First home buyer loan

Buying your own home in Australia

Buying a home is the most important investment in our life. But it is not easy to have all money to pay it.

If you are thinking in buying your first home, you can consult some specific types of loans available in Australia. A loan permit you to get all the money you need and pay it monthly, paying an addition rate to pay the loan. The loan rate can be fixed or variable. We will discuss it later here on Money Australia blog.

Find your home and make an offer

 Before thinking in the best loan for you, you should first search the home you want, make an offer (depending on home loan approval), and fix the value you need (discounting on it the savings buy your home – the more money you have in cash, the best for you, since how higher is the value you will request to the bank higher would be your taxes amount). Note that you will need a least of 10% of the property value, major part of banks only will finance you in 90% of the property value.

The rate home loan - find the best home loan

The rate home loan is the value you need to compare when you are trying to find the best first home buyer loan. You should pick the loan with lowest rate. This rate depend on your age, your finance overall and the property value, if the loan is made by a single or a couple etc. At this time, is common to see rate between 5 and 7 % for a 25 years old person. The best way to consult the loan rates is to check all those websites of banks and companies offering loans and do an online loan simulation.

To get a first home buyer loan, you have to be eligible for the FHOG – First Home Owners Grant (the principal checks here: being an Australian citizen or have a permanent visa and you or your partner should never own a home in Australia before).

Some terms that you should be familiar with when you go to search n home loan

LVR – means the “maximum loan to value ratio” – it is the maximum percentage you can borrow and is a percentage. For example, if a property value is 500 $ k, and your LVR, that means that you can borrow 450 $ k.

Loan sizes – you have a minimum loan size and a maximum loan size. These are the minimum and maximum borrow values available. The minimum loan size can be for example 15 $ k (if you have the rest of the value, for example). The maximum loan size is the maximum borrow value, and it is not limited.

Redraw facility allows you access to the available funds in your home loan and. You can also split the loan into two or more accounts. You can have one with fixed and other with variable rates.

Note: This is an post to help Australian citizens or permanent visa to fin a good home loan. This information should be updated adding relevant information regarding to home loans in Australia. If you want to help, please drop a comment with your experience with home loans.

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