Getting the deposit to build or buy that first home.
Trying to save a deposit for your first home whilst still renting is virtually impossible, but there are ways that can assist you get into your home sooner.
Posted June 27, 2016 by Kerry
Almost 50% of first home buyers get financial help from their parents or family to assist with the home deposit. This is normally as an informal loan or gift. But there are other options.
The recent Tasmanian budget saw the extension of the First Home Builder’s Grant (FHBG) and increased it from $10,000 to $20,000. To be eligible, you cannot have owned a home before, and must build a new home or buy a home that has recently been constructed and never lived in. This can be used as part of your deposit.
A family member can use equity from their own home to provide additional security for a portion of your loan amount. This solution reduces your loan to value ratio and can also save you a significant amount of money by reducing or even avoiding the need to pay lender’s mortgage insurance. It may also enable you to borrow the total purchase price plus costs, avoiding the need to save a deposit (subject to lending criteria). This strategy can also be used when buying established dwellings but of course, you will not be eligible for the FHBG.
So get into your own home faster with the help of your family.
A broker can be your best friend offering accessibility, choice, experience, specialisation, follow up, and is your own personal banker.
Finance Brokers of Tasmania have been operating in Tasmania for 30 years and specialises in all forms of lending including – residential, commercial, motor vehicle, equipment, and much more. We have access to a large panel of lenders, - and very competitive interest rates. Contact us on 6224 4402 for a no obligation discussion.