The painless guide to purchasing your first home.

Being a first home buyer can be an overwhelming experience without expert advice to help guide you along the way. At Propel Finance we strive to ensure gaining finance is a smooth and streamlined process. Contact us today so we can assist you with any first home buyer queries.

In the meantime, take a look through our first home buyer info below.

• Which home loan is right for me?

  With so many different loan products on the market, finding a home loan is not as simple as it used to be. There is a range of options available to you that may save you money and provide you with greater flexibility and peace of mind.

  Propel Finance consultants use their expertise and experience in the home loan market coupled with a unique computer software program that enables them to compare hundreds of loans in a matter of minutes. Our consultants will then be able to provide you with a short list of loans that are both competitive and suitable – simplifying the loan selection process.
  

• First Home Owner Grant (FHOG)

  The Federal Government introduced the FHOG in 2000 to assist first home buyers with the costs of purchasing their first home. It was implemented at the same time as the GST was introduced and was also aimed at offsetting the effect this tax could have towards first home buyers.

  When introduced it was a non means tested grant of $7,000. In recent times we have witnessed changes to the scheme which has seen the initial grant boosted as high as $21,000.

  The FHOG is a national scheme which is administered by each state and territory. As such, there may be different incentives offered in each area such as reductions in stamp duty or other concessions.


  We can help you to access the first home owner benefits you may be entitled to and can discuss your eligibility to these funds. Please call us today to discuss your situation.
  

• How much can I borrow?
  How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income, and what expense commitments you have. Your borrowing capacity will also vary from lender to lender.
  
• Am I eligible for the first home owner grant?
  The first home owners grant is a one-off grant available to first home buyers intending to live in the home they are buying. You are eligible if you are an Australian citizen or a permanent resident who is buying or building your first home in Australia and intend to occupy it as your principal place of residence within 12 months of settlement.

  Note that if you are purchasing the property in conjunction with other people, they must also meet the same criteria for the grant to be available.
  

• What will my repayments be?
  It is one thing to work out how much you can borrow, but you need to know if you can afford the repayments. Let our team of mortgage brokers assist you in finding out what loan amount you can afford.
  
• How much do I need to save for a deposit?
  The amount you need as a deposit will depend on the type of home loan and the lender you select. Generally, you will require a minimum deposit of 5% of the property value.
  
• How much do I need to set aside for stamp duty?

  Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory the property is situated in.
  

• What other expenses will I need to pay besides mortgage & stamp duty?
  As a rough guide, you should budget for between 5-7% of the purchase price. This is in addition to your deposit to help cover fees and charges. While mortgage and stamp duty will make up the bulk of this 5-7%, the balance may include:

  • Building and pest reports
  • Valuation fees
  • Lenders mortgage insurance (LMI)
  • Solicitors fees
  • Insurances
  • Utility connection fees – phone/gas/electricity
  • Council and water rates
  • Removal costs
  

• How do I choose which home is best for me?
  When deciding on the area to live in, apart from considering proximity to family, friends and work commitments, you will obviously need to think about price. Price will vary greatly from suburb to suburb. This will come back to how much you can borrow and afford.
  
• What should I do now?
  You can make an appointment with a Propel Finance consultant by calling us on 1300 111 800. Or request a quote and we will be in touch shortly.