Your first big investment begins here
Taking those ﬁrst steps to buying your ﬁrst home can be exciting and daunting all at once. But at Astute you have a friend in finance. We will work with you to meet your financial goals, no matter how long it takes. From understanding the costs of purchasing, saving for a deposit and making repayments, we’ll make sure you have all the information you need to be financially Astute.
We can help you realise
- How much you can borrow
- How much you will need for a deposit
- If you can purchase now or in the future
- What to expect in repayments, fees and insurance
- If you’re eligible for any grants or benefits
At Astute, we are focused on making financial decisions seem simple, by removing the jargon and teaching you about our world of finance.
Some common loan features include:
- Allowing additional repayments to be made
- Access to o– set accounts to reduce interest
- Access to redraw facility
- Ability to take repayment holidays
- The flexibility to move from a variable to fixed rate loan
Our experienced team of mortgage brokers can help you identify the features of a loan you need to best meet your goals.
What First Home Buyers really need to know
How much do you need for a deposit?
As a rough guide, aim to save 20% of the purchase price, plus enough to cover costs. If you borrow more than 80% of the purchase price, you may have to pay lenders' mortgage insurance (LMI). This is an insurance that protects the credit provider from the borrower(s) not being able to repay the loan.
How will you balance what you’re able to borrow with how much you can realistically repay?
It important from the start to only borrow what you need and can afford, careful budgeting is needed in the first stages of applying for a loan so that a projection can be made to determine your spending requirements moving into the future.
Am I eligible for the great start grant?
The Queensland First Home Owners’ Grant is a state government initiative to help first home owners to get their new first home sooner. You can buy off the plan or choose to build yourself. If you or your spouse has never owned a home before you may be entitled to a concession up to 20,000 to buy your new home.
How do Interest rates work
Depending if you apply for a fixed or variable rate on your home will depend what charge is imposed on your for borrowed money.
A Variable rate goes up and down which is at the lender's discretion so there is never any certainty, but you do have the ability to make extra repayments to pay it off quicker.
A Fixed rate is a locked interest rate where you can keep it constant for a period up to 5 years the benefits of this are you know exactly what you are going to be paying in that period, however you don't have the chance to benefit from falling interest rates and you may not be able to pay extra into your home loan.
Can you use the bank of mum and dad
For many First home buyers mum and dad play a crucial role in gathering funds to pay for their deposit. It's important to differentiate between gifting money and being an guarantor.
Gifting - Parents are able to give any sum to their children to contribute to the loan. It must be a gift not a loan with interest charged.
Guarantor - a parent becomes a guarantor to the loan, becomes a co-borrower if their child defaults on the loan, the lender could ask them to stake over the repayments.
Buying a home see all too confusing?
That's where we can help...
Let us help with kick starting your financial journey.
Let Astute Guide You
A Astute mortgage broker can take the stress and time out of you trying to shop around with your banks and other banks for the most competitive deal.
We start with preparing your budget because a home loan is a debt and many classify it as a burden the benefit of a mortgage broker is to make sure you don't overexert yourself by taking on this debt level, we go through your bank statements with a fine tooth comb to cover every expense you have we make an affordability assessment and set up a strategy for you to meet your financial goals.
As your a first home buyer you have access to a government incentives to build your first home, we guide you through the process of applying for the First home buyer grant to make sure you get the helping hand you need.
We believe the hardest part of buying your first home is saving a deposit, due to our full financial services model you have access to our financial advisers that can assist with Goals based budgeting to make your deposit bigger for greater advantages. If you can't wait and save, a close family member may be able to act as guarantor for your home loan. By using the equity in their property as security for your home, your guarantor can help you close the gap between your savings and the deposit you need.
We are you face to face source of comparing all the lenders in the market to make sure your current situation aligns with the banks lending policies. We have access to over 40 lenders and the one for you is not typically the one you do your everyday banking with. Once we have found the right deal for you, all the paperwork is done by us as we know our clients financial world in and out we can provide all this information to the bank without your running around looking for documents.
Unlike other brokers we liaise with your legal representative to make sure the transition from Prepurchase to settlement is as seamless as possible.
Lastly if your not ready to buy we can do the whole process without submitting the loan, we can do a pre approval on your current situation to determine where you stand in purchasing your first home, if your not ready we work with you to help you achieve you aussie dream.
First Home Buyer
I remember Steve and Eunice were introduced to me by Eunice’s Parents, Frank & Anna, I had been looking after the Family’s finances for many years and now it was time for Eunice and her husband Steve to purchase their first home.
Purchasing your First Home is a major step and can be quite daunting, and like all First Home Buyers Steve and Eunice were excited but had no idea where to start, what were the costs, how much deposit do they need, how much can they borrow, do they need a solicitor or a building and pest inspector, should they have a fixed or variable interest rate, or both and many other questions.
We arranged a time to meet face to face were I explained to Steve and Eunice, like I do with all clients, that we are here to hold their hand through every step of the journey and to support them in any way we can, we then went through every aspect of what they were about to encounter and that we want to make it a simple easy and supportive process.
We do this by encouraging clients to ask as many questions as possible, as I say to my clients, there is no such thing as a stupid question, I want to make sure they understand every aspect of the process, the loan itself, protecting themselves and by also introducing them to professionals that we have established relationships with, like our Financial Planning team who will assist with protecting them now that they have a home loan in case anything does go wrong, our General Insurance team to make sure when they do sign a contract they have the property and their possessions protected as quickly as possible, solicitors who will assist with the conveyancing which is very important to get right and building and pest inspectors who will inspect the property they are purchasing to identify any issues.
We then identified the type of loan facility that would best suit their needs by establishing what their current circumstances are and what plans and goals they have for the future, there is no point setting up a loan without considering what the client wants to achieve next.
The next step was to arrange a Pre-Approval, this is very important, especially for First Home Buyers as it provided Steve and Eunice with the confidence to go to the market knowing what their maximum purchase price was, it also provides better negotiating power with any potential sellers as they are already Pre Approved.
As part of the process I also provided Steve and Eunice with helpful tips in dealing with Real Estate agents and what information they would need to provide when making an offer, Steve and Eunice let me know they found this invaluable.
Steve and Eunice within a short time had found their dream home, we put them in touch with a solicitor who assisted with the conveyancing, they engaged the Building and Pest inspector we had referred them to and they also arranged their Buildings and contents Insurance through our General Insurance team.
The feedback from Steve and Eunice was that they were extremely happy with everyone that we had introduced them to, however the most important things they conveyed was not only the caring way in which we answered all their questions and nothing was ever to much trouble, but that having us assist in this area took the worry away from them as they felt they had people they could trust around them and it made the whole process so much easier and less stressful.
As we already had the Pre Approval in place it was also a much simpler process then to get their loan unconditionally approved, the bank then arranged the loan documents to be issued, these can be difficult and confusing at times and so we arranged a time to sit down and go through these with Steve and Eunice to make sure they understood what they were signing and we were also able to witness the mortgage documents for them which meant they did not have to run around and try and find a Justice of the Peace to do this for them.
Just three short weeks after they found their dream home they were moving in and we couldn’t have been happier for them especially being part of their journey into their First Home and of course we are here to help anytime in the future that they need us.
We know it's difficult to get started that's why we offer a no obligation discovery chat to help you take the first step.