best interests, so you know you'll always get the very best interest rates, loan fees, repayment options, and other loan features.

It is always advisable to inquire about any associated fees or charges before engaging the help of a financial professional.

Victoria Australia

Financing options for first-time home buyers

FHOG (First Home Owner Grant)
The Victorian FHOG offers a lump sum payment of $10,000 to first-time home buyers planning to build or buy a new home valued up to $750,000. According to the VIC government website, this new build must be your principal place of residence.

Exemption or concession for first-time home buyers
A stamp duty exemption may apply to first home buyers who build or buy homes worth up to $600,000, whether they are new or established. For properties valued between $601,000 and $750,000, first home buyers may still qualify for a concessional rate of duty. On the VIC government website, you can find out more about the First Home Buyer Duty Exemption and Concession Exemption.

What is the maximum amount I can borrow for a home loan?

It is important to determine your borrowing capacity before you begin buying your dream land and building your dream home. The more you know about a lender's willingness to lend you, the more you will be able to budget wisely based on location, lot size, design and features.

There may be slight differences between lenders when it comes to how much risk they will accept, but they all calculate your borrowing power using the same factors.

The state of your finances

If interest rates rise, you will be able to make your repayments

Lenders generally examine things like your :

Streams of income

Limits on credit cards

Living expenses

Dependents

Indebtedness

Type of loan

Borrowing Power Calculator

Online borrowing power calculators are available from most lenders if you want to get a rough idea of how much you can borrow for a mortgage. Based on your current financial situation, you can use these to estimate how much they might be willing to lend you.

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