First Home Buyers Loans

The deposit needed for your first home typically ranges from 5% to 20% of the property’s purchase price. The exact amount will depend on factors such as your lender’s requirements, your financial situation, and whether you qualify for any government schemes or grants.

1. Standard deposit (20%):
   A 20% deposit is ideal, as it allows you to avoid paying Lender’s Mortgage Insurance (LMI). For example, if you’re buying a home for $600,000, a 20% deposit would be $120,000. This larger deposit can also give you access to lower interest rates and better loan terms.

2. Low deposit (as little as 5%):
   Some lenders accept deposits as low as 5%. For a $600,000 property, a 5% deposit would be $30,000. However, if your deposit is less than 20%, you will generally need to pay LMI, which increases the cost of your loan.

3. First Home Buyer Schemes:
   If you’re eligible, you may be able to take advantage of government schemes like the First Home Guarantee (previously known as the First Home Loan Deposit Scheme), which allows you to buy a home with a deposit as low as 5% without paying LMI. There are also various grants and concessions available depending on your location, which can help reduce the upfront costs.

Other upfront costs to budget for:
In addition to the deposit, you’ll need to account for other costs like stamp duty, conveyancing fees, building inspections, and potentially moving expenses. In some cases, first-time buyers can receive stamp duty exemptions or concessions, further reducing these costs.

At Rosh Partners, we can help you navigate the deposit requirements and first home buyer schemes, ensuring you’re on the right path to homeownership.

There are several government incentives available to help first home buyers get into the property market, including grants, schemes, and stamp duty concessions. These programs are designed to reduce upfront costs and make homeownership more accessible. The key incentives include:

1. First Home Owner Grant (FHOG):
   This is a one-off grant provided by state and territory governments for eligible first home buyers. The amount and eligibility criteria vary depending on your location, but it’s typically available for the purchase or construction of new homes. For example, in some states, you could receive up to $10,000 or more towards your first home.

2. First Home Guarantee (formerly First Home Loan Deposit Scheme):
   This federal government initiative allows eligible first home buyers to purchase a property with a deposit as low as 5%, without needing to pay Lender’s Mortgage Insurance (LMI). The government guarantees up to 15% of the loan, helping to reduce upfront costs.

3. First Home Super Saver Scheme (FHSSS):
   This scheme allows first home buyers to save for a deposit inside their superannuation account, taking advantage of the lower tax rates in super. You can withdraw up to $50,000 in voluntary contributions to use as a deposit, giving you a tax-effective way to boost your savings.

4. Stamp Duty Concessions or Exemptions:
   Many states and territories offer stamp duty concessions or full exemptions for first home buyers, especially for lower-priced properties or newly built homes. The threshold and benefits vary depending on where you're buying, but this can significantly reduce one of the major upfront costs of purchasing a home.

5. Home Guarantee for Single Parents (Family Home Guarantee):
   This program allows eligible single parents with dependents to buy a home with a deposit as low as 2%, with the government guaranteeing the remaining 18% of the deposit to avoid paying LMI.

Eligibility:
Eligibility for these schemes depends on factors such as your income, the property’s value, and whether you’re purchasing or building a new home. Additionally, these incentives are often capped, meaning they are only available to a certain number of applicants each year.

At Rosh Partners, we can help you determine which government incentives you qualify for and guide you through the application process to maximize your benefits as a first home buyer.

Getting your finance pre-approved before you make any decisions is always a very good idea. While not strictly required, getting a home loan pre-approval can be highly beneficial, especially in a competitive housing market. Here’s why:

1. Know Your Budget

• A pre-approval provides you with a clear understanding of how much you can borrow based on your financial situation. This helps you focus your property search within your price range, saving time and preventing disappointment.

2. Strengthen Your Position as a Buyer

• Pre-approval shows sellers and real estate agents that you're a serious buyer with financing already conditionally secured. This can make your offer more attractive and give you an edge over buyers who haven’t been pre-approved.

3. Avoid Surprises

• During the pre-approval process, your lender will assess your financials (income, savings, credit history) to give you an accurate borrowing estimate. This way, you can address any issues or discrepancies early on, reducing the chance of surprises later.

4. Faster Loan Approval

• Having pre-approval can speed up the loan approval process once you’ve found the right property. Since much of the groundwork is already done, the final approval can be quicker and smoother, which is especially helpful when dealing with tight settlement timelines.

5. No Obligation

• A pre-approval is typically valid for 3-6 months, and while it gives you a better idea of your borrowing power, you're not locked into a particular lender or loan until you proceed with a formal application. This gives you flexibility if your circumstances change.

When Might You Not Need Pre-Approval?

• In certain situations, such as if you're making an unconditional cash offer or if you’re a returning buyer with extensive equity, pre-approval may not be essential. However, even in these cases, knowing your borrowing capacity is still helpful.

Final Thoughts: While it’s not mandatory, getting pre-approval can provide peace of mind, clarity, and a competitive edge when buying a home. It’s a smart step in the home-buying process, especially if you’re serious about securing your next property. A mortgage broker can guide you through the pre-approval process and help you find the best loan options based on your needs.

A 100% offset account can be a valuable feature for reducing the interest you pay on your home loan while giving you easy access to your money. Here’s how it works and the key benefits:

A 100% offset account is a transaction account linked to your home loan. The balance in this account offsets your loan balance when calculating interest. For example, if you have a $400,000 home loan and $50,000 in your offset account, you’ll only pay interest on $350,000.

Advantages of a 100% offset account:

1. Interest savings:
   Every dollar in the offset account reduces the amount of interest you’re charged on your loan, helping you pay less over time. This can result in significant savings and help you pay off your loan faster.

2. Maintain liquidity:
   Unlike making extra repayments, which are harder to access, funds in the offset account are still available for you to use at any time. You can withdraw money from the offset account for emergencies, daily expenses, or other investments, giving you flexibility without affecting your loan structure.

3. Tax-free savings:
   Any interest you save through the offset account is effectively a tax-free benefit. Instead of earning taxable interest in a traditional savings account, you’re saving on home loan interest, which can be a more efficient way to manage your finances.

4. Faster loan payoff:
   By reducing the interest charged on your loan, more of your regular repayments go towards the loan principal. This can help you pay off your home loan sooner without needing to make higher repayments.

At Rosh Partners, we can help you set up a home loan with a 100% offset account and guide you on how to make the most of this feature to achieve your financial goals faster.

Helping your child buy their first home is a great way to support their financial future. There are several ways you can assist, depending on your financial situation and the level of involvement you're comfortable with. Here are some common options:

1. Guarantor Loan:
   One of the most popular ways parents help is by acting as a guarantor on their child’s home loan. As a guarantor, you use the equity in your own property to guarantee part or all of your child’s loan, which can help them avoid the need for a large deposit and Lender’s Mortgage Insurance (LMI). However, you are responsible for the loan if your child cannot meet repayments, so it's important to fully understand the risks involved.

2. Gifting a Deposit:
   You can also gift your child part or all of their deposit. Most lenders require a deposit of at least 5-20%, and a gift can help your child reach this amount more easily. Be aware that lenders may require a signed statement declaring that the money is a gift, not a loan. Some may also require the funds to have been in your child’s account for a certain period.

3. Providing a Loan:
   Another option is lending money directly to your child for their deposit. This can be a formal or informal loan arrangement, but if you want to avoid any tax implications or future misunderstandings, it’s recommended to document the loan terms in writing. Some lenders will factor this into your child’s borrowing capacity.

4. Shared Ownership:
   You may choose to buy a property with your child through shared ownership. This means you both own a percentage of the property, and both contribute to the loan repayments. Shared ownership can help your child enter the property market sooner, but it's important to have a clear agreement on how the property will be managed and how your shares will be handled in the future.

5. Co-borrowing:
   Co-borrowing involves applying for the loan jointly with your child. This increases their borrowing capacity, as your income and assets are considered in the loan application. However, as a co-borrower, you’ll be equally responsible for the loan repayments, so ensure you understand the long-term implications.

Things to consider:
Before deciding how to help your child, it’s important to consider your own financial position and the potential risks. If you're acting as a guarantor or co-borrower, you’ll be liable if your child can’t meet the loan repayments, which could put your assets at risk.

At Rosh Partners, we can help you explore these options and guide both you and your child through the home loan process, ensuring you choose the approach that best suits your circumstances.

Engaging solicitors, conveyancers, and pre-purchase inspection services early in the property buying process can help ensure a smooth transaction and protect you from potential pitfalls.

1. Solicitors or Conveyancers:
   You should engage a solicitor or conveyancer as soon as you begin seriously considering purchasing a property. They will assist with reviewing the contract of sale, conducting title searches, and handling the legal aspects of the transaction. Having them involved early allows them to flag any issues with the contract or property that could impact your decision or negotiation.

2. Pre-Purchase Inspections (Building and Pest):
   It’s a good idea to arrange pre-purchase inspections before signing the contract or during the cooling-off period (if applicable). A building and pest inspection will help you identify any structural issues, potential damage, or pest infestations. This information is crucial as it can affect the property's value or even your decision to proceed with the purchase. If any major issues are found, you may be able to negotiate repairs or a lower price with the seller.

Why timing is important:

• Avoid surprises: Early engagement of these professionals can help you avoid costly surprises down the track.

• Protect your interests: Solicitors and conveyancers ensure that your legal rights are protected, while inspections give you a clear understanding of the property's condition.

• Smooth the process: Having these services lined up early means fewer delays and a more straightforward path to settlement.

At Rosh Partners, we can connect you with trusted solicitors, conveyancers, and inspectors to ensure you have the right support throughout your property journey.