This experience can be very overwhelming as there are so many different types of properties, loan products and banks to choose from – that is where She’s My Broker can help.

We can discuss with you, your current financial situation and your goals for your first property, whether it be a brand new off the plan purchase, an established house or you wish to construct your first home.  We can talk you through the complete process and review all grants and government benefits that may be available for you.

I have attached a chart below which explains the process from start to finish – if you have any questions please do not hesitate to contact us today!

Benefits for a first home buyer in Queensland:

1. Stamp Duty – discounted stamp duty for your first purchase – depending on the property price.
2. First Home Owners Grant – if you are purchasing a brand new property or constructing one which has never been lived in before – you may be eligible for the $15,000 grant which can be used as part of your deposit with your home loan.
   Find the latest first home owner information on the Queensland Government Website
3. First Home Deposit Scheme – The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to support eligible first home buyers to build or purchase a new home  sooner. Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase or build a new home with a deposit of as little as 5 per cent (lenders criteria apply).This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

Please contact me today if you would like further information regarding the government schemes available.

Saving for a house deposit and getting approved as a first-time buyer can take time. However, if a family member is willing to be your guarantor, it can help you get onto the property ladder more easily. A guarantor home loan allows family members to use their property as security. They typically need 20% to 30% equity in their home or investment property, depending on the bank. This means they offer their property as security for 20% of your new purchase.

As the homebuyer, you’re responsible for making the regular repayments on your mortgage, including interest and fees. However, if you fail to meet the loan repayments, your guarantor becomes liable to cover them.

Example of Loan Structure:

For a $500,000 property using parents’ property as security:

• $400,000 loan on the new property
• $100,000 secured against parents’ property as a second mortgage

This structure allows you to borrow 100% of the property amount, plus legal costs and bank fees.

A guarantor’s equity acts as additional collateral. This means the bank could take possession of it if you and your guarantor cannot meet repayments. Your guarantor can also choose to guarantee only a portion of the loan, releasing them from risk once that portion is repaid.

Benefits of a Guarantor Home Loan:

• Avoid paying Lenders Mortgage Insurance (LMI).
• Secure funding with a smaller deposit.
• Added reassurance to the bank that repayments will be covered.

Downsides of a Guarantor Home Loan:

• Limited lender options as some banks do not allow a second mortgage.
• Risks for the guarantor, including liability for repayments and potential impacts on their savings or home.
• Potential strain on your relationship with the guarantor.
• Negative impact on credit reports if repayments are missed.
• Guarantor may need to sell their home to repay your loan.

Contact us today to learn more about how a guarantor home loan can benefit you and your family in Brookwater.

What is an investment home loan?

An investment loan is a type of home loan that someone takes out to buy an investment property. It is a mortgage designed for those who want to buy a property and rent it out to receive income from it, but can’t afford to buy the property without a loan.

How Does an Investment Home Loan Work?

Investment home loans typically follow the same process as standard home loans. You pay a deposit, and the bank lends you the remaining amount needed to purchase the property. You then repay this loan, along with interest, in regular instalments over the loan term.

However, investment loans usually require a higher deposit and have higher interest rates compared to owner-occupied home loans. These stricter conditions are due to the perceived higher risk associated with investment properties.

Benefits of Owning an Investment Property:

• Additional Income: Rental income can provide a long-term revenue stream.
• Property Value Growth: Potential for property value appreciation over time.
• Tax Advantages: Some costs of buying and maintaining an investment property can be claimed as tax deductions.

Disadvantages of Owning an Investment Property:

• Capital Loss: Property value may decrease.
• Vacancy Risks: Periods without tenants can lead to financial strain.
• Maintenance and Expenses: Ongoing costs like repairs and council rates.

Contact us today to learn more about investment home loans and how we can help you secure an investment property in Brookwater.