Summer is already upon us in 2018, with Christmas only a few weeks away. On the 4th of December 2018, the RBA also decided to leave the cash rate on hold, which means rates have been on hold for the full calendar year of 2018. Whilst some lenders have increased their rates this year, FHBA Mortgages continues to offer home loan products that will please first home buyers, even in the current environment where lenders are cracking down.
As most first home buyers are already aware, the first step of the home loan journey is the ‘home loan pre-approval‘.
Whilst December & January are quiet months for the property market, there are some bargains or good buying opportunities that present themselves from depressed sellers, which means it is a good idea to get your pre-approval sorted now if you are planning to buy, after all, there are plenty of options out there with listings at a record level in some areas. We have handpicked some of the latest home loans offers that are currently available through our exclusive & complimentary first home buyer home loan service – FHBA Mortgages, below:
1. Have a 12% deposit? And are you looking for an unbeatable rate?
One lender on our panel of lenders is offering a very special home loan product with the following features:
- Only available for a limited time
- Variable rate of 3.64% (Comparison Rate 4.03%)
- Borrow up to 90% of the property value (inclusive of LMI³)
- Fixed rate of 3.76% for 3 years (Comparison Rate 4.59%)
- Available for construction
- 100% offset account available
This special won’t last long and we can turn around a fully-assessed pre-approval or an unconditional within 3 business days!
2. Cashback & Low fixed rates combined
One well-regarded lender (owned by a major bank) is offering a special product that is available to those first home buyers looking to borrow up to 95% of the property value:
2 year fixed rate
- 3.75% actual rate
- 5.10% Comparison rate
- Cashback: $1,500
3 year fixed rate
- 3.85% actual rate
- 5.01% Comparison rate
- Cashback: $1,500
Other important features of this product include: Offset account with fixed rate loan, no upfront fees, ability to use your rental ledger in lieu of genuine savings and LMI capitalisation¹ available
3. I have started a new job and I am still on probation. Will anyone accept my income?
Have you already approached a lender who hasn’t used your income because you haven’t worked enough and are still under probation? We find this is very common for aspiring first home buyers who approach banks directly!
At FHBA Mortgages we have access to a few lenders who will take still approve your first home loan if you only have one payslip and are subject to a probationary period. The good news is that you won’t need to pay a higher rate in order to get your overtime income assessed at the higher level – you will be eligible for very low rates from 3.69%!
Simply click below to contact us, so we can assist you with your short-term employment situation – we are the short term employment specialists!
4. 3,6 or 12-month contract jobs
Have you been offered a contract job or are currently working under a contract rather than full-time employment? Just because your job isn’t permanent and ongoing it doesn’t mean that lenders won’t consider your income.
Our FHBA Brokers have access to quite a few lenders who will accept your income regardless of how long you have been employed as a contractor for.
If you are in a contract role don’t worry some lenders will still treat as a full-time employee – click below to get started with your first home loan
5. Manage your repayments + rent during the construction of your first home
If you are looking for fixed rate certainty while you are renting and building your first home then we have some options available to you, and that too with a major lender.
The 3 year fixed rate that only first home buyers are eligible for is 3.79% and you will pay only interest during the construction period, assisting you by giving you an exact indication of your repayments so you can budget accordingly.
You can borrow up to 95% of the property purchase price with this particular lender – allowing you to get into the market with a small deposit. To find out more about this product, please click below:
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 LMI – Insurance premium charged by mortgage insurers – this protects the bank in the event of the borrower defaulting on their home loan obligations.
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 comparison rates are true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. 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