A Quick Overview

Details Description
Customer Goal To build a home in NSW with the help of the First Home Guarantee (FHBG)
  • First-time buyers facing complexities and anxieties of securing a construction loan with a low deposit.
Loan Amount $703,000
LVR and Term 95% Loan-to-Value Ratio (LVR) over a 28-year term
  • Lian: $60,000 yearly
  • Kate: $84,000 yearly
Solution Swiftly securing a spot in the FHBG, guiding them through the FHOG application, negotiating a favourable interest rate, and providing ongoing support throughout the construction process.

A Young Australian Couple’s Dream: Building Their First Home

Harper and Liam Pine, a couple in their late 20s, were just like many first-home buyers – excited but anxious about taking the big step into homeownership. Both permanent residents of Australia, Harper and Liam held stable full-time jobs with a combined income of $144,000. They were eager to purchase their first home and had saved $40,000, but they knew the journey wouldn’t be easy.

Their dream was to build their own home in a lovely neighbourhood in New South Wales. With a modest deposit, they saw the First Home Guarantee as a valuable opportunity to make their dream a reality.

Challenges Many First-Time Builders Face

Harper and Liam faced several challenges that might sound familiar to many first-time builders:

  • Overwhelmed as First-Time Buyers: New to the homebuying process, they found the maze of loan applications, financial jargon and critical decisions daunting.

  • Low Deposit Concerns: With only a $40,000 deposit, they were anxious about securing a construction loan with a 95% loan-to-value ratio (LVR).

  • Complexity of Construction Loans: Securing financing for both land and construction, with progress payments and other specifics, was daunting.

  • Finding the Best Interest Rate: They were concerned about the long-term impact of high interest rates and wanted the best deal possible.

  • Managing Progress Payments: Understanding and managing progress payments during construction was completely new to them.

  • Navigating the First Home Owner Grant (FHOG): They needed guidance on how to correctly apply for the FHOG.

  • Shorter Loan Term: They wanted a 28-year loan term, not the more common 30 years, to pay off their mortgage faster.

These challenges left Harper and Liam feeling uncertain. That’s when Home Loan Experts’ Mohit Pradhan stepped in. Mohit is an award-winning Mortgage Broker renowned for his dedication and expertise. He supplied the guidance and support they desperately needed.

Expert Guidance Every Step of the Way

From the start, Mohit explained the entire loan process in simple terms, outlining each step Harper and Liam needed to take to secure financing for their home build. He analysed their borrowing power and found a lender offering a construction loan that perfectly matched their needs.

Securing A Spot In The First Home Guarantee

Knowing how crucial the FHBG was for Harper and Liam, Mohit took swift action to book a slot in the scheme. He ensured they met all the requirements. To simplify the process further, Mohit’s team guided them through lodging the FHOG, handling the application on their behalf to make it hassle-free.

He also explained how the scheme could help them avoid Lenders Mortgage Insurance, which greatly relieved and excited the couple.

Negotiating The Best Rates for Their Construction Loan

Using his extensive network, Mohit negotiated a reduction of 2.68 percentage points from the standard variable base rate, securing an interest rate of 6.15% for the construction loan. He even arranged for their annual fee of $395 to be waived for the first two years, thanks to his top broker status.

Achieving Loan Approval and Beyond

With Mohit’s guidance, Harper and Liam’s loan of $703,000 was approved. The loan was split into $203,000 for the land and $500,000 for construction, with an LVR of 95% over a 28-year term.

Even after loan approval, Mohit’s support didn’t end. Home Loan Experts Customer Care team continued to assist Harper and Liam with their construction and progress payments, ensuring they always knew what to expect.

Loan Product Structure:

Interest Rate: 6.15% (Variable)

Term: 28 years

Features: Redraw, extra repayments, interest-only until construction is completed

A Happy Ending For The First-Time Builders

Harper and Liam were overjoyed with how smooth the process of building their dream home turned out. They couldn’t stop praising Mohit and the team for their exceptional service and continuous guidance. Grateful and satisfied, they plan to refer friends and family to experience the same outstanding support when building their own homes.

Build Your Future Home With Confidence – We’ll Lead the Way

Are you feeling overwhelmed by the thought of building your first home in Australia? Don’t let the complexities of construction loans hold you back. We’ve helped thousands of first-home buyers like Harper and Liam achieve their dream of building their own home. Let us show you how we can help you, too. Call us at 1300 889 743 or complete our free online assessment form and we’ll contact you.