WITH LANIE CONQUEST First home buyers are \u201cin\u201d in terms of lender appetite!<\/p>\n
First Home Buyers now account for 19.6 per cent of all new home loans in Victoria.<\/p>\n
And the borrowing amounts are at historic highs, at $349,800 on average, which is a 10.1 per cent increase yearon- year.<\/p>\n
This comes largely off the back of the generous stamp duty waiver and First Home Owners Grant, particularly here on the Surf Coast where the grant is double our metropolitan cousins at $20,000.<\/p>\n
And at a time when general borrowing conditions have tightened, the areas where the banks want to compete, are on show – and First Home Buyers top the list.<\/p>\n
As a result, the terms available to some occupations, and simple applications can be generous:
\n\u2022 Up to 40-year terms
\n\u2022 Loan to Value Ratios as high as 98 per cent including Lenders Mortgage Insurance
\n\u2022 No genuine savings required where steady rent can be demonstrated
\n\u2022 Fee waivers
\n\u2022 Low fixed term rates (up to 5 years)
\n\u2022 Multiple offsets with no ongoing fees
\n\u2022 And lenders have been attempting to simplify Parental Guarantee arrangements to ensure parents can \u201cun-hook\u201d from the arrangement more easily once the kids satisfy the 80 percent LVR hurdles.<\/p>\n
But First Home Buyers (and their Parental Guarantees) need to proceed with caution. Some of the big things to watch:
\n\u2022 Lenders Mortgage Insurance (LMI) will add thousands to the cost of a loan if a Parental Guarantee isn\u2019t available, or a prudent option
\n\u2022 Parents with an existing mortgage in place need to be very cautious, as the arrangements can hinder future options, particularly for the parents
\n\u2022 LMI does nothing to protect the borrower, only the bank, so life insurance cover must be reviewed in light of new debt
\n\u2022 Even though stamp duty is exempt (for properties under $600,000, and subject to concession up to $750,000) there are still transaction costs to factor such as more minor government taxes, conveyancing fees, building inspections, loan application fees, and the like
\n\u2022 Savings and repayment capacity must be evident, through steady income and expense assessment
\n\u2022 New expenses are often forgotten such as rates, water and other utilities, as well as body corporate fees in some cases, and need to be factored into the budget
\n\u2022 There is no \u201ccooling off period\u201d at Auction, or for three days after an Auction has taken place
\n\u2022 And auctions typically require a 5-10 per cent deposit to be paid on the day. Surfcoast Life & Lending are running an Education Workshop for First Home Buyers on Tuesday October 2.<\/p>\n
First Home Buyers and\/or Parents all welcome.<\/p>\n
Tickets $20 and must be purchased in advance as numbers are strictly limited.<\/p>\n
For more information, call 0418 938 646, visit surfcoastlifeandlending.com.au, or follow them on Facebook.<\/p>\n","protected":false},"excerpt":{"rendered":"
WITH LANIE CONQUEST First home buyers are \u201cin\u201d in terms of lender appetite! First Home Buyers now account for 19.6 per cent of all new home loans in Victoria. And the borrowing amounts are at historic highs, at $349,800 on average, which is a 10.1 per cent increase yearon- year. This comes largely off the […]<\/p>\n