First Home Buyers Guide

What is the minimum deposit required?

In some circumstances the deposit can be as low as 3% of the purchase price of the property.  There are various factors that need to be considered before we can advise what deposit you need in your own individual circumstances.

How much is the First Home Owners Grant  (FHOG) and can it be used as my deposit?

Generally the FHOG is $7000.00 if you are buying an established home.  To find out more visit the Office of State Revenue website for the state you are purchasing in.

In most circumstances yes you can use the FHOG towards your deposit. There may be circumstances that prevent you from using the FHOG as part of your deposit such as buying land and building a new home, the FHOG is not paid until the house is fully complete.  To find out more please contact us to discuss your circumstances. 

What is mortgage insurance?

Generally, this insurance is taken out by the lender when the amount borrowed is over 80% of the property value. This insurance covers the lender in the event that the borrower defaults on their loan and the sale of the property is unable to cover the outstanding debt. Mortgage insurance premiums are usually paid by the borrower. There is no protection for the borrower.

Am I eligible for a concession on my stamp duty?

Generally as a first home buyer you may be eligible for stamp duty concessions however the concession amounts and requirements vary from state to state in Australia.  To find out more visit the Office of State Revenue website for the state you are purchasing in.

Can my parents be guarantor?

Some banks offer this as an option to avoid the mortgage insurance.  However individual criteria of the borrow and the guarantor need to be satisfied for this to be an option.  To find out more please contact us to discuss your circumstances.