Bit different, we built.
We saved 60k and borrowed 290k. We used 30k for deposit and 30k for furniture, landscaping, driveways, fences etc. we only used 15k ish for all that so the rest just went against the mortgage as redraw option. It is sooooo much cheaper building, even if its just to get your foot in the door
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17-11-2013 09:38 #11Senior Member
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- Oct 2012
17-11-2013 09:41 #12
10% is preferable , 20% even better as then you won't need mortgage insurance
You will also need to factor in your solicitor , pest and building, strata, valuation and bank fees and stamp duty ( depending on the price and if you get any first home buyer benefits)
In nsw the only first home buyer grant now is for new buildings
As pp have said - see a mortgage broker and work out your borrowing capacity and what you can realistically afford to repay , then start looking at houses in that price range so you become an expert on prices in that area
Become best friends with the real estate agents! Not only as they can let you know when new ones come up but for their market knowledge , look at anything and everything so when you do find the house you love you will know what its worth
17-11-2013 09:45 #13
IMO definitely check out a mortgage broker. We found this very helpful and meant we got the best deal. Sometimes you can get a special loan rate for example the first 3 yrs where the interest rate is 1% lower then the standard offer they have (this was through one of the big banks). Our broker was able to explain and compare lots of different options from diff banks which was very helpful.
We were able to get a home loan when I was only employed casually (working mostly full time hours though) and studying and he was earning about $40 000 yr with a 10% deposit so don't think it can't be done. We didn't include our first home buyers grant in our deposit so we were able to put in air con (well worth it!) and I bought a nice second hand car outright (no car loan, woohoo, they're expensive!) We were 20 and 23!
I'm pretty sure that first home buyers do not need to pay stamp duty on houses under $500 000, atleast not in WA!!
Also think about having a guarantor if you have a good relationship with either parents. Saved us a heap on loan insurance and then we paid off as much as we could as quickly as we could and then when we reached 20% equity we refinanced and the guarantor was no longer needed
Last edited by CatesBean; 17-11-2013 at 09:49.
17-11-2013 09:49 #14
I had 20% deposit which was $75k....I bought a 2 bedroom flat for $373 000, so borrowed about $300k.
The deposit included the first home buyers grant in WA which was about $10k at the time (not any more)
I didn't want to buy without 20% deposit so I lived in crapola places until I had it including working rural for a few years in jobs which came with accommodation.
17-11-2013 09:51 #15
I know a lot of people save a 10% deposit but we save a bit more (can't remember how much though? Maybe 30%?) and it really made a huge difference to the life of our loan. I would suggest, if you can, paying MORE than the required repayments per week right from the beginning.
We also put all our savings into redraw and have a variable rate. Fixed rate is always a few % higher than variable and you just never know when you will get caught out.
This has worked for us, our loan went from 30 years to about 12 already and that's over a 4 yr period. We still live a fairly comfortable life too.
17-11-2013 14:54 #16
We bought ours about 8 years ago. Had enough for 20% cash deposit but with real estate these days we wouldn't be able to save 20%.
Went through the bank. We poured money on before we had kids but have not been able to do that since our first was born. We spilt the loan at one stage to fixed/ variable. Looking at fixing again soon before rates start going up.
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Last edited by CleverClogs; 17-11-2013 at 14:56.
17-11-2013 15:05 #17
Bought for 415k
Used broker but regret it as they offered bad advice.
17-11-2013 15:19 #18
Independent brokers get paid higher commisions from certain lenders so are obviously favourable to certain banks.
There is a national company that is paid the same commision from every lender and it costs you nothing to use their service. Not sure I am allowed to name them especially since I work for them..
Brokers have access to all the same deals the banks can offer, even better deals most of the time.
You need 5% savings as an abolsute minimum. 10% for certain lenders. This needs to be evidenced with 3 months of statements. You can also use gifted funds to contribute towards a deposit aswell as savings- this requires a stat dec from the giver confirming money is a non repayable gift.
If you borrow more than 80% of the property value then you will have to pay LMI (Lenders Mortgage Insurance). LMI is NOT insurance for you, but rather for the bank, and is added on to the loan.
In SA currently there is a $7000 FHOG and then an $8500 HCG (housing construction grant) for building or buying a brand new home. The HCG is available to everyone, first home buyer or not - but a build contract must be signed by 31st December. FHOG currently cuts out 31st June 2014.
You also need to factor in upfront costs - conveyancing fees (which include land title office & stamp duty) and ongoing fees such as rates, water, building insurance, maintenance.
If anyone would like more info, feel free to pm me.
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17-11-2013 18:53 #19
We first bought about 7 years ago.
We had about 25k saved plus we got about 7k in first home buyers grant , which covered fees/costs.
Back then we bought a basic 3 bedder old Qlder within 4kms of Brisbane CBD for about 400K. We have since recently re-financed (adding an extra 100k to mtge) and spent about 150k on renos including new kitchen, bath, added ensuite extra bedroom and a big deck.
We used a broker for the initial buy and for re- finance, so much easier.
Last edited by DailyDiversion; 17-11-2013 at 19:01.
17-11-2013 19:07 #20
We met with a broker to get the gist of how mortgages work, then went to the bank. It was interesting because the 'best' package offered by the broker by our bank was actually the 'worst' package for us. So we met with the bank and showed them what the broker recommended and they put us on a much better package for our needs.
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