First Home Buyer Loans
Frequently asked questions
What does it cost to buy a property?
Additional costs involved in purchasing a property include, stamp duty (a state government tax), lenders mortgage insurance, your conveyancer/solicitor, inspections and any additional bank fees with your loan.
How much can I borrow?
Different lenders will lend you different amounts, so there is no one answer here. A broker can estimate what your borrowing capacity generally is. See here for basic estimate.
What is Stamp Duty and how much is it?
Stamp duty is a state government tax on property purchases. There are often exemptions and reductions for first home buyers. On average it is around 2% of the property value. See here for NSW calculator.
What is a guarantor?
A guarantor is someone (usually a family member) who offers their own assets as security for a portion of your loan. This can be done so you may not have to pay lenders mortgage insurance however a guarantor does not generally assist with your loan servicing and borrowing capacity.
What is Lenders Mortgage Insurance (LMI)?
An insurance product you have to purchase if you do not have a 20% deposit. LMI protects the bank if you default on your loan. LMI can be added to your loan amount. More information and how to calculate LMI here.
What is a conveyancer?
A conveyancer or a solicitor is the person who acts for you when purchasing a property. They will review the sale contract and co-ordinate settlement and also be your representative in dealings. Recommended conveyancer - Select conveyancing.
What inspections are needed?
If you are purchasing a house a building and pest inspection report is highly recommended to see if the property has any pests such as termites and if it is structurally sound. You may also need an electrical and plumbing inspection if the property is old or appears to have issues with dampness or power. If you are purchasing a strata title unit a strata report is recommended, your conveyancer or solicitor can obtain the strata report.
Contact us today if you would like to know more and get a copy of our first home buyers guide.