Finance on Tap

With

Terry “Tappa” Teece

Diploma of Finance and Mortgage Broking Management

Fraser Financial Services

WHAT DO I NEED TO GET INTO MY FIRST HOME?

 

So you think now is the time to make your first move into the real estate market, get off the rental roundabout and into your first home? Owning your home is part of the great Australian dream, and that dream can be a reality.

 

HOW MUCH DEPOSIT?

 

The ideal scenario is to have 20% or greater of the purchase price plus costs so you can avoid Lenders Mortgage Insurance (LMI). 20% deposit can be money saved or a non-repayable gift from someone (But this must be backed up with a Statutory Declaration from the person giving the gift).

 

The minimum deposit is 5%, but it will mean that you will have to pay LMI (Lenders Mortgage Insurance). This is anything up to two and a half percent of the loan amount, and some lenders will let you add this (Capitalise) this on top of your loan. Also with less than 20% deposit most lenders wish you to show “5% Genuine Savings”. What is that? You will need to show 3 months banks statements showing you have had 5% of the deposit in your account, or have saved that 5% deposit over a three month period. Some lenders will let you show your rental record as proof of “Genuine Savings”, or will take non-genuine savings. If you have “Non-Genuine Savings” the LMI premium will be a larger fee, and in some cases this can be added to the loan as well. BUT…..With a loan with non-genuine savings the interest rate will be slightly higher…..

 

 

GOVERNMENT FEES AND CHARGES

 

If you have owned a home before, there will be various Government Fees and Charges payable. These include Stamp Duty, Transfer of Land, Registration of Mortgage and Search of Title. On a $400,000 home in Queensland that you will be living in these charges would be just over $6,000. The Stamp Duty, Transfer of Land all vary depending on the price of the property being purchased, and it will be more if the property is for investment.

 

If you are a genuine First Home Buyer, you will be able to take advantage of the stamp duty exemption for first home buyers, and will only have the Transfer of Land, Registration of Mortgage, and Title Search to pay for as far as Government fees. If you or the person buying with you has owned real estate before as a home, you will not be eligible for the Stamp Duty Exemption (At present you can have owned an investment property and if you did not live in it you are eligible).

 

IS THERE STILL A FIRST HOME OWNERS GRANT?

 

Yes!!! But it is only for brand new homes or units that have never been lived in before, or if you build a home, or buy a new home direct from the builder, developer, or real estate agent.. The Queensland Government will give you $15,000 towards the construction or purchase of a brand new property, and also will also be eligible for the Stamp Duty Exemption….. This means a big shot in the arm if you do buy a new property!! Remember both yourself and your partner cannot have owned real estate before to be eligible.

 

THE WRAP

 

Well all in all there are many things for the home buyer to get their head around, and the best thing to do is get some information from someone who knows. Where is that? Right here at Fraser Financial Services – We know the rules, we know the lenders, and most of all we care for our customer from first interview to settlement. We have had 3 generations of customers here at Fraser Financial Services, and that does not just happen by chance. We are locals, live, work, and play in the local community.

 

So come see us here at Fraser Financial Services, we can look after all your finance needs; Whether it is for a car, truck, commercial equipment, home, investment or commercial property, we have all your options available and can do the hard work, so you can get on and do what you do best.

 

Think Finance, Think Fraser’s – It’s What We Do!!

 

Terry “Tappa” Teece

Fraser Financial Services

Mobile -0400 853 035

Phone – 07 55766 299

Fax – 0755766 012

Email – terry@ffsqld.com.au