• Angelique

First Home Buyers - This one is for you!

Looking to buy your first home? Then this is for you!

When you are looking to purchase your first home, it can be an overwhelming time.

Do I need a 20% deposit? Am I eligible for the first home buyers grant?

We love working with First Home Buyers, not only because it is such an exciting time, but also to be able to answer all of your questions and take some of that stress away!

Below are some common questions we get asked and also some further information around what First Home Buyers may have access to.

  • Do I need a 20% deposit?

The short answer is no. You can purchase your first home with as little as a 5% deposit! This will allow you to get into your first home sooner than you may have anticipated.

However, each person has a different financial situation and goals they want to achieve.

It is important to speak with your broker about this and what your plans are so we can then ensure you are getting the best solution for your situation.

  • Am I eligible for the First Home Buyers Grant?

The first home buyers grant (in Victoria) is a $10,000 government grant that first home buyers may have access too.

You will be eligible for this is you purchase a brand new home that has not been lived in, or are building your first home. This grant is not available for established homes.

Each state has their own criteria and grant amount. If you are from another state, don't worry, we will still be able to advise you on this. We work with clients all across Australia and are familiar with the other states regulations.

  • What is a guarantor?

If you have a parent that wants to use their property as security for your fist home purchase, they can become a guarantor.

This means that they will use the equity in their home to secure your loan. By doing so, we can potentially avoid Lenders Mortgage Insurance (LMI). LMI applies when you are borrowing over 80% of the value of the property you are purchasing. By using a guarantors security, this may see your borrowing percentage lowered, bringing it under 80%, avoiding LMI.

This may also reduce your need for a larger deposit, in some instances no deposit is possible.

It is important your speak with your broker around this also, as we will need to ensure this is a suitable option for all parties included.

  • What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase a home sooner.

Under the Scheme, part of an eligible first home buyer’s home loan from a participating lender will be guaranteed by the government. This is aimed at enabling first home buyers to purchase a home with a deposit of as little as 5 per cent. This means that the first home buyer will avoid paying LMI. This could potentially save you up to $10,000.

There are limited spaces available, however, the good news is there is still spots open!

If you want to find out more about this Scheme, please contact us today and we will be happy to help and see if you are eligible!

  • Stamp Duty

As a first home buyer, you may be eligible for a stamp duty reduction or exemption.

Stamp duty is a tax levied by state or territory governments on certain purchases, including buying a home, land or investment property.

For First home buyer purchasing a property in Victoria, you may be eligible to be exempt from paying stamp duty on your purchase. This could save you up to $30,000! This is a fantastic initiative and paired with the First Home Loan Deposit Scheme could mean you only have to have a 5% deposit!

There are some criteria around the stamp duty exemption or reductions, so it is important to speak to your broker to find out what the criteria is and how you can make the most of this!

At Zimlend, we have a large focus around education. We will look at your individual circumstances and advise you on what you may/may not be eligible for. We want to work with you to to get you into the best position possible to buy your first home.

We will walk by you every step of the way and take the stress away by always being there to answer any questions you may have.

So if you're thinking you may want to start getting prepared to purchase your first home, get in contact with us today so we can start your journey together, one step at a time!

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