Buying your first home is an exciting step, but one that comes with many questions and decisions.
At Affinitas Finance, we’ll work with you at every step to help you understand how much you can borrow, what your repayments and costs will be, what access you have to first homeowners grants, and how to navigate the process towards a successful settlement.
Whether you’re looking for a convenient city pad, a family home, or an investment property we’ll help you unpack how your first house can form the cornerstone of your long term financial goals. The right strategy, structure, and finance will help you make it all happen.
We have access to a wide range of lenders and their full suite of loan products. We also have the expertise to help you understand all of your options — from payment frequencies, early payouts, and easy redraw facilities to offset accounts and how to make your loan work best for you.
We help alleviate the stress of taking on a mortgage by dealing with the lender for you. We keep everyone informed along the way and explain the fine print, rates, and terms to make sure everything is crystal clear.
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First Homebuyer FAQ’s
How much money can I borrow?
We’re all unique when it comes to our finances and borrowing needs. Lenders assess different types of income and commitments differently. Contact us today, we’ll help you with reliable calculations based on your circumstances.
How do I choose a loan that’s right for me?
Our guides to loan types and features will help you learn about the main options available. We’ll sit down with you and understand your goals and plans, come up with a strategy and work back to the right loan options from there. There are hundreds of different home loans available, so let us help you cut through all the noise to find one that’s right for you.
How much do I need for a deposit?
The deposit you pay on signing a contract is different to the total deposit or contribution you’ll make towards your purchase. On signing a contract, you can often negotiate to put down a few thousand dollars initially when you sign a contract, with a further payment to take you up to around 3% of the purchase price once finance is approved. This needs to be based on how much cash you have available to you, but as with all the other details, we’ll help you work out what will suit you.
Your overall contribution to a purchase is usually anything from 5% to 10% of the purchase price plus costs.
How much will regular repayments be?
Go to our Repayment Calcuator for an estimate. Because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll work with you to find a loan set-up that’s right for you.
How often do I make home loan repayments — weekly, fortnightly or monthly?
Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
What is the First Home Owners’ Grant?
This is a grant available to Australian citizens or permanent residents who wish to buy or build their first home which will be their principal place of residence within 12 months of settlement. Contact us directly to find out more about eligibility requirements in your state and how much grant money you could receive.
What fees/costs should I budget for?
There are a number of fees and costs involved when buying a property. To help avoid any surprises, the list below sets out many of the usual costs:
- Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To estimate your possible stamp duty charge, visit our Stamp Duty Calculator.
- Legal/conveyancing fees — Generally around $1,000 to $1,500, these fees cover all the legal requirements around your property purchase – including title searches.
- Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if you find any unwanted crawlies you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.
- Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
- Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also consider whether to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
- Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan.