FIRST HOME BUYER FAQS

As a first home buyer, you probably have dozens of questions that you want answered–Which home loan product should I choose? How much do I need for a deposit? Do I qualify for a first home owners grant? What interest rates are available for me? Do I want a fixed or variable loan?–and the list goes on. Here are a few of the most asked questions at Cash Back Mortgage:

Common Types of Home Loan
The First Home Owner Grant is an on-going scheme with no end date set.
No. The grant is also available for the purchase of an existing home.
No. The grant only covers purchasing of a home, not vacant land.
No. Only one grant is payable per eligible person regardless of the number of eligible applicants involved in the transaction.
No. There is no tax payable on the First Home Owner Grant.
No. There is no means test to determine your eligibility.
Yes. Effective from 1 January 2010 the First Home Owner Grant is capped and the grant will only be available for properties with a total value not exceeding $750,000 (depending on the State you live in).

It is advisable to allocate 4%-6% of the purchasing amount for these possible charges:

– Property Inspection and Strata Costs
– Application and Settlement Fees
– Valuation Fees
– Conveyancing Fees
– Stamp Duty
– Lenders Mortgage Insurance (LMI)
– Property Insurance
– Council Rates
– Connection Fees
– Removal Fees

Stamp duty is set by the State and Territory governments. It is generally based on the selling price of a property. The calculations and guidelines vary depending on the State and Territory concerned.
For starters, supporting documents indicating your identity and income are needed. These documents can include birth certificate, passport, driver’s licence, bank statements, most recent payslips and income tax returns.
Because lenders want to be as accommodating as possible, they offer flexible loan payment plans. Customers have the option to pay weekly, fortnightly or monthly.

Cash Back Mortgage simplifies the process of buying your First Home.

Call us for your FREE First Home Buyers E-book on 1300 640 988.

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