First Home Buyers Gold Coast | First Home Mortgage Brokers
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First Home Buyers

First Home Buyers on the Gold Coast

As a first-time home buyer on the Gold Coast, you’ve probably got a lot of questions. You’re likely a little unsure of your options. And you’re probably looking for some additional support. In fact, according to a recent survey by CoreData, a massive 71% of first home buyers are looking for more support. The same study found that almost half of first home buyers struggle with understanding how the whole home loan process works, 37% aren’t sure about what government grants they may be eligible for and 46% are uncertain how to get the best mortgage deal.

But don’t worry – Professional Lending Solutions is here to help first home owners on the Gold Coast. We’ve put together a comprehensive guide for first home owners, including answers to frequently asked questions and helpful tips for first home buyers on the Gold Coast. We’ve also provided an overview of what government grants are available for those applying for their first home mortgage on the Gold Coast.

Property Investment Gold Coast

Professional Advice for First Home Owners on the Gold Coast

Talk to an experienced professional that you can trust

First home buyers often find themselves inundated with well-meaning advice (much of it irrelevant or unhelpful). But by talking with a mortgage broker, a first home buyer is tapping into a wealth of industry experience and gaining access to home loan deals that aren’t available on the retail market. Dealing with a broker will also save you time, minimise stress and protect your credit score (which will be negatively impacted by multiple rejections). Additionally, when you deal with a mortgage broker you’re protected by ‘Best Interests Duty’, legislation that ensures a broker is always working in your best interests.

Don’t feel discouraged if you haven’t saved a 20% deposit

A 20% deposit is preferred by many lenders, but that doesn’t mean you’re locked out of the housing market if you haven’t yet saved up that much money. Get in contact with a mortgage broker to discuss what other options may be available to you. This could include using with a guarantor, applying for the First Home Loan Deposit Scheme or opting to buy a property sooner with Lender’s Mortgage Insurance (LMI).

Take action to improve your credit rating

A lot of first home buyers aren’t sure what their current credit rating looks like – so the first thing to do is find out. You can apply for a free copy of your credit report through a range of credit reporting agencies. The higher your credit score, the better your application will look to lenders. Once you’ve made sure there are no errors on your credit report (which can occasionally happen) there are steps you can take to improve your credit rating. These include paying down personal debt, paying off your credit card in full each month and making sure all of your bills are paid on time.

Make sure you allow for all associated costs

In addition to your initial deposit, there is a range of other fees that you’ll need to budget for when buying your first home. These may include a loan application fee (a one-off fee that is payable when your loan commences), Lender’s Mortgage Insurance (if your deposit is less than 20%), Government fees (such as Stamp Duty), conveyancer charges (for handling the transfer of sale), pre-purchase inspection costs (such as building or pest inspections) and moving expenses. If you want more information on the costs associated with buying your first home, then get in contact with the team at Professional Lending Solutions. We’d be happy to provide you with more detailed information on how much you should be budgeting for associated purchase costs.

What Government Assistance is available for a First-Time Home Buyer on the Gold Coast?

The Federal and Queensland Governments are currently offering a range of incentives and discounts for first-time home buyers. These include:

  • First Home Loan Deposit Scheme: As was mentioned earlier, the First Home Loan Deposit Scheme allows eligible participants to obtain a home loan with a 5% deposit, without having to pay for Lender’s Mortgage Insurance. This scheme, which launched in early 2020, accepts the first 10,000 applicants of each financial year who meet the specified criteria.
  • Queensland First Home Concession: The First Home Concession reduces the amount of stamp duty (also known as Transfer Duty) that first home buyers are required to pay. This concession is available to first home buyers who purchase a property for less than $550,000 and who meet the associated eligibility requirements.
  • Queensland First Home Owners’ Grant: The First Home Owner’s Grant is available to all Queensland first home buyers who opt to purchase or build a brand-new home. This is a $15,000 cash grant which can be used to pay for associated purchase costs or as part of your initial deposit.

Why Should Gold Coast First Home Buyers Choose Professional Lending Solutions?

The team of mortgage brokers at Professional Lending Solutions offer first home buyers a combination of industry experience, local knowledge of the property market and a commitment to always acting in the best interests of the buyer.

We’ve recently been listed as Finalists in the Better Business Awards 2021 in the categories of ‘Best Finance Broker’, ‘Best Regional Broker’, ‘Best Loan Administrator’ and ‘Best Regional Office’. These awards acknowledge that “to be an outstanding broker, it’s not just about writing volume, it’s about customer service and dedication to the clients’ best interests.” This is a statement that the team of brokers at Professional Lending Solutions wholeheartedly agree with and something we always try to demonstrate in our dealings with customers.

FAQ from First Home Buyer’s on the Gold Coast

The average house deposit is generally considered to be between 5% and 20% of the total property purchase price. The Gold Coast has a current median house price of $630,000, which would require an initial deposit of between $31,500 (5%) and $126,000 (20%). However, this amount will obviously fluctuate depending on where you’re looking to buy. For example, in Parkwood, the average cost of a 3-bedroom home is $555,000 (which would require a deposit of between $27,750 and $111,000), while in Nerrang a house of a similar size will have a median price of $477,000 (deposit of $23,850-$95,400). In Gilston the average 4-bedroom home is $658,000 (deposit of $32,900-$131,600), while in Elanora it’s $780,000 ($39,000-$156,000).

It’s also important to keep in mind that if you’re opting for a 5% deposit then you may find that there are fewer lenders who will be willing to offer you a home loan. Additionally, your interest rate may be slightly higher, since the lender is taking on a greater level of risk. A deposit that is less than 20% of the purchase price will also incur Lender’s Mortgage Insurance (LMI).

Lender’s Mortgage Insurance is a type of insurance policy that is designed to protect the lender in case you default on your home loan. Most lenders will stipulate the need for Lender’s Mortgage Insurance if your deposit is less than 20%. The cost of this policy can add thousands of dollars to the total of your mortgage, so it’s understandable that many first home buyers are looking for ways to avoid it. One possible method is to have someone act as a guarantor on your home loan. Eligible applicants can also apply for the First Home Loan Deposit Scheme. This scheme allows participants to apply for a home loan with a 5% deposit because the National Housing Finance and Investment Corporation (NHFIC) essentially acts as a guarantor on the remaining 15%.

A guarantor is someone (usually a close relative) who is willing to use the equity in their own home as security against your home loan. With a guarantor, a first home buyer can borrow up to 95% of the property purchase price without having to pay for Lender’s Mortgage Insurance. For this reason, a guarantor can be a great option for first home buyers who haven’t yet saved a 20% deposit and who aren’t eligible for the First Home Loan Deposit Scheme.

The amount you can afford to borrow will vary depending on your current assets, your employment status, how much you typically earn, what your credit record looks like and how much personal debt you currently have. To get an estimate of how much you could afford to borrow, try the Professional Lending Solutions free online ‘Borrowing Power Calculator’, or make an appointment to speak with one of our brokers for a more detailed assessment.

A fixed interest rate refers to a home loan where the amount of interest you are charged doesn’t change, whereas a variable interest rate will move up or down in response to adjustments in the official cash rate. There are pros and cons to choosing either a fixed interest rate or a variable interest rate.

For example, with a variable interest rate, you will often have more flexibility when it comes to making additional repayments or accessing redraw. But with a variable interest rate, there is no guarantee that your minimum monthly mortgage repayments will stay the same, which can be a deterrent for those who operate on a fixed budget.

In contrast, a fixed rate allows you to lock in a set figure for a predetermined amount of time (usually between 1 and 5 years). Because interest rates are currently at record lows, a lot of first-time home buyers on the Gold Coast are opting for a fixed rate. To find out more about whether you should opt for a fixed or variable interest rate, talk to an experienced Gold Coast mortgage broker.

If you’re one of the 47% of first home buyers who is unsure how to find the best deal, then there’s no need to panic – that’s what mortgage brokers are for. At Professional Lending Solutions, our brokers always start by asking questions: about you, your current circumstances and your future financial goals. Why do we ask so many questions? Because this will help us to determine which mortgage lenders have the best home loan deals to suit your needs. There is no ‘best home loan deal’ that will be right for every first-time home buyer. That’s why we compare hundreds of home loan products from a wide range of lenders – we’re intent on finding the best mortgage option for your specific circumstances.

Testimonials from First Home Buyer’s on the Gold Coast

Vashti Harper
Vashti Harper
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Phil and his team went above and beyond to help us purchase the property that we loved! As first home buyers we knew nothing. Phil was patient, gave us plenty [of] options and was thorough in his explanations. We were so thankful to have someone on our side – who only had our best interests at heart. I have no hesitation in recommending Phil and the Bundall Professional Lending Solutions team, the quality of service is second to none.
Paul Carey
Paul Carey
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Phil and his team made purchasing our first home easy and stress free! He was [always] available to answer any of our questions. I highly recommend Phill and the Bundall Professional Lending Solutions team!
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