First Home Buyer - FAQ
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First Home Buyer FAQ
 

Q1. What is the minimum deposit I need to have to qualify for my first home loan?

You will need at least 5% deposit saved up over at least 6 months. Lenders like to see evidence of saving history and will request copies of your bank statements to demonstrate that you have the discipline and capacity to save.

Q2. How long do I need to have been working for before I can get a home loan?

Different lenders requirements may vary, but typically you need to have been employed for a minimum of 6 months before you can obtain a home loan. This is to ensure that there is some stability for the borrower. You do not want to find yourself out of a job and with a large mortgage.

Q3. How do I know if I am entitled to the FHOG?

In general terms, you are entitled to the grant if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying it as your principle place of residence within 12 months of the settlement and living in it continuously for at least 6 months.

It is important to note that if you are buying the property with your spouse or a partner, they must also meet the first home criteria for the grant to be applicable. Also despite the fact that both of you will be buying your first home – only one grant will be paid.

Q4. Other than the deposit, what other costs will I need to cover with my purchase?

There are a number of other costs that you will need to have own funds to cover when buying your first home .

Some of these are as follows:

Building/pest inspection if buying an existing property
Loan application and settlement fees (may apply)
Valuation fees
Lenders Mortgage Insurance (LMI) If borrowing more than 80%. Most lenders will allow you to capitalise this expense into your loan.
Solicitor/conveyancer fees
Stamp duty on purchase (you may qualify for a discount for off-the-plan purchases)
Property insurance