First Home Buyers

First Home Buyers

Nothing beats the excitement of owning your own home. It’s certainly so much better than renting out and paying off someone else’s mortgage. Sure, buying a home may require you to have some savings and good credit history, however, the benefits that come from being a homeowner make it a worthy investment. 

Benefits Of Buying Your Own Home V/S Renting

As a renter, you have little or no control over the length of your lease or any changes you’d like to make to the property. You need to be prepared for regular house inspections by the real estate agents and increasing rent every year. All of this changes when you buy your own home. As a homeowner, you have full control over every aspect of the property, from adding little touches to making major changes to personalize the property to your taste and making it ‘YOUR HOME’. 

Another downside of renting is that the rent you pay goes towards paying off your landlord’s home loans. No matter how long you stay in a rental home, it will never really be yours. That’s where the real difference lies between renting and property ownership. When you buy a home, your monthly repayments go towards reducing your total mortgage, building equity in an asset that you own, and that’s likely to increase in value. 

Ready To Buy Your Own Home? 

Buying your first home can be as challenging as it is exciting. There are so many different things to think about, the first of which is your budget or borrowing capacity.  

The one obstacle that stands in the way of many first home buyers is the initial deposit and ongoing costs. Buying a property requires you to pay much more than just the initial deposit. There are several other upfront and ongoing costs. These may include stamp duty, Lenders Mortgage Insurance (LMI), conveyancing fees, building inspection fees, moving and removalist costs, house insurance and council rates. Not everyone can afford to pay this large upfront amount from their personal savings. 

Fortunately, you don’t have to all that on your own. There are a number of financial grants available for first home buyers that can help increase your home buying budget. 

First Home Owner Grants (FHOG)

First home buyers who are buying or building a new home may be eligible for a number of state and federal funding schemes. One such scheme is the First Home Owner Grant (FHOG). A $10,000 FHOG is available when you buy or build your first new home. This scheme may be different in each state.

For more info: FHOG

First Home Loan Deposit scheme (FHLDS)

The First Home Loan Deposit Scheme is a Federal Government initiative that aims to shorten the time first home buyers have to save a deposit to buy a home. Usually, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance (LMI). This Scheme gives first home buyers the opportunity to purchase a home with a 5% deposit and avoid paying LMI. Under this Scheme, the Federal Government acts as a guarantor for up to 15% of your home loan, meaning you won't have to pay the LMI.

For more info: FHLDS

First Home Buyer Assistance Scheme (FHBAS)

If you’re a first home buyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS). You may be eligible for a full or concessional stamp duty exemption, depending on the value of the house.

For more info: FHBAS

First Home Super Saving Scheme (FHSS)

The First Home Super Saver (FHSS) scheme lets first home buyers save a deposit through their superannuation. The main advantage of the scheme makes it faster to save due to the concessional (before tax) treatment of super. You can apply to have up to $15,000 of voluntary super contributions released from any one financial year to buy your first home.

You may qualify for the above grants and schemes if you are an Australian citizen or permanent resident aged 18 years or over and have never previously owned your own home in Australia or previously received a first home owner grant. 

While this can be a great help, you may still need to explore other financial aid avenues to afford the upfront cost. 

How SJ Mortgage Solutions Can Help

At SJ Mortgage Solutions, we are committed to helping first home buyers realize their dreams. 

Exploring home loans in search of the best mortgage rates is not easy, especially without help. SJ Mortgage Solutions works with you all the way, from researching low rate home loans to simplifying the application process. Our home loan calculator will help you calculate monthly payments and interest rates on different loan amounts, giving you a better idea of how much you can afford to borrow.

As Australia’s leading home loan experts, we have access to several reliable lenders that we can negotiate with to ensure that you get a mortgage that best matches your needs.