Purchasing

Here's what you need to know when buying a home:

• Genuine savings are required for a minimum 3% deposit of the amount you wish to borrow, as well as money to pay all related loan fees and purchase cost fees, if you wish to access the lower interest rate available to home buyers.
  
• You can still access the lower interest rate if the deposit is equity in an existing property or coming from the sale of another home.
  
• If you have a 10% deposit of non-genuine savings, as well as money to pay all related loan fees and purchase cost fees, you are still able to access the lower interest rate available to home buyers.
  
• If you do not have a deposit saved, or you have a deposit of less than 10% genuine savings, you are able to access a home loan at a slightly higher interest rate.
  
• Money is also required to pay the related loan fees which are usually between 5% - 6% of the property purchase price.
  
• Your income will be assessed, the level of income you need to live off, and the remaining disposable income you have to service a loan with. Stability of income is also taken into account.
  

Your existing credit card and personal loans are also considered to measure how much of your income is already committed.

First Home

Here's what you need to know when buying your first home:

• Genuine savings are required for a minimum of 3% deposit of the amount you wish to borrow, as well as money to pay all related loan fees and purchase cost fees, if you wish to access the lower interest rate available to home buyers.
• Genuine savings are not gifted and are usually required to be shown as saved over a 6 month period.
• If you have a 5% deposit of non-genuine savings, as well as money to pay all related loan fees and purchase cost fees, you are still able to access the lower interest rate available to home buyers
• If you do not have a deposit saved, or you have a deposit of less than 5% of genuine savings, you are able to access a home loan at a slightly higher interest rate.
  
• Your income will be assessed, the level of income you need to live off, and the remaining disposable income you have to service a loan with. Stability of income is also taken into account.
• Your existing credit card and personal loans are also considered to measure how much of your income is already committed.

Fees & Exemptions

There are many fees when buying a new home and setting up a loan. These fees generally come to an additional 5% - 6% of the property purchase price.
There are several grants or exemptions that first home owners may be eligible for.

Each state and territory have different laws and regulation regarding these fees and grants. Click on the state or territory you are purchasing the property in to access more information on the exemptions, concessions and grants. You will also find the application forms for each of them where possible.

For more information on the First Home Owners Grant refer to www.firsthome.gov.au