2014: The Year of Purchasing Your Own Home - Part 1

January 10, 2014
Caroline Jean-Baptiste

Part 1: It’s Easier Than You Think

 

There are a variety of initiatives, government assistance packages, and savings accounts out there that can help you realise your property ownership goals sooner. The following list contains a bunch of ways you can stretch your savings further. Mortgage Choice can provide expert advice on the best ways to assist you and how to maximise your benefits – tailored to your specific circumstances.

 

  • Queensland Government’s Great Start Grant:

In 2012 the Queensland Government introduced a grant of $15,000 for people building or buying their first house, apartment, or townhouse.

To qualify, the home must be the first you – or your spouse – have owned; it must be less than $750,000 in value; you must move in within 1 year and live in the home continuously for at least 6 months; and you must be an Australian citizen or permanent resident.  

 

More info can be found by following the link below, or chatting to Mortgage Choice Inner North Brisbane.

https://greatstartgrant.osr.qld.gov.au/index.php

 

  • First Home Saver Accounts: 

These accounts are a great way for you to build up your deposit because the government will add to your savings. Each financial year the government will make a 17% contribution on the first $6,000 you deposit. (For example, if you deposit $6,000 the government will chip in an extra $1,020). Another great feature of these accounts is the reduced tax rate of 15% applied to any interest earned.  

 

There are some rules, including having to deposit at least $1,000 each year over 4 years, but Mortgage Choice can help you work through these.

https://www.moneysmart.gov.au/managing-your-money/banking/savings-accounts/first-home-saver-accounts

 

  • Low-Documentation Home Loans:

“Low-doc” home loans are a type of loan available to people – often self-employed - who may not have the paperwork normally required to obtain a traditional home loan.

These loans generally do not require the usual proof of income documents, such as tax returns, but instead require a declaration from the homebuyer that they can afford the loan.

While low-doc loans often incur a slightly higher interest rate, or require a greater deposit, they are sometimes the best (or only) way for people who’ve recently started a business or changed jobs to receive a home loan.  

 

If you’re self-employed, or worried you may not have the documents needed to get a home loan, have a chat with us and we’ll make buying your first home seem a whole lot easier!  

 

  • 40-year Loan Terms:

If you’re looking to keep your repayments down, or have limited finance to put down initially, a longer-term loan may enable you to enter the property market sooner.

While you’ll have to pay significantly more interest over time, it will reduce the regular financial commitment. For example, a $350,000 loan with a 6% interest rate over 40 years (as opposed to 25 years) will save the borrower over $70 per week.

However there are limited products of this high-risk loan variety on the market, and it is very important to chat with an expert and consider all pros and cons.

 

We’re always on hand to offer friendly, personalised advice, and chatting to our team may uncover that 40-year loan is perfect for your current situation.  

 

If you’re interested to learn more about any of the ideas mentioned above, or are keen to make 2014 the year you purchase your own property, call us now on 3366 8604 to arrange a meeting.

Posted in: First home buyers

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