hi great video , any tips on buying a home to upgrade for more space , then renting the first property out that has equity built up, which can be used as a deposit for new purchase ?
Here are some tips for upgrading to a larger home and renting out your current property: Assess Your Equity: Determine the equity in your current home. This can be used as a deposit for your new purchase. A professional valuation can help you understand the exact amount. Refinance Your Loan: Consider refinancing your existing loan to access the equity. This can provide you with the funds needed for the deposit on your new home. Rental Income Potential: Research rental income potential for your current property. This will help you understand the financial benefits and manage your budget. Feel free to reach out if you have more questions or need further assistance! 🏡😊
Wait.... The 8-10% deposit thing. Don't we have to pay LMI because of that? I've heard that I need to be with the same employer for at least 6 months to qualify a first buyer home loan. And if I'm casual, it has to be almost the same hours every week. Is that true? Thank you!
Thanks Nadia, great question. We also have government schemes that allow LMI waivers plus some lenders will also look at LMI waivers for first home owners too. Also, some occupations do have an ability to have mortgage insurance waived with as little as a 5% or 10% deposit. With casual income, the lenders are usually after 6 months in role prior to accepting the income. Feel free to reach out with us here if you'd like to discuss further: www.huntergalloway.com.au/contact/
@@MortgageBrokerAustralia thanks man. In the market to buy my first home and wanting to know how the actual loan process works when it comes to buying either a house and land package or land first then picking a builder for a house. Sometimes that can happen independently, so wondering how that would work in terms of the "loan"
Whether or not you can afford to buy a home depends on a variety of factors, not just your income. Factors such as your current savings, your existing debt, the size of your deposit, your other financial obligations, and interest rates all play a part in determining how much you can afford to borrow. Here are a few things to consider: Deposit: Under the First Home Loan Deposit Scheme (FHLDS) in Australia, eligible first home buyers can purchase a home with as little as a 5% deposit. For a $500k property, this would mean saving up $25k. However, keep in mind that the less you put down, the more you'll need to borrow, and the larger your mortgage payments will be. Mortgage Repayments: When you take out a mortgage, you agree to pay it back with interest over a certain period, usually 25-30 years. The larger your loan, the larger your repayments will be. Income: Lenders typically use an income-based rule of thumb to determine how much you can borrow. Generally, they won't let your total monthly debts (including your mortgage) exceed around 36% of your gross monthly income. If you're making $30-40k per year, your gross monthly income is $2,500 to $3,333. So you'd be able to afford total monthly debts (including mortgage, credit cards, student loans, etc.) of around $900 to $1,200. Interest Rates: The lower the interest rate, the less you'll pay over the life of the loan. However, even small changes in the interest rate can have a big impact on your monthly payments. Given these factors, a $500k+ home might be a stretch on a $30-40k annual income, even with the FHLDS. It would be best to consult with a financial advisor or a mortgage professional to discuss your particular situation.
Thanks for watching Doot Guy, confirming the banks required approximately 8-10% plus any costs such as stamp duty (calculate stamp duty and government costs here: www.huntergalloway.com.au/stamp-duty-calculator-queensland/). This applies right around Australia including Sydney.
Sure can Audrey, you can make it an investment property anytime you like in the future. The only thing you'd need to be careful of is that you'd lived in the property for the time required for any grants or consessions. e.g. 6 or 12 months in most cases
Thanks Danella, great question. We also have government schemes that allow LMI waivers plus some lenders will also look at LMI waivers for first home owners too. Also, some occupations do have an ability to have mortgage insurance waived with as little as a 5% or 10% deposit. With casual income, the lenders are usually after 6 months in role prior to accepting the income. Feel free to reach out with us here if you'd like to discuss further: www.huntergalloway.com.au/contact/
Question: I am about to go to the market for my first home, but was wondering with 100k deposit, can you purchase a multiple homes (one for living and the rest for investment) with one home loan? If yes, how can be done, knowing that purchasing investment property requires 20% deposit and purchasing a home to live in requires 5% to 20%? Can you please assist?
Thanks Peemun, each purchase would be set up separately. Effectively you'd be able to lend up to 95% on the home to live in and the investments up to 90%
What happens to the stamp duty if the buyer changes their mind and rent the house out. I know fhb monies have to be paid back if u don't live in the house for 6 months but couldn't find any info on stamp duty
They'd need to adjust the stamp duty payment to be in line with the cost of investment stamp duty. This would be sorted by your solicitor or conveyancer
@@MortgageBrokerAustralia thanks. I think I got the answer. It wasn't as clear as the first home grant but residency is treated the same, ie in many state you need to stay in the house for 6 months of the 12 months of purchase. Not sure what happens if that is breached or circumstances change but I just wanted to know about that residence requirement.
Hi Zylice. There is a nationwide limit, not a state-by-state limit. This means the limit of 35,000 (updated in 2023) places for first-time homebuyers applies to all of Australia, not just New South Wales. Please note that the Home Guarantee Scheme (previously the First Home Deposit Scheme) details, such as eligibility requirements and the number of allocated places, have been updated. Therefore, I would recommend getting in touch with us if you'd like to discuss further: www.huntergalloway.com.au/contact/
Hi guys, quick question I've just had a baby, receiving parental leave pay but not going back to my previous job after parental pay ends. Would a mortgage broker consider a $300,000 loan for my partner and I considering we are both only living off one income of just under $50,000 a year? I heard somewhere that parental leave pay is considered income but not hoping on that
Thanks for your question Bleep, unfortunately the banks don't take parental leave income in the assessment. They would take the return to work income for your role if you were returning that job. Borrowing might be a challenge without the return to work from your existing role.
So I put a 10% dep on a brand new unit off the plan to live in when I signed the contract .. building should be ready in June 2022.. I know the stamp is waived as it is my first property I am buying.. and I believe I entitled to the 15K FHOG. Will I need more dep so I don't pay LMI or is it best to have the 20% dep. Also when would you recommend me contacting you for a loan, should I wait a month before build is expected to be completed or earlier. I am on The Gold Coast and the property is in Robina.
Thank for watching Dayv, great question. Would be best to start the process 1 - 2 months prior to settlement. With regards to the LMI, the New Home Guarantee (www.nhfic.gov.au/what-we-do/support-to-buy-a-home/new-home-guarantee/) is also an option to look at waiving mortgage insurance plus there are some lenders that also offer LMI waives with 15% deposit. However, feel free to reach out once ready and we can look at the options available for you: www.huntergalloway.com.au/contact/
@@MortgageBrokerAustralia okay awesome thank you.. I will wait until April to contact you.. meanwhile I will just keep saving.. I now have a total of 20% which I guess will be better in the long run as I don't need to borrow as much
Thank you for this video. Me and my wife both have decent wages (250K plus annually) and we have over 200K saved for deposit. We are looking for our first home but the more we learn, the more confused we get. We have been told by our bank that first home buyer's can't buy an auction home. Is that correct? Also, for some reason we are not eligible for first home grant because of our income. I am not sure if its correct?
Thanks for your comment, you and your wife have a good income and have saved a significant amount for a deposit. It's important to note that the rules and eligibility criteria for first-home buyers can vary depending on the state and territory you're buying in, so it's always best to check with your local government or reach out with us where we can assist: www.huntergalloway.com.au/contact/. Regarding buying at an auction, typically, the bank may have a policy that they do not finance the purchase of a property bought at auction as it is considered a higher risk transaction. However, it is not the case for all the banks and it's worth touching base with us where we can review your situation and even get you auction ready! Also, regarding the first home grant, the criteria and income limits vary depending on the state and territory you're buying in.
Hello, thank you for your vidéo I still have one question, about the deposit. When do we pay the deposit? On the offer form they are asking how much deposit are we giving. And when should we proceed the deposit payment?
Great question, typically there is an initial deposit when you sign the contract, followed by a balance of deposit once the loan is approved and then the remainder of your deposit is paid on the settlement day.
Thanks for the video guys, just wondering what happens if the pre approval expires, does that deter the bank giving you a loan later on, does it affect your credit rating etc?
If your pre-approval for a mortgage expires, it does not necessarily mean that the bank will not give you a loan later on or that it will have a negative impact on your credit rating. However, it is important to keep in mind that the pre-approval is valid for a certain period of time, usually between 90 to 180 days depending on the lender. Once that time period has passed, the lender will need to reassess your financial situation and creditworthiness to determine whether you still qualify for a mortgage. If your pre-approval for a mortgage expires, it is important to speak with your mortgage broker or feel free to reach out with us where we can help you understand your options and to determine whether you still qualify for a mortgage.
My partner and I are looking to buy our first home, around $350,000/$400,000. Would a $20,000 deposit be enough, along with securing a 1st time buyers grant?
Hi. I am an American thinking about buying in Australia. Is it true that a foreigner cannot buy a house that is already existing? I watched a video and the person said that a foreigner must buy a lot and build a new home. Is that true?? I would like to buy a home to spend part of the year in Australia but I am not looking to rent it at all. Is this a possibility?? I liked the video it was very informative and thank you in advance.
Thanks for watching Lou, this would be determined by the foreign investment review board when buying property in australia. Please check out: firb.gov.au/about-firb/publications/insights-foreign-purchases-and-sales-residential-real-estate-2018-19
@@loua1765 yes it has to be a new dwelling for property investment, you can buy an existent dwelling if you are going to live in there and you are australian resident no tourist (student, working holiday visa, etc) dont forget about stamp duty you will pay higher that australians, the percentage is depending which state are you buying
Great video, lads! I have a quick question though. When you make an formal offer on a property, do you need to specify that the offer is subject to the findings of the building and pest inspection?
Thanks Luwi, this would be part of the clauses you have in the contract of sale. Always best to get your solicitor to review the contract prior to signing to make sure the right clauses are added to the contract of sale.
Quick question , can I get a home loan if I have the deposit $50,000 for say $550,000 if I’m on a carer payment ? Is there anyone out there who would accept me ? Thankyou
That's a great question, the bank will need to complete an assessment based on your income to determine borrowing power. It is possible to get a loan, but would also come down to the capacity assessment the banks use.
When/how does the pest and house inspection done incase the property is being sold at an auction? Or is this information already part of any documents for the property in an auction?
Hey guys. I'm based in Brisbane living in my parents "investment" property. Looking into a favourable purchase at the beginning of next financial year. Do you have any information on this ?
Thanks for watching Matt, nothing online unfortunately. However, would be happy to discuss and run you through the details. Feel free to reach out when ready www.huntergalloway.com.au/contact/
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Excellent video. Need more video like this Guys.
Thanks for watching!
This has been very helpful information. Thanks for the info
Appreciated
Good video. Well done guys.
Thank you! 👍
hi great video , any tips on buying a home to upgrade for more space , then renting the first property out that has equity built up, which can be used as a deposit for new purchase ?
Here are some tips for upgrading to a larger home and renting out your current property:
Assess Your Equity: Determine the equity in your current home. This can be used as a deposit for your new purchase. A professional valuation can help you understand the exact amount.
Refinance Your Loan: Consider refinancing your existing loan to access the equity. This can provide you with the funds needed for the deposit on your new home.
Rental Income Potential: Research rental income potential for your current property. This will help you understand the financial benefits and manage your budget.
Feel free to reach out if you have more questions or need further assistance! 🏡😊
Good video guys very helpful 😀
Glad it was helpful!
All well and good but doesn’t quite work in this market. Before you can inspect the property the property is under offer,
Thanks for sharing Bianca
Wait.... The 8-10% deposit thing. Don't we have to pay LMI because of that? I've heard that I need to be with the same employer for at least 6 months to qualify a first buyer home loan. And if I'm casual, it has to be almost the same hours every week. Is that true? Thank you!
Thanks Nadia, great question. We also have government schemes that allow LMI waivers plus some lenders will also look at LMI waivers for first home owners too. Also, some occupations do have an ability to have mortgage insurance waived with as little as a 5% or 10% deposit. With casual income, the lenders are usually after 6 months in role prior to accepting the income. Feel free to reach out with us here if you'd like to discuss further: www.huntergalloway.com.au/contact/
no guide on brand new homes?
Thanks for the suggestion Ill look to do one in the next few months!!
@@MortgageBrokerAustralia thanks man. In the market to buy my first home and wanting to know how the actual loan process works when it comes to buying either a house and land package or land first then picking a builder for a house. Sometimes that can happen independently, so wondering how that would work in terms of the "loan"
So even with the First Homebuyer’s, 30-40k/year wouldn’t be enough to buy a home at $500k+?
Whether or not you can afford to buy a home depends on a variety of factors, not just your income. Factors such as your current savings, your existing debt, the size of your deposit, your other financial obligations, and interest rates all play a part in determining how much you can afford to borrow.
Here are a few things to consider:
Deposit: Under the First Home Loan Deposit Scheme (FHLDS) in Australia, eligible first home buyers can purchase a home with as little as a 5% deposit. For a $500k property, this would mean saving up $25k. However, keep in mind that the less you put down, the more you'll need to borrow, and the larger your mortgage payments will be.
Mortgage Repayments: When you take out a mortgage, you agree to pay it back with interest over a certain period, usually 25-30 years. The larger your loan, the larger your repayments will be.
Income: Lenders typically use an income-based rule of thumb to determine how much you can borrow. Generally, they won't let your total monthly debts (including your mortgage) exceed around 36% of your gross monthly income. If you're making $30-40k per year, your gross monthly income is $2,500 to $3,333. So you'd be able to afford total monthly debts (including mortgage, credit cards, student loans, etc.) of around $900 to $1,200.
Interest Rates: The lower the interest rate, the less you'll pay over the life of the loan. However, even small changes in the interest rate can have a big impact on your monthly payments.
Given these factors, a $500k+ home might be a stretch on a $30-40k annual income, even with the FHLDS. It would be best to consult with a financial advisor or a mortgage professional to discuss your particular situation.
Does the 8-10% first home buyer. Apply to Sydney ?
Thanks for watching Doot Guy, confirming the banks required approximately 8-10% plus any costs such as stamp duty (calculate stamp duty and government costs here: www.huntergalloway.com.au/stamp-duty-calculator-queensland/). This applies right around Australia including Sydney.
How come they don't have the 1st home buyers grant anymore?
It's still around, however, for brand new properties only.
Can you still apply to buy a house for living in if a couple years later you decide to rent it out?
Sure can Audrey, you can make it an investment property anytime you like in the future. The only thing you'd need to be careful of is that you'd lived in the property for the time required for any grants or consessions. e.g. 6 or 12 months in most cases
I thought that we always needed 20% deposit to buy a first home. Is it really true that only 8-10% deposit is require without having to pay for LMI?
Thanks Danella, great question. We also have government schemes that allow LMI waivers plus some lenders will also look at LMI waivers for first home owners too. Also, some occupations do have an ability to have mortgage insurance waived with as little as a 5% or 10% deposit. With casual income, the lenders are usually after 6 months in role prior to accepting the income. Feel free to reach out with us here if you'd like to discuss further: www.huntergalloway.com.au/contact/
I had the same question and not sure I understand the answer given.
Question: I am about to go to the market for my first home, but was wondering with 100k deposit, can you purchase a multiple homes (one for living and the rest for investment) with one home loan? If yes, how can be done, knowing that purchasing investment property requires 20% deposit and purchasing a home to live in requires 5% to 20%? Can you please assist?
Thanks Peemun, each purchase would be set up separately. Effectively you'd be able to lend up to 95% on the home to live in and the investments up to 90%
What happens to the stamp duty if the buyer changes their mind and rent the house out. I know fhb monies have to be paid back if u don't live in the house for 6 months but couldn't find any info on stamp duty
They'd need to adjust the stamp duty payment to be in line with the cost of investment stamp duty. This would be sorted by your solicitor or conveyancer
@@MortgageBrokerAustralia thanks. I think I got the answer. It wasn't as clear as the first home grant but residency is treated the same, ie in many state you need to stay in the house for 6 months of the 12 months of purchase. Not sure what happens if that is breached or circumstances change but I just wanted to know about that residence requirement.
Is there any special offers,/plans for RN, health care workers?
Hi Kiru. There sure are! Feel free to reach out with us and check out ruclips.net/video/Eif1lWP_jDw/видео.html
Does the 10,000 limit for the First Home Deposit Scheme apply to NSW as well?
Hi Zylice. There is a nationwide limit, not a state-by-state limit. This means the limit of 35,000 (updated in 2023) places for first-time homebuyers applies to all of Australia, not just New South Wales.
Please note that the Home Guarantee Scheme (previously the First Home Deposit Scheme) details, such as eligibility requirements and the number of allocated places, have been updated. Therefore, I would recommend getting in touch with us if you'd like to discuss further: www.huntergalloway.com.au/contact/
@6:10 Answer = Mortgage broker. Banks will charge you loyalty rate, e.g give you the worse rate because you have already committed to them.
Thanks for watching!
Hi guys, quick question I've just had a baby, receiving parental leave pay but not going back to my previous job after parental pay ends. Would a mortgage broker consider a $300,000 loan for my partner and I considering we are both only living off one income of just under $50,000 a year? I heard somewhere that parental leave pay is considered income but not hoping on that
Thanks for your question Bleep, unfortunately the banks don't take parental leave income in the assessment. They would take the return to work income for your role if you were returning that job. Borrowing might be a challenge without the return to work from your existing role.
Thanks guys. We have a 20% deposit hoping to have at least $60,000 saved before applying.
So I put a 10% dep on a brand new unit off the plan to live in when I signed the contract .. building should be ready in June 2022.. I know the stamp is waived as it is my first property I am buying.. and I believe I entitled to the 15K FHOG. Will I need more dep so I don't pay LMI or is it best to have the 20% dep.
Also when would you recommend me contacting you for a loan, should I wait a month before build is expected to be completed or earlier. I am on The Gold Coast and the property is in Robina.
Thank for watching Dayv, great question. Would be best to start the process 1 - 2 months prior to settlement. With regards to the LMI, the New Home Guarantee (www.nhfic.gov.au/what-we-do/support-to-buy-a-home/new-home-guarantee/) is also an option to look at waiving mortgage insurance plus there are some lenders that also offer LMI waives with 15% deposit. However, feel free to reach out once ready and we can look at the options available for you: www.huntergalloway.com.au/contact/
@@MortgageBrokerAustralia okay awesome thank you.. I will wait until April to contact you.. meanwhile I will just keep saving.. I now have a total of 20% which I guess will be better in the long run as I don't need to borrow as much
I can't find information on buying a house full in upfront. no deposit or lenders, just on card. How do i do that?
Thanks for watching
Thank you for this video. Me and my wife both have decent wages (250K plus annually) and we have over 200K saved for deposit. We are looking for our first home but the more we learn, the more confused we get. We have been told by our bank that first home buyer's can't buy an auction home. Is that correct? Also, for some reason we are not eligible for first home grant because of our income. I am not sure if its correct?
Thanks for your comment, you and your wife have a good income and have saved a significant amount for a deposit. It's important to note that the rules and eligibility criteria for first-home buyers can vary depending on the state and territory you're buying in, so it's always best to check with your local government or reach out with us where we can assist: www.huntergalloway.com.au/contact/.
Regarding buying at an auction, typically, the bank may have a policy that they do not finance the purchase of a property bought at auction as it is considered a higher risk transaction. However, it is not the case for all the banks and it's worth touching base with us where we can review your situation and even get you auction ready!
Also, regarding the first home grant, the criteria and income limits vary depending on the state and territory you're buying in.
Hello, thank you for your vidéo I still have one question, about the deposit.
When do we pay the deposit? On the offer form they are asking how much deposit are we giving. And when should we proceed the deposit payment?
Great question, typically there is an initial deposit when you sign the contract, followed by a balance of deposit once the loan is approved and then the remainder of your deposit is paid on the settlement day.
Thanks for the video guys, just wondering what happens if the pre approval expires, does that deter the bank giving you a loan later on, does it affect your credit rating etc?
If your pre-approval for a mortgage expires, it does not necessarily mean that the bank will not give you a loan later on or that it will have a negative impact on your credit rating. However, it is important to keep in mind that the pre-approval is valid for a certain period of time, usually between 90 to 180 days depending on the lender. Once that time period has passed, the lender will need to reassess your financial situation and creditworthiness to determine whether you still qualify for a mortgage.
If your pre-approval for a mortgage expires, it is important to speak with your mortgage broker or feel free to reach out with us where we can help you understand your options and to determine whether you still qualify for a mortgage.
Hi do you have to be a permanent resident of Australia yo buy a home? (Kiwi)
Thanks Jacq, not at all.
I am a PhD student in Australia is I buy any property in Australia PhD visa is work visa.
8% deposit plus stamp duty right?
That's right!
Do you know whether KiwiSaver can be used to purchase a first home in Australia once it’s transferred over to a superfund scheme in Aus?
Thanks Ferila, I don't believe so I'm afraid.
My partner and I are looking to buy our first home, around $350,000/$400,000. Would a $20,000 deposit be enough, along with securing a 1st time buyers grant?
Thanks Chris and Shan, this is something the is possible for sure.
Whether student visa holder will get mortgage in Brisbane?
Great question and is a challenge, however, if this is a joint application with a PR or Citizen, then it can be done
Great video guys! Quick Q: do people usually arrange building and pest inspection for apartment units as well? Thanks!
Thanks Darren, it's generally a good idea to do for apartments too
Very detailed video: Question: Do you need to organise/hire your own solicitor to deal with the legal side of things? How to find those solicitors?
Yeah you do have a look online or google check out their reviews
Good to know
Thanks for watching Dani!
This video is a month late.
12:53 is exactly what happened to me :/
Thanks for sharing your story Henry!
Hi. I am an American thinking about buying in Australia. Is it true that a foreigner cannot buy a house that is already existing? I watched a video and the person said that a foreigner must buy a lot and build a new home. Is that true?? I would like to buy a home to spend part of the year in Australia but I am not looking to rent it at all. Is this a possibility?? I liked the video it was very informative and thank you in advance.
Thanks for watching Lou, this would be determined by the foreign investment review board when buying property in australia. Please check out:
firb.gov.au/about-firb/publications/insights-foreign-purchases-and-sales-residential-real-estate-2018-19
@@MortgageBrokerAustralia Thanks for the reply. These documents are too confusing. One page says "yes I can" and the other says "no". Don't you know?
@@loua1765 yes it has to be a new dwelling for property investment, you can buy an existent dwelling if you are going to live in there and you are australian resident no tourist (student, working holiday visa, etc) dont forget about stamp duty you will pay higher that australians, the percentage is depending which state are you buying
20% boys get with the times
Thanks for watching Aussie, still plenty of options with less than 20% deposit as well :)
Great video, lads! I have a quick question though. When you make an formal offer on a property, do you need to specify that the offer is subject to the findings of the building and pest inspection?
Thanks Luwi, this would be part of the clauses you have in the contract of sale. Always best to get your solicitor to review the contract prior to signing to make sure the right clauses are added to the contract of sale.
Quick question , can I get a home loan if I have the deposit $50,000 for say $550,000 if I’m on a carer payment ? Is there anyone out there who would accept me ? Thankyou
That's a great question, the bank will need to complete an assessment based on your income to determine borrowing power. It is possible to get a loan, but would also come down to the capacity assessment the banks use.
Dear lord, please fix your audio 😂 thanks for the info though fellas
Thanks Peter, appreciate the feedback
When/how does the pest and house inspection done incase the property is being sold at an auction?
Or is this information already part of any documents for the property in an auction?
If purchasing at auction, you'd need to have this completed prior to the auction
It’s not f 2024 video😅
Hey guys. I'm based in Brisbane living in my parents "investment" property. Looking into a favourable purchase at the beginning of next financial year.
Do you have any information on this ?
Thanks for watching Matt, nothing online unfortunately. However, would be happy to discuss and run you through the details. Feel free to reach out when ready www.huntergalloway.com.au/contact/
Microburbs hasnt been updated since 2016 surely your advice isn't outdated by 6 years. Is this a recycled video?
Thanks for the feedback Harry, certainly not. Feel free to check out www.realestate.com.au/neighbourhoods/ which might help too.
Property sprukers are fast disappearing in this deflating market. What are they going to do now! Lol
Thanks for watching J J