Have you made the decision to buy your First Home and require a First Home Loan?
Here at The Finance Alliance, we take a First Home Loan very serious.
First Home Loan
Buying your First Home can be a very exciting decision and it is a moment in life you will likely never forget.
But it can also be nerve wrecking. There is so much coming at you at the same time, that it is no surprise that a lot of first home buyers are experiencing information overload.
Information overload can lead to mistakes with potentially big consequences.
Frequent First Home Loan Questions
- How do you know how much you can buy your First Home for?
- Are there government incentives for me as First Home Buyer and if so, how do I apply?
- Will I be able to sustain my lifestyle when I borrow close to the maximum?
- What loan product is best suited for a First Home Buyer, there is some much to choose from?
I am aware that banks prefer me to come up with a 20% deposit plus costs. What are my options when I don’t have a 20% deposit?
- My bank tells me I can only afford to borrow X amount for my First Home Loan. However, I feel I can quite comfortably afford more. What are my options?
That First Home Loan Moment..
If you make the wrong decisions here, your journey of becoming a First Home Owner will therefore indeed become that moment in life you were never going to forget, but for the wrong reasons.
First Home Loan – The Rescue
This is where we come in.
We really appreciate the importance of this big step in your life and because of that, we’ll take you by the hand and guide you through the maze of information and decisions. From our very first chat all the way down to our post-settlement Charity Offer, we are there for you.
Ready to start on your First Home Loan?
Reach out, we’d love to be part of your journey.
First Home Buyer – Government Incentives
The Victorian Government currently provides a number of incentives to assist the First Home Buyer.
HomeBuilder Grant
The HomeBuilder Grant is a tax free lump sum of $25,000, which the Federal Government provides to eligible owner-occupiers, including First Home Buyers.
The grant can be used for:
- The construction of a new home, or
- The renovation of an existing home
FHOG
When you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are and the home you are buying is in regional Victoria, you will receive $20,000. But, if the home is metropolitan, the grant is $10,000.
In addition to the location and value of your First Home it must be less than five years old and never have been lived in and/or sold to be eligible for the FHOG.
First Home Buyer – Stamp Duty
For First Home Buyers (Owners) there is a big tax incentive for homes valued up to $600,000, because Stamp Duty in that case will be fully waived.
A First Home with a dutiable value from $600,001 to $750,000 attracts a concession on a sliding scale. Because, the higher the dutiable value within that range, the lower the concession and therefore, the more stamp duty you pay.
First Home Loan Deposit Scheme
The Government is providing assistance to prospective First Home Buyers (Owners) who have saved a 5% deposit and they do this by forking up 15% of the purchase price to ensure the First Home Buyer is able to move into their home with only a 5% deposit.
The First Home Loan Jackpot
For a Prospective First Home Buyer (Owner), buying a new property with a dutiable value of $600,000 would result in a Jackpot Combination of incentives:
– No Stamp Duty is payable
– You only need a 5% deposit and pay no Lenders Mortgage Insurance
– The First Home Owners Grant provides for a cash deposit on or after settlement of $10,000 in the Melbourne area.
– A $25,000 tax free HomeBuilders Grant towards construction
Note: Regional areas in Victoria have a lower dutiable value maximum, but with a $20,000 First Home Owners Grant.
