Understanding Lender’s Mortgage Insurance (LMI)
Key Takeaways Lender’s Mortgage Insurance (LMI) is an upfront fee charged by banks when you borrow more than 80% of the property’s value LMI protects the lender, not you as the borrower, if you default on the loan The cost of LMI can be significant, ranging from $6,000 to over $30,000 depending on the property […]
Document Checklist for Home Loan Application in Australia
Key Takeaways Applying for a home loan in Australia requires compiling a comprehensive set of documents to demonstrate your identity, your capacity to repay a loan and your recent conduct on any existing loans or other forms of credit like credit cards The primary documents needed include identification, employment and income verification, asset and liability […]
Home Loan Eligibility in Australia
Key Takeaways Key Point Description Personal Profile Applicants must be above 18 years old to apply for a home loan. Although there isn’t necessarily an upper age limit, mature applicants must be able to demonstrate their ability to repay the loan, especially when nearing retirement age. Applicants must also be Australian citizens or permanent residents. […]
How Your Employment Type Affects Home Loan Eligibility
Key Takeaways Key Point Description Full-time Permanent Employment Full-time permanent employees with regular income and benefits are viewed most positively by lenders. Lenders will ask for proof of employment as well as recent payslips. Part-time Permanent Employment Part-time employees with a fixed contract are also looked at positively by lenders. To assess home loan eligibility, […]
Mortgage Rates Will Keep Rising
A report from the Reserve Bank of Australia details that the RBA raised the cash rate by 425 basis points between May 2022 and December 2023. The average mortgage rates increased by 320 basis points—105 basis points less than the cash rate increase. Only around 75% of the cash rate increase passed through to the […]
How Much Deposit Do You Need for a Home Loan?
Key Takeaway Table Key Point Description What is a Home Loan Deposit? A home loan deposit is the initial payment a buyer makes when purchasing a property, representing a portion of the total purchase price. The size of the deposit impacts loan terms, with larger deposits leading to more favourable terms and lower rates. Additionally, […]
A State-by-State Guide to the First Home Owners Grant
Key Takeaway Table Key Point Description Definition The First Home Owner Grant is a nationwide scheme to encourage homeownership in Australia. If you are eligible, you will receive a one-time payment from your state government, which can help with the significant expenses of buying or building your first home. General Eligibility Criteria The basic criteria […]
Common Mistakes to Avoid When Applying for FHOG
Key Takeaway Table Key Point Description Common Mistakes to Avoid Some common mistakes when applying for the First Home Owner Grant (FHOG) include submitting an incomplete or incorrect application and failing to meet eligibility criteria. Applications also have set timeframes, so missing deadlines can make you lose out on the grant. Additionally, submitting your application […]
What Does the First Home Owners Grant Cover?
Key Takeaway Table Key Point Description What the FHOG Covers The First Home Owner Grant (FHOG) covers the purchase of a new home that has not been occupied before. Homes can be a standard house, a duplex, an apartment unit, or other eligible home types. The FHOG may also cover the purchase of a substantially […]
How to Apply for the First Home Owners Grant
Key Takeaway Table Key Point Description Application Process First, carefully check your eligibility as per your state’s criteria. Afterwards, collect all required documents depending on your citizenship, personal circumstances, and property type. Then, carefully fill out the FHOG application form from your state’s revenue office website and ensure your application is free from errors before […]