Buying your home is the most
important purchase you will ever make.
TOMS
can help First Home Buyers to understand what they
need to apply for their loan and what they can expect
from a lender.
We
can also help obtain all that you are entitled to,
in the form of Government assistance.
When
buying your very first home, although it is a very
exciting time for most people, it is also one of
the most frightening and overpowering times. Quite
possibly this will be the largest purchase you will
ever consider and the mortgage you take on board,
will be a commitment for many years.
There
are many things to consider before you purchase
your first property
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How
much deposit will I require?
Generally you will need to show that you have
genuinely saved 3 % of the purchase price of
the property. You will also need to have another
3 - 4 % to pay such things as your legal fees,
Government registration fees, Government Stamp
Duties, Lenders application fee and Lenders
Mortgage Insurance. If you are entitled to Government
assistance, this may help you towards these
requirements.
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How
much can I borrow?
Your income and expenses govern the amount you
can borrow. Each lender has a different way
to calculate how much they will be willing to
lend to you. They will all take into account
normal living expenses, payments on existing
loans, credit card commitments, maintenance
payments, and other regular payments which will
continue to be paid after they give you your
new loan. The lower your commitments the more
you can borrow.
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What
are the costs to set up a loan?
There are several different fees that you will have
to pay to purchase your new property and establish your
new loan. They include but are not limited to, Government
Transfer Stamp Duty, Government Mortgage Duty, Legal
fees, Government registration fees, Lenders Application
fee, Lenders Mortgage Insurance (LMI). These fees all
vary depending on the purchase price of the property
and the amount you want to borrow. A safe figure is
to estimate that you will need to have approximately
an additional 4 % of the purchase price of the property
to cover these fees and charges. Depending on the amount
you pay for the property and the amount you need to
borrow there are Government schemes to help First Home
Buyers.
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What paper work do you need to
have to apply for your first home loan?
(See link below)
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Do you need a guarantor?
Generally lenders will not want to use a guarantor.
When they do require a guarantor, it will generally
be in the form of a relative allowing the lender to
take a mortgage over a residential property which the
guarantor owns. They will prefer not to take the guarantor's
principle place of residence, but will sometimes use
a residential investment property.
The guarantor must be able to support the full loan
repayment by themselves if you default and cannot make
the payments. And therefore, the guarantor must be able
to qualify for the loan in their own right before they
can act as guarantor for your loan.
The legal requirement for somebody acting as guarantor
is that they must be getting a financial gain from the
risk they are taking
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