Looking To Buy Your First Home? Use A Mortgage Broker To Help!
Congratulations on Embarking on Your First Home Buyer Journey!
Welcome to the world of first-time homebuyers, where questions abound and excitement runs high. You're not alone—we've encountered countless enquiries from first home buyers, like: How much can I borrow? What first home buyer grants are accessible? Will my approval go through? Is a guarantor necessary? We're here to address every one of them.
As your trusted local mortgage broker, we bring a host of advantages for first home buyers:
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Extensive Lender Network: With access to 30+ lenders, including participants in the First Home Guarantee scheme, we save you the legwork by sourcing the best options for you.
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Expert Counsel: Count on us as seasoned financial experts who have navigated home loan applications countless times. Our know-how ensures the process is done right. If you looking to buy on the Central Coast, our local knowledge and contacts can be invaluable.
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Exclusive Offers: Gain access to unique deals and discounts that remain concealed from the general public but often find their way to mortgage brokers.
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Flexible Availability: Unlike the 9 to 5 grind, we're here for you on your schedule. Choose in-person sessions at our Charmhaven (Central Coast) office or convenient Zoom meetings.
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Government Schemes: The maze of first home buyer benefits can be daunting. Allow us to demystify first home guarantee schemes, grants, and stamp duty exemptions, guiding you every step of the way.
Embrace this exciting milestone with confidence, knowing you have an experienced award winning Central Coast mortgage broker by your side.
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Unlocking First Home Buyer Grants: Your Guide to Available Schemes
Are you curious about the array of first home buyer grants waiting to be explored? Both at the federal and state levels, there exists a multitude of schemes, grants, and rebates designed to support first home buyers. Here's an overview of some of the most frequently utilised options in New South Wales:
The First Home Guarantee Scheme
What is it? This federal-based initiative guarantees up to 15% of a deposit equivalent for banks, benefiting the first 35,000 applicants across Australia this fiscal year. To simplify, with a mere 5% of the purchase price saved, the government steps in with a guarantee of up to an additional 15%, effectively mirroring a 20% deposit to the bank. The perks? Exemption from Lenders Mortgage Insurance (often amounting to substantial sums) and a reduced interest rate.
Eligibility: Open to Australian Citizens or Permanent Residents who haven't owned property in the last decade and possess a minimum 5% deposit for purchasing an established home to reside in (can be 2% in some circumstances). Income limits apply, set at $125,000 for a single applicant or $200,000 for combined applications. Partnerships can now include friends or relatives, not limited to couples.
Property Price Caps: Varied by state and location—$900,000 in Sydney or close proximity to regional cities (e.g., Gosford, Newcastle), and $750,000 for the rest of NSW.
Application Process: Your mortgage broker will provide the required declaration form and help compile the necessary supporting documents. This information will be integrated into your loan application, with the bank securing your place in the scheme upon approval.
Validity: Scheme placement holds for 90 days. If you don't make a purchase within this window, your spot advances to the next applicant. Note that not all lenders partake in the scheme, so your mortgage broker will match you with a participating lender that suits your criteria.
Ownership and Flexibility: The government doesn't claim ownership over your property. Plus, you're not confined to the chosen lender—you can refinance to any lender later on.
Refinancing: When refinancing a scheme-based home loan, your mortgage broker usually obtains an upfront bank valuation for equity evaluation. With 20% equity or more, you're free to refinance to any lender. Otherwise, a refinance to a scheme-participating lender without cash-out is necessary to avoid lenders mortgage insurance.
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NSW First Home Buyers Assistance
What is it? The NSW First Home Buyers Assistance is a state-level initiative that provides a complete waiver of stamp duty for first-time home buyers purchasing established dwellings valued up to $800,000. Discounts are applied for purchases ranging from $800,000 to $1 million. For construction loans, a land purchase limit of $350,000 is set for full stamp duty exemption, with discounts available up to $450,000.
Stamp Duty Calculation: If your purchase falls above the waiver purchase limit, your mortgage broker will calculate the applicable stamp duty.
Eligibility: The NSW First Home Buyers Assistance is open to Australian Citizens or Permanent Residents who are first-time home buyers. There is no income limit as seen in the federal First Home Guarantee scheme.
Application Process: Once the bank issues formal approval, your appointed conveyancer or solicitor for the property transaction will apply for the NSW First Home Buyers Assistance on your behalf.
What about the First Home Buyers Grant?
Previously, the NSW state government offered a first home buyers grant alongside the stamp duty waiver. However, this has now been replaced by the New Homes Grant, applicable exclusively to brand-new properties that have never been occupied before. In some cases, it may also extend to substantially renovated homes, such as knock-down rebuilds, if the owner sells immediately after completion.
Key Details of the New Homes Grant:
- Current Amount: $10,000
- Eligibility Criteria: Applicable for property purchases up to $600,000 or for combined land + construction costs not exceeding $750,000.
- Application Process: Apply through Revenue NSW or submit necessary paperwork to your chosen bank, if using the grant to reduce your home loan amount.
- Disbursement: Payment is made upon transaction completion or the first construction invoice payment. It cannot be utilized as genuine savings or an initial deposit.
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Can I draw on my Superannuation for the deposit?
In a nutshell - no. Currently, utilising superannuation funds for purchasing your home is not allowed under existing legislation. While online ads might suggest using super for property acquisition, this pertains to loan structures within Self Managed Super Funds for investment properties only.
Do I need a guarantor?
Generally, a guarantor provides an equity guarantee, not a payment guarantee. With the available grants and schemes, the need for a guarantor is minimal. If you don't meet the criteria for existing schemes, a guarantor can assist in avoiding Lenders Mortgage Insurance, provided you can manage repayments independently. This complex strategy is best discussed with a mortgage broker.
Unlocking Your Path to Homeownership: Our Complimentary Service
Experience an easier process of obtaining a mortgage as a first home buyer with our no-cost service. You pay nothing for our assistance—we're directly compensated by lenders when we introduce a new loan to them. Your journey is free from added expenses.
As a first home buyer, navigating the mortgage landscape becomes seamless and efficient with a mortgage broker.
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Wide Lender Network: Gain access to a broad spectrum of lenders, broadening your options for the ideal mortgage.
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Expert Guidance: Receive seasoned advice tailored to your unique situation and preferences.
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Personalized Service: We provide custom-tailored service, saving you time and money while securing the optimal deal.
Our Brokers Will:
- Determine Your Borrowing Capacity: Understand your financial potential.
- Present Lender Options: Offer lender choices aligned with your needs.
- Negotiate Special Deals: Secure exclusive offers through negotiation.
- Guide Application Process: Navigate you from application to approval and settlement.
- Provide Ongoing Support: Be available for your queries at any time.
Your homeownership journey starts with ease—rely on our complimentary service for an efficient path to your dream home.
At Mortgage Choice Charmhaven, we're here to help you achieve your dream of owning your first home. Contact us today to book an appointment.
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