Buying a house for the first time? Awesome!
If you’re one of the thousands of Australians out there who are about to jump into the property market for the first time, congratulations! You’re embarking on a fantastic adventure that will change your life in lots of ways.
But before you take the plunge, it’s worth getting clued up on some industry secrets on home loans Brisbane that will help make your journey a little bit smoother. Here’s what every first home buyer should know.
Keep reading if you want to maximise your chance at success as a first home buyer!
Industry secrets you need to know when taking out Brisbane home loans for the first time
What is a first home buyer from the government’s perspective?
If you’re wanting to apply for a first home buyer scheme like the First Home Owner Grant (FHOG), First Home Buyer Stamp Duty Exemption, and other first home buyer grants — you will have to know how to qualify for one.
A first home buyer in Australia is an individual (not a company or a person acting as a trustee) who is buying a house for the first time. They must not have owned a residential property in the country prior, and must be at least 18 years of age. They must be an Australian citizen or a permanent resident.
Can I avoid paying the first home buyer stamp duty?
Yes! In Queensland, the First Home Buyer Stamp Duty Exemption is applicable to properties valued under $550,000. Under this concession, you can save up to $15,925. Special guidelines apply to foreign homeowners.
Go to the official Queensland Government website to know more. You can also consult with a Brisbane mortgage broker so they can show you the ropes on availing the stamp duty concession QLD.
What is needed for first time home buyer?
To successfully apply for home loans Brisbane as a first home buyer, you must present:
- At least 20% deposit to avoid paying the Lenders Mortgage Insurance, but you can get in with as little as 5% plus costs
- A buffer amount for extra costs such as stamp duty, conveyancing fees, inspection fees and rates
- proof of identity
- payslips or a tax return to demonstrate repayment capacity
- savings account statements or evidence of a deposit
Can I use my super to buy a house?
Definitely. First home buyers can access their super under the Federal Government’s First Home Super Saver Scheme (FHSSS). However, the FHSSS scheme is designed for first home buyers who will use only their voluntary personal super contributions (not employer contributions).
You can use up to $30,000 of your voluntary contributions – either pre-tax or post-tax contributions – as the deposit on your first house. These are extra contributions you will make over and above your normal employer super contributions.
Starting July 1, 2022, the amount a super member can release from their voluntary contributions will increase to $50,000 per person.
Can home builder grant be used as deposit?
The Home Builders Grant is a $15,000 tax-fee incentive given to eligible first home buyers and/or owner-occupiers. It can be used to build a home or renovate an existing one.
The grant can be used alongside other grants like FHOG, First Home Loan Deposit Scheme, and the FHSSS.
Before, the grant could not be used as a deposit, nor could it be used as 5% genuine savings. However, some lenders and states have begun accepting the home builders grant as funds to complete — meaning to say, you can now use it towards your deposit to help you reduce your Lenders Mortgage Insurance cost by thousands!
If you’re not sure whether you’re eligible for the grant or you’re confused about how to use it, the mortgage brokers in Brisbane can help you out. They’ll be able to assess your individual situation and provide you with advice on the best way to use the grant to get into your first home.
Consult the Brisbane mortgage brokers at North Brisbane Home Loans
So there you have it, our top secrets for first home buyers. Of course, this is just a starting point – if you want to know more about the ins and outs of the property market or get help finding your dream home, talk to our NBHL mortgage brokers Brisbane. They’ll be able to give you expert advice on how to get into the market, what kind of loans are available to you and how to make the most of your budget.
Ready to take that next step? Give us a call today!
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
