First Home Buyers | Profectus Lending

Want to buy your first home?

From when you first start your property search online, the sheer mass of information can be completely daunting. The desire to following in your parents and grandparents footsteps in the Great Australian Dream is something to behold, but in today's environment the steps to reach that property is enormous, and that's where we come in.

Here at Profectus Lending we dedicated ourselves as the First Home Buyer experts and making the process are seamless as possible. Read our Tricks & Tips snippet below and book an obligation free consultation with us to start your journey to achieving that Great Australian Dream.

Tips & Tricks

1 Free money is easy money

If you do your initial research you will find ways on how much of a deposit you really need to save. First and foremost as a first home buyer you're entitled to the stamp duty concession which means if you keep the purchase price of your new property under $500,000 you're entitled to ZERO stamp duty on the property. Stamp duty can be one hefty fee which can climb to over $8,000 for properties over that threshold.

So this is definitely something to take into consideration when approaching the almighty question of how much do we want to buy for...?

2 Wait, more free money?!

Yes, exactly right more free money! this is only possible for those who are looking to get one of those brand spanking new properties/builds. Wait for it, the government will grant you an additional $15,000 towards your initial deposit. For some this could be the difference in making it to that daunting 20% deposit mark. So have a think about this option when considering where you'd like to live because the thought of a new build can be quite enticing.

3 The Ugly Truth

Don't let the title deter you, as this will sort out the dreamers from the realists as you need to determine how much you can borrow. There's no better person to tell you this than one of our expert brokers. They won't have just one calculator from one lender to use, they have servicing calculators from over 30+ different lenders to determine your optimal borrowing power. Some lenders will be more conservative than others, which means for you going to a broker will only benefit your chances of getting the pre-approval you desire.

4 Why do I need such a big deposit?!

The big question when looking to buy your first home is how much of a deposit do I need to save. This monumentous task is all thanks to a little birdie called "Mortgage Insurance". If you're unfamiliar with this, to a lender when you putting up an initial deposit less than 20% to a lender this may seem a bit risky in their eyes so they have an mortgage insurer body (LMI) above them who are prepared to insurer the lender in case for some reason you're unable to pay you home loan. The catch is you need to pay a once-off fee for the backing of the mortgage insurer. This isn't a set fee, it's based on how much of a deposit you're able to inject. The lower the deposit the higher the LMI fee is.