First Home Buyer
Custom Finance make it easy for the first home buyer. With access to over 25 different Mortgage Lenders, we will tailor a First Home Buyer Home Loan to suit your individual needs.
Buying your first home is probably the largest purchase you are ever likely to make so it pays to do some research first. Not only is it important to find the right property, it is just as important to find the right home loan.
The most important consideration for the first home buyer is to work out how much you can afford to spend on your new home. This will depend on how much deposit you have, and how much you can afford to borrow.
You will also need to put aside additional funds to cover stamp duty (if applicable), application fees, conveyancing costs and Lenders Mortgage Insurance (if applicable).
Once you know all these variables, you will need to know how much a bank or lender is prepared to lend you. The home loan that you would qualify for not only depends on your income, but also the following factors:
- how long you have been employed and your employment history
- what your income is made up from ie: base wage, overtime, benefits
- your credit history
- your other monthly commitments
- if you are self employed
Not all Mortgage Lenders treat the first home buyer the same. Some banks and non-bank Mortgage Lenders have special First Home Buyer home loans. These are traditionally low deposit home loans and may or may not require genuine savings.
If you are considering building in Perth refer to our section on New Home Builders and
First Home Owners Grant
If you are a first home buyer, you may qualify for government First Home Grant which offers first home buyers $7,000 toward the purchase of a new or established home.
Arranging your home loan in advance will let you know what property prices you can afford. It will also put you in a much better position to negotiate the price of your new home. We can arrange a home loan pre-approval letter which lets real estate agents know that you are a serious first home buyer.
Get off the rental treadmill
Why pay house or apartment rental when you could be paying off your own home.
With interest rates at an all time low and the current first home grants, now is a great time for the first home buyer to buy or build your first home.
Contact us today to out how you could buy your first home and escape rental properties forever.
What deposit do I need for my first home?
Most lenders require a deposit of around 20% of the purchase price without the need for
Lenders Mortgage Insurance. If you don't have this much deposit, most lenders will still be able assist but the loan will generally be subject to Lenders Mortgage Insurance. Mortgage Insurance protects the lender in case you default on your home loan and the property has to be sold at a loss.
The upfront premium is calculated on a sliding scale depending on the amount of deposit you have and the amount of your home loan. You will need to include the premium as part of your overall costs, however some lenders are willing to add the premium to the amount you borrow.
With Lenders Mortgage Insurance, you can buy a property with as little as 5% deposit. Some lenders will require this deposit to come from genuine savings, however some don't.
It is even possible to get no deposit home loans approved if you know someone who is willing to go guarantor on your behalf.
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