Do you qualify for the First Home Guarantee Scheme or the First Home Owners Grant? Or both?
We know buying a home as a first home buyer can be both a confusing and exciting experience, but here at Lendable, we strive to make the first home buyers journey simple.
The First Home Guarantee scheme allows Australian citizens purchase their first home with as little as 5% deposit (2% for single parents) without paying Lenders Mortgage Insurance? From 1 July 2022 – 30 June 2023, there are 35,000 places are available to eligible first home buyers.
Several states still offer First Home Owners Grants (between $10,000 and $15,000) for buying or building a new home. At Lendable, we’re up to date with all the first home owner grant and low deposit loan availability (including Keystart). We guide you through the process and answer all your questions. Your finance journey starts here!
Your Finance Journey
It starts with you first. We chat and discuss your budget. We get the right information. We find the right bank for your loan, explore government grants and get you pre-approval. Once we land on a budget you’re comfortable with, you can shop with confidence!
Your Finance Timeline
Finance basics
Your finance journey starts with ticking off all the basics. You’ll complete a simple form, sign a credit rating check, verify your identity and show us a recent payslip. We also discuss your eligibility for a first home builders grant and confirm your borrowing capacity.
Your finance journey starts with ticking off all the basics. You’ll complete a simple form, sign a credit rating check, verify your identity and show us a recent payslip. We also discuss your eligibility for a first home builders grant and confirm your borrowing capacity.
We talk finance
Now it’s time to sit down with your Lendable broker. You’ll be asked to bring supporting documentation. We’ll run through the proposed agreement, any first homeowner grants and explain the figures to you. You’ll sign paperwork to get your application for pre-approval underway.
Now it’s time to sit down with your Lendable broker. You’ll be asked to bring supporting documentation. We’ll run through the proposed agreement, any first homeowner grants and explain the figures to you. You’ll sign paperwork to get your application for pre-approval underway.
We do pre-approval
Pre-approval is kind of like the “maybe” before the official “yes”. It isn’t a confirmation of finance but the bank’s way of saying they’re willing to lend you money based on their conditions. We help you meet these conditions but you can attend an auction with confidence.
Pre-approval is kind of like the “maybe” before the official “yes”. It isn’t a confirmation of finance but the bank’s way of saying they’re willing to lend you money based on their conditions. We help you meet these conditions but you can attend an auction with confidence.
Bank valuation
One of the bank’s conditions is to value the property. If you are building they’ll request a copy of the land contract, signed builder contracts and house specs. The valuation can take a week to turn around.
One of the bank’s conditions is to value the property. If you are building they’ll request a copy of the land contract, signed builder contracts and house specs. The valuation can take a week to turn around.
You’re approved
Oh, hey! You got approved. Congratulations! You’ll sign mortgage documents and return to the bank. Now the finance application process is complete.
Oh, hey! You got approved. Congratulations! You’ll sign mortgage documents and return to the bank. Now the finance application process is complete.
Let’s settle
What’s settlement? It’s essentially the handing over of the deposit. After settlement, you’ll officially be a home owner. Our settlement agent will guide you through the process.
What’s settlement? It’s essentially the handing over of the deposit. After settlement, you’ll officially be a home owner. Our settlement agent will guide you through the process.
The keys are yours
Your bank will ask for a copy of the home insurance policy and if all payments have been made, you now own a new home. Go you!
Your bank will ask for a copy of the home insurance policy and if all payments have been made, you now own a new home. Go you!
If you're building…..
Construction happens over approximately 5 stages and a number of months. The builder will invoice you at each stage. You’ll pass these invoices onto the bank or Lendable so they can make a payment out of your loan funds on your behalf.
Construction happens over approximately 5 stages and a number of months. The builder will invoice you at each stage. You’ll pass these invoices onto the bank or Lendable so they can make a payment out of your loan funds on your behalf.
We work with you
Our service doesn’t stop at settlement – your Lendable Broker is here to help you with all your financial needs as you create wealth for your future. Through regular reviews of your home loan, a review with a financial planner, or help with personal loans, the team at Lendable will be here for you at every stage of your journey.
Our service doesn’t stop at settlement – your Lendable Broker is here to help you with all your financial needs as you create wealth for your future. Through regular reviews of your home loan, a review with a financial planner, or help with personal loans, the team at Lendable will be here for you at every stage of your journey.
Useful FAQs & Resources:
-
What is the First Home Guarantee Scheme? Do I qualify?
-
Did you know that the Australian Government established this scheme to assist Australian citizens purchase their first home with as little as 5% deposit (2% for single parents) without paying Lenders Mortgage Insurance? From 1 July 2022 – 30 June 2023, there are 35,000 places are available to eligible first home buyers.
-
-
How much deposit do I need?
-
The answer is probably not as much as you think! While some lenders want you to save a 20% deposit, we have access to lenders that can help you into your home with a deposit as little as 2%. Ask us how!
-
-
My loan is completely approved after it is Pre-approved?
-
NO… Pre-approval is still subject to a number of lender conditions. The main one being the bank valuing the proposed construction. You have not met your finance obligation at Pre-approval stage. On a percentage you are probably 60% there.
-
-
What is a guarantor home loan?
-
A guarantor home loan is a type of home loan where instead of a deposit you can use your parent’s property as additional security.
Most lenders will secure 80% of the loan amount on the property you’re buying and the remaining 20% on your parent’s property. In most cases the borrower will need no deposit.
-
-
What are Genuine savings?
-
Genuine savings are funds that you have accumulated over time (not including gifts). Most lenders require that at least 5% of your deposit come from genuine savings when your deposit is less than 10% of the property value. However, there are lenders that will consider rent paid in lieu of genuine savings, and even some that don’t require genuine savings at all!
-
-
What is LMI (Lenders Mortgage Insurance)?
-
LMI covers the lender in the event of the borrower defaulting on their loan. If the property is subsequently sold and the amount from the sale is insufficient to pay the loan off in full, this insurance will cover the lender for the shortfall. The insurer may then exercise their legal right to recoup this shortfall from the borrower. The lender applies for LMI not the borrower and the insurance should nor be confused with Mortgage Protection Insurance. The fee for LMI is paid as a once only fee at loan settlement and varies depending on the amount of money being borrowed and the Loan to Value Ratio (LVR).
-
Happy Lendees
Incredibly friendly
I want to personally thank you for all your help I wouldn’t have managed it without you. From our first meeting you made me feel comfortable working with you and your organization, at all times I felt I could trust you and you had my best interests at heart. Thanks for everything.
Over the moon
I’m emailing to let you know we received our keys today, and just wanted to say how grateful Monique and I are for all your help/advice you have given us. We can’t even describe how happy we are with the end result.
Tireless efforts
We can not thank you enough for your tireless efforts in helping to get this over the line and settled. What you did for us yesterday amazes us and we are so grateful.
Borrow sooner. Buy smarter. Build better.
Lendable puts first home buyers in control of their situation. We’ll work with whatever your financial situation is to get a better deal from your lender.
