First home buyer basics – what you need to know

November 30, 2018

First home buyer basics – what you need to know

First home buyer basics – Policies vary between banks, however these are the basic rules for borrowing:

  • The property will be held as security for the home loan
  • Buyers cannot borrow more than the house is worth
  • There will be some government fees to pay for the purchase which depends on the property price and state
  • The minimum deposit most banks require is five per cent of the purchase price
  • Lender’s Mortgage Insurance or risk fees are payable if buyers have less than 20 per cent of the purchase price to go towards the purchase
  • Lender’s Mortgage Insurance covers the bank NOT the customer
  • Conveyancing fees are approximately $1500 plus utility adjustments
  • Pre-purchase building and pest inspections cost approximately $300 each
  • Pre-approvals or homeseeker loans are available before you find a property

If you are considering purchasing a home for the first time, it is best to speak with a professional about your individual circumstances and needs to get you on the right track to owning a home.

Disclaimer: These policies are general in nature and may differ slightly from bank to bank.

Home loans with Deborah MurphyDeborah Murphy
Aussie Dream Home Loans
Phone: 0439 772 373

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