When purchasing your first property, you will usually need 5% genuine savings in your account for 3 months to qualify for a home loan. However, if you can show rent paid to a real estate agent for a minimum of 3 months, this can be considered as genuine savings by some lenders.
You can usually borrow up to 95% (sometimes even up to 99%) of the value of the property including Lenders Mortgage Insurance and some states have waived Stamp Duty for First Home Buyers so there are considerable savings to be made to help you get across the line for your first loan.
- No cash is required
- The guarantee is limited to a certain amount and this can particularly help to remove the cost of Lenders Mortgage Insurance (which really is insurance only for the bank giving you the loan)
- The guarantee can be released when a certain loan to value ratio is achieved
- Applicants will still be assessed on servicing the full amount (including the component which is guaranteed)
- Parents assets & liabilities will also need to be assessed
- Please call us on 1300 881 220 to discuss your individual circumstances
Many of us think “Budget” is a dirty word but it is seriously one of the best things you can do if you want to find out where your money goes, especially when you are trying to SAVE for a deposit!
Here is a good real example of an excel based budget* one of our young clients has been using and he has saved $20,000 and is nearly ready to buy his first home! That’s all it takes!
*The information provided by the calculator is intended to provide illustrative examples based on the stated assumptions of your input. Result is a guide and does not constitute financial advice or a guarantee of an outcome. You should always discuss your individual circumstances with a representative of The Property Education Company.
We just had our tax returns done and wow what a difference having properties makes! For the first time ever we have a decent return of $13,000 between the 2 of us which we will put towards building our deck and pergola. You are a super broker and a truly great person. Give yourself a big pat on the back.
Leonie & Steve