Residential Home Loans
Buying your new home
At Popovich Financial Services, we understand buying a home is one of the biggest financial decisions you will make in your life. It’s an exciting time bit can also be daunting. That’s where we come in to assist. We will hold your hand throughout the entire process to ensure your home purchase is done as smoothly and as stress free as possible.
First Home Buyers
There are some very important things you need to know about buying your first home:
How Much Can you Borrow?
Before you even start looking at properties it is important to understand how much you can borrow. This varies depending on a number of factors like; how much you earn, what your living expenses/outgoings are, how much you have a deposit. We can do some basic calculations to help you understand how much you can afford to borrow.
We can also arrange for pre-approval of the loan so you can go and find a property with confidence.
Lenders Mortgage Insurance (LMI)
Depending on the individual lender’s requirements, Lenders Mortgage Insurance allows you to borrow up to 95% of the purchase price of your home, with a lower deposit than is usually required.
Traditionally, lenders require borrowers to have at least a 20% deposit. However by using Lenders Mortgage Insurance, lenders are able to offer lower deposit home loans. Lenders Mortgage Insurance protects the lender if a borrower is unable to meet their mortgage repayments and the property has to be sold.
Note: Lenders Mortgage Insurance should not be mistaken for Mortgage Protection Insurance, which covers your mortgage repayments in the event of death, sickness, unemployment or disability.
Understanding the purchasing costs
Government Fees and other associated costs:
- Transfer of Land Fee (Formerly known as Stamp Duty)
- Other Transfer Fees
- Mortgage Application Fees
- Mortgage Registration Fees
- Conveyancer/Solicitor Costs
- Lenders Mortgage Insurance (LMI)
- Property Inspection Fees (Building and Pest)
- Moving Costs
How much deposit will you need?
As a general rule, you will require a minimum of 10% of the value of the property.