Legals

Please note that the information provided on the website is general in nature and does not constitute financial or credit advice. Whilst every effort had been made to ensure that the information provided is accurate, individuals must not rely on the information to make a financial or investment decision. Such decisions require that your particular investment objectives, financial situation and individual needs be taken into account. We, at You First Group Pty Ltd, will endeavour to update the website as required. However, information can change without notice and You First Group Pty Ltd does not guarantee the accuracy of information, …

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Fixed Rate Home Loans

A ‘Fixed Rate’ home loan is one whereby your interest rate is locked in (ie fixed) for a certain period. Thus loan repayments will be charged at the same rate for however long the fixed rate period is – typically between 1 and 10 years. At the end of the term, the rate will revert to the variable rate of the day, unless you re-fix the loan. Fixing your loan gives you certainty of what your repayments will be and you can confidently plan your future.   Fixed loans are exactly that – a contract between you and the lender …

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Parental Guarantee

If you do not have sufficient funds for a deposit or don’t want to pay Loan Mortgage Insurance, your parents are able to guarantee your loan. This means that your parents can offer a portion of their property as security. The Guarantors (parents) security does not cover the entire loan – only a portion. Once the loan is below the 80% LVR the guarantee can be released.   Contact the team at ‘You First®’ to review your current situation and goals, and plan strategy to get into your first home sooner

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Saving Super for a Deposit

First Home Super Saver Scheme   This Fact Sheet will provide you with important information relating to the First Home Super Saver Scheme. https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/   BACKGROUND: The First Home Super Saver (FHSS) Scheme was introduced by the Australian Government in the Federal Budget 2017-2018 to reduce the pressure on housing affordability.  The FHSS Scheme allows you to save money for your first home inside your superannuation fund.  This will help first home buyers save faster with the concessional tax treatment of super. What is the First Home Super Saver Scheme?  From the 1st July 2018 individuals will be able to …

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Property Value vs Bank Value

  When you buy a house, the market value/ contract value, is an estimation of the property value. The bank will send out an independent professional party to value the property. Lenders do this as they use the property as security for the loan.   Contact the team at ‘You First®’ to review your current situation and goals, and plan strategy for the purchase of your new home

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What Costs are Involved?

  There are many other costs involved when buying a house. In addition to the purchase price of the home you will have other potential costs such as those listed below. First home buyers may have a reduction in the stamp duty. Stamp duty payable is different in each State. Stamp Duty Legal fees Transfer fees Registration fees Building and pest inspection Council utility rates Loan application fees Mortgage insurance Moving costs Insurance The team at ‘You First®’ will be able to assist you with advising on costs on your potential home loan. Contact us today.

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What is Lenders Mortgage Insurance (LMI)?

  Lender Mortgage insurance (LMI) is taken out where the borrower does not have sufficient deposit to meet the lenders normal lending criteria. When you are only contributing a small deposit, the lender takes a bigger risk in lending the money and requires a security to take this risk. It is required to protect the lender if the borrower is unable to meet the repayments. No Loan mortgage insurance is required if your LVR is below 80%.  Some lenders will allow you to include the Loan Mortgage insurance in the cost of your loan.   Contact the team at ‘You …

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How Much Deposit Do I Need

The Deposit is worked out on the purchase price of the property. Generally you require a 20% deposit. With the 2020-2021 First Home Loan Deposit Scheme, eligible first home buyers can purchase a modest home with a deposit of as little as 5% (lenders criteria apply). This is because the National Housing Finance and Investment Corporation (NHFIC) guarantees to a participating lender up to 15% of the value of the property purchased.  Normally, working out how much deposit you need is based on your individual circumstances. Planning ahead can help you save for a deposit Set your goals Set up …

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How Much Can I Borrow?

Your Borrowing Capacity is based on a number of factors: How much you earn How much current debt you have How many dependent children you have The amount of savings you have Which area you live in Depending on the Lender, some banks may go up to 95% LVR (of the property value – also known as ‘Loan to Value Ratio’).  For most banks, 80% LVR is the standard lend without Loan Mortgage insurance.  However, under the  2020-2021 First Home Loan Deposit Scheme, for those first home buyers with less than a 20% deposit, the National Housing Finance and Investment …

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