August 2017: Featured home loans for first home buyers
Are you an aspiring first home buyer looking for your first home loan within the next 6 months?
If this is you, then you may want to consider the current specials that are available right now, because when it comes to buying your first home, every bit counts. Whether you are looking for a low deposit loan, construction loan, fixed rate loan or a special loan for certain professions, we have got you covered. Keep reading for the details!
Our team of expert FHBA Coaches, who are also fully qualified Lending Advisers (Mortgage Brokers), have handpicked some of the more special home loan offers that are currently available through our exclusive first home buyer mortgage broking service – FHBA Mortgages. FHBA Brokers perform a number of tasks, from the moment you first seek them out until you settle on your first home (and even beyond that with ongoing loan reviews!) – at no charge to you!
1. Family Guarantee Loan
- Borrow 100% of the property purchase price
- Get an additional $50,000 cash out for renovations
- Borrow an additional 5% for debt consolidation if you have outstanding car loans or credit cards!
- Applicable for construction loans
- Interest rate below 4%
This home loan product is not available for everyone, but it is a great option if your parents are willing to provide their property as a guarantee for your first home loan. This is a good loan option if you currently have other debts which you are looking to consolidate into one easy to manage repayment alongside your home loan.
2. Special Fixed Rate² (FHB’s only)
Key features of this offer include:
- 5 year fixed rate at 3.99% (comparison rate 4.38%)
- Can borrow up to 95% of the property purchase price (inclusive of LMI)
- Waiver of first year’s annual package fee
- $1,000 discount on the LMI premium (if applicable)
- Minimum lending amount required is $150,000
This offer has been extended and is available to first home buyers only, until further notice!
The key to unlocking your first home may not be as far away as you think it is!
3. New 95% Construction Loan
We have access to a new product on the FHBA Mortgages panel. The lender offering this product is owned by one of the Big 4 banks – providing you with security!
Key features of the product:
- Maximum LVR for a full-doc loan is 95% – Lenders Mortgage Insurance will apply
- Loan repayments are interest only during construction, which may provide potential cash flow benefits
- No set time for construction commencement after land settlement, thus providing a great deal of flexibility
- ‘At Completion’ valuation carried out at no cost to you
- One year fixed rate option available
- Rent can be used as genuine savings³
- Competitive rates offered
Generally speaking, you will require a 8% deposit (approximately) – However, LMI Capitalisation¹ can be used up to 95% of the property purchase price.
4. LMI Waivers
The below professionals (regardless of seniority in their roles) may be eligible for 90% loans (90% of the property value, 10% deposit) without paying any Lenders Mortgage Insurance. This waiver is available with a large number of lenders (including the Big 4 Banks!). Some professions which are eligible include:
- Medical Practitioners (includes vets, pharmacists & optometrists)
- Chartered Accountants
- Legal Professionals
- Mining, Energy & Resource employees
Click below to find out if your occupation allows you to borrow 90% of the property purchase price and not have to worry about paying a cent of LMI!
Glossary of Terms:
¹LMI Capitalisation – Whereby the Lenders Mortgage Insurance premium is not paid upfront by the borrower but instead added onto the total loan balance and therefore paid over the term of the loan by the borrower
² Fixed Rate – A fixed interest rate loan is a loan where the interest rate doesn’t change during the fixed rate period of the loan giving you certainty in your repayments
³ Genuine Savings – Funds to be used as a deposit by a proposed borrower (for a property purchase) have been genuinely saved over time – usually between 3 and 6 months
Every aspiring first home buyer’s situation is different, therefore it is important to get some expert advice on which product is suited to your needs.
Are you looking to compare these different home loan products? Perhaps you just want to know your borrowing capacity or get a better understanding of how your first home loan works? Click here to speak with an FHBA Mortgage Broker.
Disclaimer: The information on our website including this page is general in nature and should be solely relied upon. The advertised rates above were true and correct at the time of the publication. The rates do not take into account other fees and charges which you should also consider. The credit license responsible for the mortgage service offered to clients is Mortgage Australia Group Pty Ltd, Australian Credit License (ACL) number 377294, Australian Business Number (ABN) 99 091 941 749. Mortgage Australia Group Pty Ltd is a member of the Mortgage & Finance Association of Australia (MFAA). FHBA Pty Ltd is an authorised credit representative of Mortgage Australia Group Pty Ltd. You should seek professional advice when obtaining finance and purchasing your first property.
First Home Buyers Australia