Buyers Guide

Homework for Financing Your Home Purchase

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Before you do anything...

Before you buy or build a home, find out about your financing options by asking banks and other financial institutions how much you can loan and balance your lifestyle by thinking about how much you can you afford?

Firstly establish:

  • if you are eligible for a loan with several lenders
  • how much you need for a deposit for each lender
  • what commonwealth and state style-based lending assistance may be available to you

The following links may assist you find suitable grants. This may not be an exhaustive list and you should undertake you own research.

First Home Owner Grant - General Information

First Home Loan Deposit Scheme

  • if funds are always available, carefully examine the terms and purpose for the assistance, and share your research with your preferred lender, and
  • finally, how much you can borrow.

The size of your loan will usually depend on:

  • your income
  • the interest rate
  • the term of the loan
  • your other commitments, such as credit cards and personal loans
  • whether you have sufficient disposable income to service the loan
  • shown financial commitment and /or have enough to pay a deposit on a property
  • are in dependable /regular employment

Buyers often focus on the purchase rather than the loan and can become disenchanted when their heart becomes emotionally attached to a property and they haven’t done all their homework, as a last minute style approval and finance check can stop the best researched property purchase in its tracks.

Wish to know more ?

You may wish to contact the following state department

Western Australia, Sale by offer and acceptance’

South Australian Home buying process

NSW Guide to Purchasing Your Home

Victoria - Planning to buy property

Queensland - buying-and-selling-a-property

You should independent legal advice when purchasing a property, prior to signing a contract for sale.

Other fees and expenses to consider

Other home purchase costs vary considerably depending on the type, location and value of the property. This site provides an indicative guide to some of the costs you will need to pay when you buy a home, the costs are approximate only and are subject to change. This may not be complete list of fees and expenses.

You will need to budget for

Finance fees and loan application fees

Types of Lenders

There are many different types of home lenders. Each has different interest rates, terms, conditions and lending criteria and most offer integrated financial services (eg. home loans, saving accounts, cheque accounts, credit card access and financial planning and investment services).

Most home loans are underwritten by banks, building and credit societies and cooperative housing societies who provide loan both directly and through third parties.

Types of Loans

A standard variable interest rate loan is the most popular type of home loan that provides a variable interest rate that can go up or down throughout the term of the loan. Features, such as added flexibility in making repayments and a redraw facility, are often included in this type of loan.

Repayments are usually monthly and remain the same throughout the term of the loan, changing only with the rise and fall of interest rates. Normally, in the early years of the loan, each repayment is mostly paying interest charges and less of the loan principal. In later years, the opposite occurs.

Standard variable interest rate loan is the most popular type of home loan that provides a variable interest rate that can go up or down throughout the term of the loan. Features, such as added flexibility in making repayments and a redraw facility, are often included in this type of loan.

Repayments are usually monthly and remain the same throughout the term of the loan, changing only with the rise and fall of interest rates. Normally, in the early years of the loan, each repayment is mostly paying interest charges and less of the loan principal. In later years, the opposite occurs.

Other Loan Features