If you’re unsure about how to start the process, it’s best to speak to a Resolve Finance broker as soon as possible. We’ll work with you to understand your situation, to establish your borrowing capacity and home loan requirements. Getting this advice upfront means you can choose your new home with a clear budget and confidence in your financial position.
My first home
Where do I start?
How do I save for a deposit?
Saving for a deposit can be a tough but very rewarding process. You might choose to put portion a percentage of your income into a separate account, and save any lump sum benefits on top of this, but there are numerous ways to save . If you’re having trouble saving for a deposit, why not talk to one of our My Home Plan Finance Coaches. We’ll work with you to set a budget, and provide you with guidance and support to help you reach your savings goals.
How do I choose a lender?
At first glance, almost every lender seems seem to have great offers. But when you sit down to really compare home loans, things can get confusing very quickly. That’s where your Resolve Finance broker comes in. We know that the advertised interest rate isn’t always the best indicator of whether a loan is right for you, because set up and exit fees, ongoing fees and other additional product features and conditions can make a big difference. So speak to an expert, and let us find the best solution for you.
How do I know the type of finance I qualify for?
Lenders base their approval process on a number of complex factors, and they all have varying policies on their home loan That’s why it’s so important to have the knowledge and experience of a Resolve Finance broker on your side. We’ll help you work out which type of home loan is best for you, based on your individual situation.
How much can I borrow and what will my repayments be?
Lenders take many factors into account when assessing your loan application, including your income and any debts you may have such as car or personal loans, and credit cards. They will also consider your situation, your relationship status and whether you have any dependent children. For a guide estimate of your borrowing capacity, try our borrowing capacity calculator, our repayment calculator or contact one of our team.
What do you mean by ‘Genuine Savings?'
Most lenders require you to show that you’ve saved at least 5% of your home loan deposit as part of your application, to prove your ability to save over a period of time. With most lenders, this means the money for your deposit has to have been held in your bank account, untouched, for a minimum of three months to be considered ‘Genuine Savings’.
Some examples of the types of genuine savings a lender may consider include:
- A savings pattern where money is added to an account regulalry
- Sale of a property resulting in a positive asset position
- Cash – where you’ve been paid an amount of money as a lump sum
There are a number of types of savings that most lenders do not consider ‘genuine’. These include:
- The First Home Owners Grant
- Borrowed Funds – for example, using a personal loan to provide cash for your deposit
- A gift of funds, where someone (such as your parents) gives you money to use for your deposit
- A tax return
At Resolve Finance, we understand that you might not always be able to demonstrate genuine savings. That’s why we work with you and our extensive panel of lenders to find a home loan that’s right for you. We’ve even developed our own range of home loan products, designed to help you get into your home sooner! So speak to one of our brokers today to see what we can do for you.
What is stamp duty?
Stamp duty is the tax you pay on the sale of a property to cover the legal costs of the transaction. It can vary based on which state you’re in. All transfers of land or sales of property attract stamp duty, however, some exemption or concessions may apply within certain states.
Some of the concessions that are available are for:
- First home buyers
- Principle place of residence
- Off-the-plan sales
- Deceased estates
- Family farms
- Young farmers
More information can be found on the state or territory government websites
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) is a type of insurance that protects the lender if the borrower can’t meet their loan repayments.
Lenders generally require a borrower to have at least a 20% deposit. However by charging Lenders Mortgage Insurance, lenders are able to offer lower deposit home loans. Depending on your lender’s requirements, Lenders Mortgage Insurance allows you to borrow up to 95% of the purchase price of your home, lowering the deposit amount required to as little as 5%. If you are required to pay LMI, you have the option of paying it upfront, or adding it to your home loan, which is known as capitalising.
LMI helps thousands of people each year to achieve home ownership by offering options to those with a lower loan deposit amount. Many people prefer to pay the LMI premium rather than save for a few more years.
Who is involved in the finance process?
Depending on whether you’re buying an established home or purchasing a new home, a number of people can be involved in the finance process. This may include:
- Your Resolve Finance broker
- Your lender
- Your builder, land agent or real estate agent
- Your conveyancer
One of the main benefits of using Resolve Finance is that you don’t need to worry about this – we do the hard work for you! Your Resolve Finance broker will deal with these parties wherever they can to make the process is as easy as possible for you, so you can enjoy your new home sooner.
What costs do I need to allow for?
Other than the cost of the property, there are a number of other expenses you need to allow for when purchasing a home. The costs you may need to consider include:
- Stamp Duty
- Lenders Mortgage Insurance (LMI)
- Conveyancing Fees
- Legal Fees
- Moving costs
If you’re building a new home, you may also want to consider:
- Rates and taxes
- Rent while building
- Variations to your building contract
- Prestart allowances
- Expenses when you move in
For a more comprehensive look at the costs that may be involved in purchasing a home, please download our fact sheet or contact us to discuss your situation.
Why should I use a Resolve Finance Mortgage Broker?
As exciting and challenging as buying a new home is, it’s essential to have a finance expert in your corner. At Resolve Finance, our experienced team of brokers will guide you every step of the way to make the process as easy as possible.
Your Resolve Finance broker will:
- Look at your current individual situation and requirements
- Find the right loan for you
- Advise you of any grants or rebates you are entitled to
- Liaise with your lender, builder or agent and settlement agent
- Provide support and guidance throughout your home ownership journey
Why should I use a Resolve Finance Home Loan?
At Resolve Finance, we have access to a suite of both niche and exclusive loans to help get first homeowners into their new home sooner. This includes:
- Low deposit Home Loans
- Guarantor Home Loans and Parent Assist*
- Construction Home Loans
- Keystart Home Loans
- My Home Plan* – our very own specialised savings program
It makes sense to trust your home loan to a team who have sourced and developed products specifically for you.