Ready to think about building your first home?
While the search for the perfect house and land package is definitely an important component in the process of achieving home ownership, another part that is equally essential is sorting out your home loan options.
While taking out a mortgage may seem like a daunting prospect at first, one way you can get on top of the process is to assess your financial health and determine what kind of loan you could qualify for.
Income and debt
Before you start considering different lenders and looking at the various home loan products available, it’s a good idea to work out how much you’re currently earning and whether your source of income is stable, as this will have a significant effect on how much you are able to borrow.
It’s also important to look at your levels of debt, and whether you can work to reduce your total amount of repayments – whether you’ve got credit cards, a student loan, car payments or anything else you’re currently paying off.
By undertaking an assessment of your personal financial situation, you can find out whether you can commit to taking on a mortgage.
Calculating how much you can borrow
It’s a good idea to take advantage of a free consultation over the phone or in person with one of our in-house Lending Specialist’s from Lendmark, to work out how much you can borrow for your home loan, as well as how much you could be charged for additional fees such as stamp duty.
Calculating these costs ahead of time will save you from dealing with any unexpected surprises further down the track, and help you become more prepared for committing to your mortgage.
To get practical, targeted advice about your own situation and what kind of home loans you qualify for, it’s a great idea to see a professional Lending Specialist about your finance options.
An experienced Lending Specialist will help you work out how much you can borrow, what you can afford and what you need from a home loan so that you walk away with the mortgage that best suits you.
*You must have a rental history of at least twelve months (previously 12 months). Your rental repayments should be at least 50% of the proposed home loan repayments.
You must be paying your rent and your bills on time.
You must be renting via a licensed real estate agent.
You still need 5% as a deposit, it just doesn’t need to be saved over a three month period. It can come from a gift, inheritance, cash, shares, bonus from work, term deposit or equity in another property.
The lease should be in your name alone or both you and your partner. You may still qualify if you are renting with other people, as long as you can prove a track record of prompt rent repayment via your bank account statements and your name is listed on the tenancy agreement.
If you meet the lenders criteria then we may be able to get your loan approved using rent instead of genuine savings.
Credit services provided by Credit Representatives of Lendmark Home Finance Australia Pty Ltd ACN 613 845 917 (Australian Credit Licence 384704).
The FHOG is a one-o payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence.
On 27 December 2016, the Government announced a temporary $5,000 boost to the FHOG. On 17 May 2017, the Government announced a change to the closing date for the $5,000 FHOG boost payment.
Eligibility for the boost payment will now cease on 30 June 2017 instead of 31 December 2017. The boost payment is available to eligible first home buyers who enter into a contract between 1 January and 30 June 2017 to purchase or construct a new home, and owner builders who commence laying foundations of their home between those dates.
First home owners may qualify for the grant and/or the first home owner rate of duty if they are either purchasing an established home or if they are building or purchasing a new home. The grant has:
geographically determined caps on the total value of the home;
residence requirements; and
eligibility criteria for applicants.
When a person is eligible, or would have been eligible, for the first home owner grant, a concessional first home owner rate of duty will apply if the value of the dutiable property is below certain thresholds.
How much is the FHOG?
Transactions entered into between 1 January and 30 June 2017 may be eligible to receive $5,000 boost plus the $10,000 grant or the consideration paid to buy or build the house if less than the grant amount.
For eligible transactions entered into on or after 25 September 2013 and on or before 31 December 2016, the grant is $10,000 or the consideration paid to buy or build the house if less than the grant amount.
For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than $7,000.
The Keystart ‘Low Deposit’ home loan is a variable interest rate loan which can be used by owner-occupiers to buy an established home or build a new house. It is available to both first and non-first home buyers and Keystart lend across the State of Western Australia.
Keystart Home Loan
Under this scheme, a low deposit home loan is available to help West Australians finance an affordable home where other home loan lenders cannot provide assistance. Keystart’s loan is only available for owner occupiers, who can then buy or build a home anywhere in Western Australia.
To find out of you qualify for a 2% deposit Keystart Home Loan speak to one of our in-house Lending Specialist’s today.