Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find thebest home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
Are you a first time home buyer looking for affordable finance? Government, online and community lenders can be a great option to help you finance your first time buyer mortgage. If you’re looking for a first home buyer scheme to buy a property, build on vacant land or refinance a property, our experienced brokers can help you find a loan that suits you. Apply for a first buyer’s home loan with our brokers today to ensure a seamless loan approval.
What Are Home Loans For First Time Buyers
Who Can Use First Buyers Home Loan Scheme In Melbourne?
To Be Owner-Occupiers
First Home Buyers
Borrowers must be first home buyers who have not previously owned or expressed interest in a property in Australia. This includes doing so on separate and joint occasions with someone else such as in residential strata or company titles.
First home loans are only eligible for owner-occupied residential properties, not investment properties. They must also fall within the participating lender’s criteria. A first time buyer mortgage can be used for either the purchase or construction of a modest home. The value of the residential property must not exceed the relevant price cap of the local area where it’s located.
How To Apply First Time Home Buyer Loan?
Check Your Eligibility
Submit Your Application
Buy Your Home
What Documents You Have To Submit
- Proof of income: Lenders will want to see proof that you have a steady income in order to make sure you can make your loan payments.
- Employment history: Lenders will want to see proof that you have a steady job and income. They may also want to see your employment history to determine how long you’ve been employed and if you’re likely to keep your job.
- Other debts and credit history: Lenders will want to know about any other debts you have, such as credit cards, student loans , or car loans . This information helps them determine how much debt you can handle and whether you’re likely to default on your loan.
- Asset statements: Lenders will also want to know about any other assets you have, such as savings accounts, stocks, or bonds.
- Tax return notice of assessment: You need to process your tax return. When the Australian Taxation Office sends you a statement called a Notice of Assessment, you need to submit this document. Participating lenders will review your Notice of Assessment for the relevant financial year to issue a scheme place pre-approval.
About First Home Buyer Loan
Earning a steady income: Finance lenders require that you have a source of income to make your loan payments. Lenders will typically look at your employment history and current income to determine whether you can afford to make your loan payments.
Clear asset information: Lenders require that you have some assets, such as a down payment, to qualify for the loan. They will look at your savings and investment accounts to determine whether you have the assets to qualify for a home loan.
How To Get No Deposit Loan For First Home Buyer?
Additionally, most borrowers who get no deposit loans are first home buyers who plan to live in the homes they purchase. Most lenders prefer these types of buyers as they are at lower risk and are more likely to pay their loans on time. To get a no deposit first home buyer loan approved, you will need the support of a creditworthy guarantor.
How To Get Home Loan First Time Buyer With Bad Credit?
Alternatively, you can also wait before applying for a loan and spend some time improving your credit score to get better terms and rates. These are some tips to secure the best rates on your home loan:
- Improve your credit score: Lenders will use your credit score to determine whether or not you’re a good candidate for a loan. If you have a good credit score, you’re more likely to get approved for a loan with a lower interest rate.
- Sign a loan with a cosigner or guarantor: If you don’t have a good credit score or a large down payment, you may need to get a cosigner for your loan. A cosigner is someone who agrees to be responsible for your loan if you can’t make your payments.
- Put down a larger deposit: A larger deposit will help assure lenders of your ability to repay the loan.
- Use collateral as loan security: Putting down an asset to borrow against the loan will minimize risk to lenders. They will be more likely to offer lenient loan repayment terms and interest rates. Although, remember that if you default on your loan, the lender has the right to sell your asset.
Choosing The Best First Home Buyer Loans
However, with the first home loan deposit scheme, you need to have saved at least 5% of the eligible property’s value as a deposit and less than 20%. If you exceed this limit, the loan will not be covered by the scheme.
A home loan will usually incur fees be it upfront or monthly fees. These can be your establishment fees, ongoing account administration fees, penalty fees and other charges associated with the cost of borrowing or accessing certain loan features like redraft facilities.
How Much Can You Borrow?
Lenders consider your borrowing power when you apply for a home loan. This is determined by factors such as your income and expenses, how much you have saved as a deposit and any debts you have.
Have Any Questions?
Frequently Asked Questions
How To Apply First Time Buyer Mortgage?
You will need to provide payslips, bank statements and asset information to verify your income and savings. Lenders will review any liabilities and debts you have including HECS and HELP balances, and credit cards and buy now, and pay later debts. You should provide your complete and honest financial information so they can get a clear picture of your budget and determine a suitable loan amount you can afford.
What Is The Best Home Loan For First Home Buyers?
How Does The First Home Loan Deposit Scheme Work?
- Existing houses, townhouses or apartments
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse
Eligible first home buyers can apply for a loan to purchase an eligible property through a participating lender. Eligible applicants can use the scheme in combination with other government incentives such as the first home super saver, home builder grant or other state and territory first home owner grants and stamp duty concessions.
Loans within the scheme must follow scheduled repayments of the principal and interest of the loan for the full period of the loan agreement. There may be limited exceptions on interest-only loans for construction lending.