By doing a little homework you may gather some idea of how much you can borrow and the terminology of some products on offer. It will also prepare you for questions you will be asking your broker when you meet. Remember, there is no such thing as a silly question when it comes to finance!
How much can I borrow?
Your mortgage broker can assist you to work out how much you can and want to borrow but you should do some initial budgeting. Don’t forget to factor in those additional costs that you will be paying including solicitors fees, moving costs, service connection fees and insurance.
Use calculators to get an approximate idea of what you can afford.
- The estimates you obtain through online calculators may vary from the actual amounts, depending on numerous factors, so only use them as a guide.
- The most important factors in considering the amount you can lend will be your income, deposit, other financial commitments, interest rate and value of the property being purchased.
- Take into account current income and commitments, perceived needs in the foreseeable future, and changes in your family situation that could affect ability to service proposed borrowing such as maternity leave.
Am I eligible for any Grant’s?
The Australian Government’s First Home Owner Grant (FHOG) was introduced in July, 2000, by the Federal Government and involves a tax-free grant of $7,000 to first home buyers. All state and territory governments provide the grant through their respective revenue offices.
The FHOG is available to people buying or building their first home. Some of the criteria in getting the Grant are as follows:
- You are a permanent resident or Australian citizen
- You must be at least 18 years of age
- You have the intention to occupy the home as your principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home
Your mortgage broker will be able to go through the further details with you and assist you with your eligibility for the FHOG.
For further information, visit First Home Owners Grant online.
Researching the market
Research and learn more about home loan terminology, costs and features of loan products in the marketplace to boost your knowledge.