Re: What to expect when applying for a first home buyer loan?
Posted: Thu Jan 24, 2019 4:58 pm
Hello Ollie. Welcome to the forums.
Congratulations on the baby. Before applying for a first home buyer loan, there are 6 essential questions you need to answer:
Cheers,
Congratulations on the baby. Before applying for a first home buyer loan, there are 6 essential questions you need to answer:
- 1. How much deposit do I need? You need at least 5-10% of the property as a deposit. Most banks require that the deposit is in the form of genuine savings.
- 2. How much does a home loan cost? On top of the interest rate, getting a home loan also comes with additional costs to complete the purchase of the property including stamp duty, transfer fee, registration fees, conveyancing fees, and Lenders Mortgage Insurance (LMI) etc.
- 3. Are you eligible for a first home owners grant (FHOG)?
Some states offer grants or stamp duty concessions to first home buyers. Visit your relevant state revenue office website to find out the eligibility criteria and how much the grant is. - 4. How much is LMI? If your loan amount is more than 80% of the purchase price, you’ll have to pay LMI as a one-off fee. You can calculate the LMI premium you'll pay based on how much you are borrowing.
- 5. What application documents do I need to provide?
Here’s a list of documents needed for all types of loans:
A.Short Application Form (provided by your broker)
B.Three forms of identification such as a driver license, passport and Medicare card.
In addition, PAYG Applicants also need to provide the following documents:
A.Your two most recent payslips
(optional) A letter from your employer confirming your income.
B.(optional) Your last year’s group certificate.
If you can’t provide the above documents or they are not up-to-date, there are low doc options available. - 6. How can a mortgage broker help me?
Mortgage brokers can objectively assess your needs and guide you through the entire home loan application process all the way to settlement.
Their services are normally free and they only get paid commission from the bank when they actually approve your mortgage.
It's in their interest to find you the home loan solution that meets your needs and will help you achieve your long-term goals.
Cheers,