How much can I borrow?
Different lending institutions all have different borrowing criteria however generally the amount you can borrow will depend on a number of variables which include the following:
- What income you earn.
- The amount of your deposit.
- Your current ongoing financial commitments.
- Allowing for adequate living commitments.
- Understanding your future intentions.
Our loan calculators can assist provide you with an indication of how much you may be able to borrow.
How much deposit is required?
The amount of deposit required can vary between lenders however the more deposit you have available the less you will need to borrow. Normally most lenders require a minimum 5% of the property purchase price to be provided as a deposit plus ensuring you have sufficient additional funds to meet all associated purchase costs eg Stamp Duty, Legal Costs. If you have less than 20% deposit most lenders will require the loan to be underwritten with Lenders Mortgage Insurance which requires a one off insurance premium to be paid by the borrower to protect the lender from any potential losses they may incur. To avoid having to pay Lenders Mortgage Insurance, borrowers usually need to have deposit of 20% plus sufficient funds to meet associated costs. There are other options you could consider in lieu of lenders mortgage insurance which include the Australian Government Home Guarantee Scheme, a Lower Deposit Loan provided by certain lenders or even Family Guarantee support.
What are the additional costs?
The costs associated with purchasing a property vary between state to state however would normally include the following;
- Stamp Duty on Transfer
- Registration of Transfer
- Registration of Mortgage
- Bank Establishment Fees
- Lenders Mortgage Insurance
- Search costs
- Legal costs
- Building inspection reports
- Home Insurances
- Relocation expenses
Our associated costs calculator can assist provide you with an estimate of your costs.
First Home Buyers Grant
You may be eligible to qualify for a First Home Owner Grant from your state government. This grant varies between states and further information can be found from the following sites;
- New South Wales: NSW Office of State Revenue
- South Australia: RevenueSA
- Queensland: Office of State Revenue
- Queensland: Office of State Revenue – Regional First Home Owner Grant (RFHOG)
The Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.
The HGS includes:
- The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%. 35,000 places are available each financial year
- The Regional First Home Buyer Guarantee (RFHBG) - to support eligible regional first home buyers to buy a home in a regional area. From 1 October 2022, 10,000 places are available each financial year to 30 June 2025
- The Family Home Guarantee (FHG) – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. 5,000 places are available each financial year to 30 June 2025.
How to apply
Check your eligibility: Use the National Housing Finance and Investment Corporation (NHFIC) website to check your eligibility.
Get in touch: Book an appointment with your Professional Finance Broker and complete your home loan application.
Submit your application: Get conditional approval from your Professional Finance Broker. They’ll then collect the documents required for eligibility and reserve your place in the Scheme.
Buy your first home: You’ll have 90 days to purchase your first home after you’re approved in the Scheme, then all you need to do is settle and move in.
