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.