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Free Home Loan Review

I want to buy my first home

There are different products available depending on your savings history and deposit. Mortgage insurer's guidelines apply when you borrow greater than 80% of the property value. Following is a general guide:

	If you have a 20% deposit and extra to cover your purchase costs, then a savings history is not required.
	If you have saved 5% of the purchase price over a minimum 6 month period you are able to borrow up to 95% of the value of the property subject to your borrowing capacity and other eligibility criteria.
	If you don't have a deposit you can get a No Deposit Home Loan allowing you to borrow 100% of the purchase price. You may still need additional funds to cover purchase costs. Loan types are restricted.
	Lender's mortgage insurance can be avoided if a family member is willing to offer their residential property as additional security. Their guarantee can be limited to a specific amount.

There are 2 government schemes for eligible first home buyers:

	First Home Owners Grant (FHOG), a federal government initiative, is a one-off payment of $7,000.
	First Home Plus Scheme (NSW) provides exemptions or concessions on both the transfer and mortgage duty.

Details for both schemes can be found at www.osr.nsw.gov.au or obtained by phoning 1300 130 624

trap	First home buyers tend to underestimate the costs involved in buying property and the ongoing cost of property ownership. Borrowers tend to believe claims made in brochures or software simulations about a specific product without understanding the assumptions behind the claims.
tip	A pre-approval is essential. Take the time to complete a budget to ensure you can manage your proposed debt. Exercise caution when selecting a lender or product based on promotional material and simulations.