If so, now is a great time to enter the market and make your first big investment.
The issue of housing affordability in Australia over the years has made it difficult for first home owners to make the big move and purchase a home. Within the Australian housing market, the barrier to entry is extremely high for first home buyers. It takes nine years for the average Australian to save for a 20 percent home loan deposit. This is a massive challenge for many first home buyers.
As a result of the Covid-19 pandemic, there has been a trend of Australian housing prices significantly declining, with rates at historic lows. This provides first home buyers, such as yourself, with great savings when purchasing your own home.
The Australian Government aims to lessen the hurdle of purchasing a new home by filling the deposit gap. The “First Home Loan Deposit Scheme” was announced with the intentions of making it easier and less costly for Australians to be putting down a deposit for their new home.
This scheme aims to target the barrier to this market, by securing the mortgages of eligible first home buyers who have a 5-20 per cent deposit of the purchase price. Not only does this lower the barrier to buying your first home, but you won’t be subjected to paying thousands in Lenders Mortgage Insurance fees. The Australian government will instead act as your mortgage insurer, guaranteeing your mortgage.
The “First Home Buyers Grant” is another Australian Government initiative that helps first home buyers with purchasing or building their first home. The eligibility criteria of the grant differs in each state and territory. Despite this, it generally applies to first home buyers who are purchasing an existing home (that has not previously been lived in), or building a new home altogether.
First home buyers can access both of the described grants through lending institutions, including mortgage brokerages. Brokery can take the stress out of this process, helping you to connect with a mortgage broker whom you can trust to guide you through the home lending process.
Brokery grants you the ability to find the top mortgage brokers in your local area, whom you can rely on to provide quality financial advice that is tailored to your own personal situation. All you need to do to contact your desired mortgage broker is simply enter your postcode and submit a form with your details. Brokery takes care of the rest of this process, simplifying your home lending journey.
Author: Kayla Trajanovski
With the current market conditions, many banks have approval cycles that have blown out to up to 30 days for some financial institutions. Working with a mortgage broker could help speed that process up.READ MORE