First Home Buyer Guide
Buying your first home will be one of your most significant financial milestones, and there are many ways you can achieve this. We have plenty of tips for first home buyers to ensure you're informed at every stage of your journey.
First Home Buyer Guide
Buying your first home will be one of your most significant financial milestones, and there are many ways you can achieve this. We have plenty of tips for first home buyers to ensure you're informed at every stage of your journey.
- Finance Journey
- Deposit Options
- Types of Home Loans
Step 1: Get home loan healthy
Get home loan healthy
Step 2: Set your budget
Step 3: Supply supporting documents
When preparing your home loan application, your mortgage broker will need to collect supporting documents to verify your financial circumstances, including documents such as payslips, ID, bank statements and tax returns.
We’ve invested in technology to ease the collection of these documents and minimise the time and stress involved in this process.
Step 4: Choose a lender
Your mortgage broker will sit down with you to discuss your requirements and objectives for a home loan. This is critical information that will assist us in recommending a product that suits your best interests.
- Step 5: Obtain pre-approval
- Step 6: Purchase a property
- Step 7: Valuation
- Step 8: Bank Approval
- Step 9: Mortgage contracts
- Step 10: Final Checks
- Step 11: Settlement
- Step 12: Congratulations
Once submitted, the lender will typically take 3-5 business days to assess your loan application.
If the lender is happy with your loan application, they will issue you a ‘pre-approval.’ This means you have essentially ticked 6 out of the 8 required boxes, which include your income, savings, credit history, living expenses, account conduct with only satisfactory security (property) and valuation of the security outstanding to obtain full loan approval. Note: The lender will need to reassess your income, savings, credit history, living expenses and account conduct once you have secured a property.
Note: There is nothing you need to do for settlement. Your legal representative will complete this on your behalf.
There’s no one-size-fits-all when it comes to home loan deposits.
There’s no one-size-fits-all when it comes to home loan deposits.
We explore how much of a deposit you need for a home loan, along with the different deposit options that may be worth considering or exploring further below.
Low deposit home loan​
Lenders impose two additional requirements with low deposit home loans. They require the borrower to show evidence of 5 per cent ‘genuine savings’ and to purchase Lenders Mortgage Insurance (LMI).
Although they impose some additional requirements, low deposit home loans have some key advantages, which include the following:
– You can enter the property market sooner due to not needing to save the full 20%
– Additional funds left over for personal use such as renovations or investing
Guarantor and other deposit options​
A Guarantor Loan allows you to borrow up to 105 per cent of the purchase price to include purchasing costs such as stamp duty, legal fees and bank fees. A guarantor could be a parent or close family member offering up some of the equity in their property to guarantee your deposit.
The guarantor does not physically hand over the deposit to you – the lender will register a mortgage against the guarantor’s property or asset for the deposit. This can be up to 25 per cent of the purchase price of your property.
If your guarantor does not have an existing property or sufficient equity, but they have some savings, they can provide you with a non-refundable gift that can go towards your deposit.
First Home Buyer Government Incentives
Please see below relevant state SRO websites to find your specific incentives. required deposit.
âž” VIC
âž” QLD
âž” NSW
âž” ACT
âž” NT
âž” SA
âž” WA
âž” TAS
How much can I borrow?
Curious about how much you can borrow? Our home loan deposit calculator can help you to understand how much you can borrow, considering your current circumstances.
Types of home loans
There are many different home loan options available. We explore the four most common loans below. Your Inovayt Finance Broker can help you to determine which options best suit your needs.
Types of home loans
There are many different home loan options available. We explore the four most common loans below. Your Inovayt Finance Broker can help you to determine which options best suit your needs.
Variable rate loans
Variable home loans are where your interest rate will vary with market changes. This may mean that your minimum repayments will vary, generally inline with the cash rate set by the RBA.
Variable rate loans can be a great option for many customers, the advantages include:
âž” Save money if interest rates go down over the course of the loan.
âž” Capturing a lower initial rate
Deciding what’s right for you can be a difficult decision, however our team work tirelessly to find the solution that best fits you and your goals.
Fixed rate loans
The benefits of a fixed rate loan include:
➔ Certainty of repayments
âž” Locking in a lower interest rate before rises
Our team of mortgage brokers can work with you to find the right outcome for your needs.
Construction Loans
Construction loans are designed to help you build your dream home. It allows your finance to be paid in stages as the build progresses. Typically, you only pay interest on the amount drawn at each stage instead of the whole loan amount.
Construction loans will save you money over the course of the build, making it a great option for home builders.
Our team can walk you through the process step by step, to ensure you get to best possible loan, matched specifically to your requirements.
Guarantor Loans
Guarantor loans are a type of loan that requires a guarantor to co-sign for a limited portion of the finance. Essentially, this means the guarantor agrees to repay the borrower’s debt should the borrower default.
Guarantor loans are great for a multitude of reasons:
➔ Avoid LMI
âž” Get into the market sooner
Find out if a guarantor loan is right for you by reaching out to any one of our specialist mortgage brokers today.
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Why Choose Inovayt
Simple
We understand it can be challenging to apply for finance for your first home, but it doesn’t have to be. Our experienced team can help you easily apply for a loan that suits your individual needs.
Flexible
We understand that everyone has different needs, schedules and availability. We’re happy to meet face to face, over the phone or online at a time that suits you.
Solutions-driven
Let us help make your first home dream a reality. Our end-to-end financial solutions can support you throughout any stage of your life journey.
Simple
We understand it can be challenging to apply for finance for your first home, but it doesn’t have to be. Our experienced team can help you easily apply for a loan that suits your individual needs.
Flexible
We understand that everyone has different needs, schedules and availability. We’re happy to meet face to face, over the phone or online at a time that suits you.
Solutions-driven
Let us help make your first home dream a reality. Our end-to-end financial solutions can support you throughout any stage of your life journey.
Our experienced and friendly team can provide you with lifetime financial solutions by understanding your individual needs and goals.
1300 354 355
info@inovayt.com.au
Start your journey, contact Inovayt today
1300 354 355
Send us an email
info@inovayt.com.au