Spring first home loan specials (September 2017)
Are you an aspiring first home buyer looking to buy in this spring season?
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. Regardless of what your financial position is, FHBA is well positioned to provide qualified advice for all first home buyers – if you aren’t ready we will tell you what you need to do in order to be ready!
1. ABN Contractor/Self-employed first home buyers
If you have recently changed from being an employee (PAYG employee) to working under an ABN structure (either as a sole trader or as a private company) you may still be eligible for a home loan! If you went directly to a bank they are more likely to inform you that you are not ready as you haven’t held the ABN for a minimum of 12 or 24 months.
At FHBA Mortgages, we feel you shouldn’t be punished for not being able to get a home loan if your income situation has changed, therefore we are pleased to say we have access to a few lenders who will look at your latest tax return and use those income figures to determine your borrowing capacity, provided you are currently earning a similar or higher income.
Click below to discuss your situation with an FHBA Coach/Broker.
2. 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 personal loans, 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.
3. Construct your dream home with a 5% deposit
A mid tier lender is offering first home buyers only an opportunity to construct your first home with a 5% deposit- providing you with security! Key eligibility criteria of this product is as follows:
- 5% must be held in genuine savings³ (rental history is not applicable for this product)
- 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
- Competitive rates offered
- LMI Capitalisation¹ is allowed over and above the 95% loan
- The FHOG can be used to pay for your new furniture or you can add it to your existing 5% deposit
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 or be required to show genuine savings!
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. Written By, First Home Buyers Australia