My wife and i are currently in the process of relocating to the Gold Coast. We wish to buy our first home there, but we are terrified about doing it. The both of us are currently unemployed (that’s the reason for the move), but i do have a few good looking prospects.
The things we would like to know is what would be the best way to go about finance ? Would it be a good idea to try and do a rent to buy sort of arrangement ? What sort of things do we need to look out for, when shopping for a loan ? We would need to borrow the whole amount against the house, as living in country NSW with very little employment, means saving is not an option with a family of 3 young children.
I know there is the first home owners grant, but even that is confusing, as we were told, you can’t use it for a deposit towards the loan, or to help with the payment of the legal fees. Is this true ? Also one last thing, are most home loan lenders able to loan a bit extra to pay for all the legal costs ?
Thank you for all your help.
Rob & Ky.Hi Rob & Ky,
Some lenders will allow you to use the FHOG towards the deposit, stamp duty or legal fees etc, however this will depend on the type of product you choose,
I think you will find it very hard if not impossible to get finance without employment, cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Steven,
Thanks for your input. Both of us plan on working before we actually apply for the loan. That is a big thing for us, we don’t want to fall into a huge hole and unable to get out of it. hahaha.
But in all seriousness, we will be both working, but that raises yet another question for us. How long do you need to be at work, before we can apply for a loan ? oh one last thing, how does the FHOG work, i mean do you need to have approval and living within the property for a certain amount of time, before being eligable for the grant ?
Hi Rob & ky,
The FHOG will be available at or soon after settlement, some lenders will process the FHOG application on your behalf and use the funds to cover closing costs lenders mortgage insurance, application and or lenders legal fees etc,The criteria for length of employment will vary between lenders, 12 mths 6 mths etc. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
What would be the best loan available for a first home buyer ? What are some musts with the loan ? What things do we need to look out for ?
Rob & Ky
That one is difficult answer:
Is it the loan with cheapest rate of interest, the lowest fees, limited charges, flexibility, portablilty, lower mortgage insurance premiums, redraw, offest a/c, professional package the lust goes on.
I would suggest that you contact a independant mortgage broker to get a clearer picture of your position.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Rob & Ky,
I am also beginning in the property investing arena, and at first I found a lot of the things you are talking about overwhelming. However – my best advice is to sit down and talk with multiple brokers. I have spoken with about 5 different brokers now, from different companies – each one of them had different peices of knowledge for me, and I found it very interesting to note the differences and commonalities in the information I received.
I also recommend you start to read as much as possible. I have began reading different property books & magazines such as “Australian Property Investor” and “yourMortgage” magazine – both of these are great! Every month they have covered relevant issues for those starting out in property.
Asking questions on this forum is also a great source of knowledge – but if you are just starting out and have financing questions – I strongly suggest sitting down with a broker and simply asking ‘this is our situation; we want to buy a house; what options are available to us’. They will be able to assess your income, tell you how much you need to save (or what you are able to obtain in equity – as a gift from a relative etc). There are financing options out there that will loan you 100% of the property value (in some cases even more, say 107%) however from the research that I have done, I would suggest to use those options as a last resort. The interest rate, penalties and restrictions on those loans can be quite costly! So do your research.
I wish you both all the best – and hope you get your dream jobs and house asap!
Cheers
InvestorInTraining [biggrin]5 Brokers!
One in theory should be enough, 2 if in doubt but 5?Talk to a Broker that is MIAA (http://www.miaa.com.au)certified and has done their training.
Alternatively speak to a Bank they should be able to give you the answers required.
But in saying that if you are not in the market they are probably fobbing you off as they know they are not going to get anything out of it.Where there is a will there is a way!
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