In 2018, the first-time homebuyers were active in the market. The “negative” market information gave the first-time buyers a rare opportunity. The seller offered a reasonable price, the developers were priced properly, and there were still many unsold units in the market. The products were really Dazzling.

Banks also launched the loan products for first time home buyers through this shareholder style.

The above chart shows that Westpac’s loan approval cycle is significantly longer than in the past. It is enough to see that the current number of applications is very large. Most of them are from first-time buyers.

I have collected the five most frequently asked questions from first home buyers and hope to give home buyers some help.

How much money does the first home buyer need?

In general, home buyers need at least 10%-20% of the real estate price as a deposit. For example, for a property valued at A$600,000, applicants need at least $60,000-$120,000 in deposits before applying for a home loan.

If the applicant’s loan capacity is insufficient, the deposit amount needs to be higher.

For first-time homebuyers who only have 10% of the initial payment, most banks require the applicant to provide Genuine savings. That is, a deposit with a 5% room rate must be kept for at least 3-6 months in the applicant’s account.

For first-time buyers, if they do not have sufficient deposits, they can turn their gaze to the 期房. A 5%-10% down payment can lock a suite and fight for one to two years to raise funds.
What are the costs of home loans?

First, the biggest cost of a home buyer’s home loan is the interest rate.

In addition to repaying the principal and interest, there are some other costs for buying a home. As a general rule, homebuyers will spend approximately 3-5% of the real estate value to cover these additional costs, so if it is 600,000 Australian dollar house prices, it will cost approximately 30,000 Australian dollars to complete the entire purchase.

These costs include:

Purchase stamp duty: Property tax levied by the state government. This is the highest cost associated with the purchase of a home. For the first time buyers, the current government has a corresponding tax deduction. (Please consult a real estate lawyer)

Transfer fee: Charge the fee when registering the name of the home buyer on the property name and deleting the supplier.

Registration Fee: Register the government fee for the lender’s mortgage on your property name.

House Transfer Attorneys’ Fees: Lawyers can help homeowners look up sales contracts to ensure that the terms are favorable to home buyers. Usually, the cost of attorney services is around AUD 1,500-3,000.

Inspection fee: The purchase of the property may require construction inspections, pest inspections (approximately $600-1000 or so).

Home Loan Fees: Some lending agencies may need to pay additional fees (such as application fees, valuation fees, etc.)

Bank insurance premium (LMI): If home buyers borrow more than 80% of the room rate, then the guests need to pay bank loan insurance fees, which is a one-time fee for bank protection.
How much is the LMI bank insurance fee?

If the property is worth 500,000 Australian dollars and the loan amount is 450,000 Australian dollars, then the loan-to-value ratio (LVR) is 90%, a rough estimate, the insurance cost is about 5000-8000 Australian dollars or so, the insurance cost depends on the loan ratio and the bank that applies.

This fee is a one-time expense, usually added to the total loan amount for a total of 30 years, or it can be paid directly.
What loan products are more suitable for first time home buyers?

For me personally, I tend to focus on the same interest rate and also lock in the 2-year interest rate product. Although the monthly repayment amount is higher than the interest only, the principal is accelerating, and it will save a large amount of money compared to only interest. Interest expenses.

At present, for example, Nab’s first home purchase for two years, 3.69% fixed-rate products is very suitable. However, it should be noted that when there are more deposits in hedge accounts, interest rates should be locked by ratio.

If the amount of loans is relatively small, usually less than 400,000 can be considered basic loan products, the current Westpac basic products fixed for 3.79 is also very competitive.
Can I get First Home Purchase?

The First Home Purchase Grant (FHOG) is a one-time grant and the government helps first-time home buyers to enter the real estate market.

First-time homebuyers need to meet certain eligibility criteria to obtain this subsidy. Different state governments have different policies.

As a basic rule:

Each applicant must be a real person, not a legal person, such as a company or a trust.
At least one applicant should have a permanent visa or a citizen.
Each applicant must be at least 18 years old.
The total value of the property must be less than the maximum amount. Different states have different ceilings on property values.
This must be the first time homebuyers and spouses purchase homes and begin living continuously for at least six months within 12 months.

The first home purchase grant can be completed by yourself or through a lawyer.