Buying your first home is a huge milestone and whilst it’s a very exciting time in your life, it is potentially one of the biggest investments you’ll ever make. On average it can take first home buyers five years to save enough for a 20% home loan deposit. You will be happy to know that there are ways to get onto the property ladder a bit quicker, such as the First Home Loan Deposit Scheme, the First Home Super Saver Scheme, and a Parental Guarantee (otherwise known as a Family Pledge).
If this crazy year has taught us anything, it’s how life can change and chances are that since you got your home loan, interest rates have moved. Since you took out your mortgage, your life has probably changed a little too. Your income and expenses may have changed, and your financial goals could also be different.
With the Christmas holidays just around the corner, possibly bringing with them a little down time, now could be the perfect opportunity to review your finances and think about your goals.
Lender’s Mortgage Insurance (LMI) is insurance that covers the lender’s risk within a residential mortgage transaction in case the borrower fails to make loan repayments. A lender considers a loan to carry a higher risk if the loan-to-valuation-ratio (LVR) is more than 80 per cent of the purchase property price, this is when LMI is payable.
If you consider that the average price of a home in Brisbane is $550,000, that would mean a deposit of around $110,000 would be required. The major benefit of LMI is that borrowers with smaller deposits are able to enter the market sooner rather than later, allowing the dream of homeownership to become a reality for a lot of first home buyers.
The HomeBuilder program, a $25,000 grant, is available to eligible owner-occupiers (including first-home buyers) wanting to substantially renovate their existing home or build a new home. This grant is tax-free and is available for contracts signed between June 4 2020 and 31 December 2020 with construction to commence within 3 months of the contract date. The government hopes that this will lead to between 25,000 and 30,000 new builds or significant renovations as they anticipate that the housing industry will go through a tough period following the economic fallout from COVID-19.
To all our valued clients and friends
At this unprecedented time the Seek Financial team would like to reassure you that whilst our focus is on the health and safety of our team and the wider community, it is business as usual for us.
We already have the infrastructure in place to allow us to work from home if needed, so please don’t hesitate to contact any of us if you need help with anything at all at any time during this crisis.