First home buyer here - What are my options?

Any general questions you might have in regards to loans and finance.
Kara
Posts: 3
Joined: Tue Jul 30, 2019 7:02 pm

First home buyer here - What are my options?

Postby Kara » Tue Jul 30, 2019 7:03 pm

I’m a novice when it comes to getting a home loan, but I am looking around to purchase my first home soon. What are my options like?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7706
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: First home buyer here - What are my options?

Postby Otto Dargan » Tue Jul 30, 2019 7:37 pm

Hi Kara,

Thank you for reaching out to us and welcome to the forums.

The home buying process for a first-timer might seem like a daunting process, but there are many options and support you’ll get.

The options available for first time home buyers are as follows:
  • You can borrow up to 105% of property value with a guarantor loan.
  • You can borrow up to 95% of the property value without a guarantor.
  • You can even borrow up to 90% to 100% with no Lenders' Mortgage Insurance (LMI) if you are working as a doctor, lawyer, accountant or sports professionals.

To increase your chances of approval:
  • You need savings of at least 5% to 10% of the property value.
  • You do not need a deposit if you have a guarantor.
  • You can even use a gift from your parents as part of the deposit.
  • The first home owners' grant (FHOG) can be a part of your deposit.

You can check out our first home buyers’ checklist for more details. Our best advice would be to find a mortgage broker who can help you buy your first home.

Our expert mortgage brokers specialise in helping people buy their first home. Contact us on 1300 889 743 or complete our free assessment form.


Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Kara
Posts: 3
Joined: Tue Jul 30, 2019 7:02 pm

Re: First home buyer here - What are my options?

Postby Kara » Tue Jul 30, 2019 7:59 pm

Are there any red flags that would stop me from getting a loan? I have only started working at my job for a year and do not have much savings right now.

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7706
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: First home buyer here - What are my options?

Postby Otto Dargan » Tue Jul 30, 2019 8:06 pm

Hi Kara,

There are many factors that lenders will look into. Most of these lenders have their own credit scoring system that will check:

  • Your credit history which includes late and missed payments, defaults, bankruptcy, etc on your credit file. You can use our credit score calculator to find out your score instantly.
  • Your financial stability including your job history, address and the ability to repay debt.
  • The type of property you intend to buy and how easy it would be to sell based on the bank’s valuation.

Some of our lenders can allow you to borrow up to 95% of the value of the property, even if you’ve just started a new job. You can use the new job loan calculator to see if a lender can help.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Kara
Posts: 3
Joined: Tue Jul 30, 2019 7:02 pm

Re: First home buyer here - What are my options?

Postby Kara » Tue Jul 30, 2019 8:07 pm

I just used the new job calculator and found out that I could only borrow between 80% to 85% even without genuine savings. I just wanted to know what constitutes genuine savings to see if I can increase my LVR?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7706
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: First home buyer here - What are my options?

Postby Otto Dargan » Tue Jul 30, 2019 8:22 pm

Hi Kara,

Genuine savings are funds that a home loan applicant has saved themselves gradually over time. Most lenders require at least 5% of the property value as savings saved over three months.

The following types of savings are considered to be examples of genuine savings:
  • Savings held or accumulated over 3 months.
  • Term deposits held for 3 months.
  • Shares or managed funds held for 3 months.
  • Equity in real estate (varies depending on the lender).
  • If you’ve been renting for the last 3 months then some exceptions may apply.
  • Even salary sacrificing under the First Home Super Saver Scheme can be acceptable.

You can use our genuine savings calculator to view how your savings will be viewed by lenders and if you meet their genuine savings requirement or not.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a no genuine savings home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


Return to “Home Loan Forum”

Who is online

Users browsing this forum: No registered users and 2 guests