First Home Buyer Loan

What is a first home buyer loan?

Technically, first home buyer loans are often the same home loan product as offered to those who already have a home. However, some lenders may offer incentives, discounted rates or fees, and special deals to first home buyers in order to attract their business. Lenders may also have slightly different criteria for a first home buyer.

While there are many types of home loans in Australia, most lenders will generally categorise their home loans by the type of interest rate: fixed rate or variable rate.

Best mortgage lenders for first time home buyers

Finding the right lender for you will depend on your individual circumstances as well as the terms, rates, and criteria of each lender. This is where a mortgage broker can be a vital asset for first home buyers in the home buying process.

A mortgage broker, like our team at Oceania Finance, will analyse your financial situation before consulting with a range of lenders to find the choice most suited to your individual needs. This can take a lot of stress and pressure off first home buyers who are struggling to navigate their home loan journey.

Our friendly mortgage brokering team at Oceania Finance is committed to providing you with a personalised, stress-free service. And with access to a wide range of lenders, will find the right home loan for you. Contact us today to start your journey!

What first home buyers need to know

The home loan world can be confronting when you’re a first home buyer. But that’s why our mortgage team is here to help. We’re experts at what we do so you don’t have to be! We’ll take you through everything you need to know, including important information like the below.

First home buyers with bad credit
It is possible to obtain a home loan with bad credit history, but it can be difficult. Lenders in Australia are required to lend responsibly. This means that they will need to ensure you are reasonably able to afford any loan you may acquire.

While lenders will need to check your credit history when considering your home loan application, they will also look at:

• Your employment history
• Your income
• Your expenses, including spending habits
• The size of your deposit and the amount you need to borrow

Traditional lenders, such as banks and credit unions, may not consider applicants with a poor credit score. There are specialist lenders (also known as “non-conforming lenders”) who are more likely to offer “bad credit home loans” to those who struggle with a poor credit score. However, bad credit home loans can come with higher interest rates so it’s important to speak with your mortgage broker to determine if this is an appropriate solution for you.

If you’re looking for a home loan but concerned about your credit score, our mortgage brokers are here to help. No matter your circumstances, our team are experts at finding the best solution for you. Contact us today for more information.

First time home buyers and stamp duty

If you’re a first home buyer who is new to the process, you may not have heard of stamp duty.

Stamp duty is a government tax that is also known as transfer duty, property transfer duty, and land transfer duty. It is applied when purchasing a property or transferring the title of a property to someone else.

Stamp duty is paid by the buyer, typically some time after the settlement date. Every state and territory in Australia differs in regards to the cost of stamp duty and stamp duty laws. There are some stamp duty concessions available, but these depend on the state or territory and your individual circumstances.

There are free online stamp duty calculators that can help you estimate the cost of any stamp duty that may be applied in your situation. Alternatively, a mortgage broker, like our team at Oceania Finance, can take care of this for you. They can calculate how much stamp duty you are likely to pay, regardless of your state or territory, and can investigate if there are any stamp duty exemptions or concessions available.

First time home buyers and LMI

Home buyers who are struggling to save for a deposit may find they will need to pay lenders mortgage insurance (LMI). LMI is insurance that protects the lender in the event that a borrower defaults on their own. Typically, LMI is a once-off premium and is paid upfront upon settlement.

You may need to pay LMI if your deposit is less than 20% of the property’s value–meaning you are needing to borrow more than 80% of the property’s value.

Your mortgage broker can work with you to determine if you will be charged LMI and if there is a way to avoid it.

First home buyers schemes and grants

For first home buyers struggling to break into the property market, there are some government assistance schemes and grants available that can help. Some of these assistance programs are state-based, while others are available nationally.

A mortgage broker, like our team of experts, can determine if you are eligible for any first home buyer grants or schemes when applying for your home loan.

Contact our experts today to check your eligibility for any first home buyers grants or schemes.

Questions to ask mortgage broker for a first-time home buyer

Although your mortgage broker should help guide you through the home loan process, it can be helpful to have a list of questions ready to go. This will ensure you get the information you need and ensure you and your mortgage broker will work well together.

• How many lenders do you work with?
• Are there lenders you do not have access to? Which lenders?
• How do you get paid? Does this change with each lender?

Once your mortgage broker presents you with home loan options, ensure you ask:

• How is this loan in my best interest?
• What is the interest rate and the comparison rate? How much will the loan cost me long term?
• What features are included in the loan? How do they work?
• Are there other options and can you compare them with your suggestion?

Oceania Finance – Mortgage experts you can trust

If you’re feeling overwhelmed with the home loan process and not sure of the next step, our team of mortgage experts are here to help. We’re committed to providing you with a personalised experience that takes the stress and unknowns out of buying your first home. With access to a wide range of lenders and a comprehensive approach, you’ll know you’re in good hands.

Chat to our experts today.