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Securing the best mortgage deal for The First Home Buyer
Arranging Mortgages for the First Home Buyer
If you're entering into a mortgage for the first time you're probably feeling quite daunted, stressed and full of anxiety about what's in store for you. At Perigee Finance our job is to take all the stress out of the process for you. We help you to secure the best possible mortgage tailored to meet your particular needs. We organise everything for you in the shortest possible timeframe and make the whole process easy for you. Perigee Finance will organise the best loan structure for you and will make sure that you are not getting in over your head in debt.
- How much can I borrow?
- How much deposit do I need?
- Which loan is best for me?
- What are the differences between loan types?
- What other costs are there that I need to know about?
How much can I borrow?
Borrowing criteria depends on many factors such as income, credit history, savings and the value of the home you want to buy.
Perigee Finance makes it easy and can work out the details with you at our office, in person or over the phone by completing a pre-approval assessment. This assists us in determining the maximum amount you can borrow - it also gives us an idea of the type of lender you may be suited to. However - we stress that some online calculators spit out loan amounts that people just should not be able to afford, in fact we have had times when clients have placed an offer on a property - on the basis of completing an on-line assessment, only to find out that they could not borrow that amount at all.
Things such as employment history, credit history, savings,
stability of residential address all can come into the assessment by a
lender. At Perigee Finance - we make sure you are put in the best
possible position to get a great loan approved, and guide you along the
way! On this basis - we would prefer to have a 6 minute discussion with
you over the phone - and then quite quickly using our experience and
software we can determine the next step for you to take to get into
your dream home!
Depending on your situation - you can borrow up to 100% of the
property value with various lenders - however there are some big
factors to consider like mortgage insurance costs (which can vary by
thousands between lenders!) - so you need to ring us to chat and get it
RIGHT!
Call now on 07 3889 9719 or email us on info@perigeefinance.com.au
How much deposit do I need?
For most home loans, 5%-20% of the property value is a good amount to aim for.
Most people have a minimum of 5% deposit, but it is possible to borrow up to 100% of the property value in certain circumstances. (BUT - you will still need money for legal bills, Pest and Building Inspection, Insurance and other administration costs etc). Borrowing the full amount now will mean a greater amount to pay back, but it will get you into your own home sooner.
If your deposit is less than 20% you may be required to pay Lender's
Mortgage Insurance. (This is insurance for the lender to protect itself
from default by the borrower - you!) However, there are ways to avoid
Lender's Mortgage Insurance - and at Perigee Finance we know the best
ways to ensure your costs are minimized
If you're eligible for the First Home Owner Grant (FHOG) you can put that towards your home loan. The First Home Owner Grant is a one-off $7000 grant that the QLD State Government pays towards the purchase or construction of a home by a first time buyer At Perigee Finance we can organise the First Home Owner Grant for you - so it is available at settlement.
Which loan is best for me?
There are many different types of home loans on the market, and
without specialist help, you'll find it confusing working out which one
is right for you.
At Perigee - we know all the relevant products and we discuss fully
with you how you currently operate your banking arrangements - then
dovetail that with how a loan would best suit your personal situation.
And we'll talk to you in language you can understand throughout the
process. We welcome all your questions and we'll give you answers you
can understand.
It can be just scary sometimes working through all the different
types of products - their ongoing fees, exit fees, intro rates, fixed
rates - that is why at Perigee we listen and work with you to locate
the best loan that suits your income and lifestyle.
For example - someone on commission only may prefer to have an
offset account to take advantage of lump sums of income coming in - or,
you might be on a fixed wage - and would like protection that you know
exactly how much you will pay for the next 3 years - well then a fixed
rate would suit you better.....
Introductory Rate Loans, Basic Variable Rate Loans and Fixed Rate Loans are the most popular loan types with First Home Buyers.
Different loan types
There are thousands of different home loans on the market, all with different features, benefits and costs. At Perigee Finance, your adviser will explain which loan type could suit your needs, as well as the different requirements of the various lenders. Here's a snapshot of the different loans that are available:
Standard variable rate
Standard Variable Rate loans typically offer you maximum flexibility
and great features, including the option to fix or split your loan,
make additional repayments when you can afford to, and redraw when you
need to.
Basic variable rate
Basic Variable Rate loans offer a lower interest rate, but fewer
features. However, you usually have the option to pay for additional
flexibility and features when you need them.
Fixed rate
Fixed Rate loans protect you against interest rate increases for an
agreed time, so you have the peace of mind of knowing what your
repayments will be. However, with a fixed rate loan you won't benefit
if rates go down during the fixed term.
Combination or split rate
Combination or Split Rate loans allow you to fix part of your loan
for protection from rate rises, while the rest of your loan benefits
from the flexibility of a variable rate.
Non-Conforming and Low-Doc
The less stringent documentation requirements of Non-conforming and
Low Doc Loans make them a great option for borrowers who are
self-employed, have minimal deposit or savings history, or an impaired
credit history. This has seen many changes over recent time, so it's important to have someone who knows the up to the minute policies and parameters with all the lenders.
Home Equity
Home Equity Loans allow you to unlock the equity in your existing
property for other opportunities such as renovating your home,
investing in shares or managed funds, or financing an investment
property.
Line of Credit
Line of Credit loans are Interest Only variable rate loans that use
the equity in your home and let you access funds when you need them
through a transaction account.
All-in-one
All-In-One Loans feature an everyday transaction account linked to
your home loan, usually in an interest offset arrangement. The higher
the balance in your transaction account, the less interest you have to
pay on your loan.
Introductory Rate Loans
Also known as "Honeymoon Rates", these loans offer you a special
discounted loan for a specified period at the beginning of the loan.
Need to be careful however, as the rate it reverts to may be higher and
can make the "true" cost of the loan more expensive over time.
What other costs are there?
Remember, it's not just the deposit you need to have, you'll need to
allow for the various administration costs incurred when buying a home.
You may have to pay stamp duty as well as various fees and insurance.
Here's a guide to the types of professional services and costs you
may need to cover. Costs will vary depending on your choice of firm and
the state in which you live, so it's a good idea to make some enquiries
before you get started.
Solicitor and conveyancing fees
You will need a professional to help you through the legalities of
the sale. A conveyancer specializes in the transfer of property, while
a solicitor has a broader knowledge of the law. Both are capable of
guiding you through the buying process.
Settlement and disbursement fees
These cover the costs your solicitor/conveyancer makes on your
behalf such as phone calls, the filing of forms, stamp duty and
registration costs, etc.
Building and Pest report
You should get your house professionally checked for structural
damage and pests before deciding to buy. You can then decide whether
you are prepared to deal with the problems, or you could use the
information to negotiate a better price.
At Perigee Finance we can help you to determine all of the other costs that are involved and calculate this in how much you need to borrow, so that there are no hidden shocks....
