Finance for First Home Buyers
I remember the days when buying your first home meant a very scary trip to the Bank Manager. Unless you had a truck load of cash, they treated you a bit like a second class citizen.
Thankfully times have changed and getting finance for your first home is so much easier. Sure, you’re going to have to do a bit of homework, get some pay slips together, work out how much you spend a month (liabilities) and what other assets you have, but it’s pretty basic stuff. After all, no one is going to give you probably the biggest loan of your life without a few details.
Now is a great time to get finance. Interest rates are the lowest they’ve been in years and we have some great offers on new homes, which are the best value you’ll find.
Another great thing is that you don’t have to go directly to a bank. You can go to a Mortgage Broker like my mates at our affiliate, InReach Finance. The good thing about Brokers is that they work with a huge range of banks and financial institutions on your behalf to find the best deal that suits your needs.
Some home loans have no deposit, some low deposit and some are interest only – there’s a huge choice. That’s why a Broker can help you determine what’s best for you. Plus, if you’re a first home buyer, there’s a bunch of other benefits. I asked Dean at InReach Finance to give me the low down and I’ve got to tell you, it sounds pretty good to me.
First Home Owner Grant (FHOG)
If you qualify as a genuine first home owner you can get a $10,000 grant. It’s not a loan. It’s basically the government giving you ten grand to build your first home – the best handout the government may ever give you. And you’ll be ahead of your mates who are buying an established home because it’s only available on new homes.
Buying an established home means you have to pay stamp duty on the total purchase. However, if you build there is no stamp duty on the construction cost or vacant land under $300,000. Another winner for first home buyers.
The WA State Government has helped low income earners to get into a new home by introducing the Keystart loan, whereby you can get a loan for as little as 2% deposit. You won’t have to pay mortgage insurance (which most banks will insist on, and could add another $15,000 to your loan) and here’s what I reckon is a pearler – you only have to pay $50 a week off your loan while your new home is under construction.
I am not a finance expert so don’t take my advice, but what Dean at InReach Finance has told me, it sounds like now is the perfect time to buy your first home.
So if you like the thought of getting out of renting or moving out of home, give Dean and his team a call. You could be owning your own home sooner than you think.