Buying your first home should be an amazing and life changing experience. However many people, without the right help, find it very stressful, confusing and overwhelming. With Money Advisers you can make it the most exciting time of your life – the way we think it should be!

What about a deposit, does it have to be proven savings?

There are a variety of options available, here’s a few ways of how to come up with your deposit.

• Save for your deposit yourself (traditional method)
• Use equity from another property as security (such as your parents house)
• Use a Family Pledge from direct family or relatives
• Have money gifted to you from family or friend

Look at a 100% or 105% loan if you do not have access to any of these. You may not need a deposit if you have a good income.

First Home Buyer's Grant

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. Under the scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.

For more info visit http://www.firsthome.gov.au/

No Deposit Loans

100% Home and Investment loans

Whether you've started getting your deposit together, or you need to borrow the full purchase price, there is a No Deposit Home Loan to allow you to make the dream of owning your own home a reality.

No Deposit, but want a lower interest rate?

Choose the No Deposit Home Loan - Loan Extension Fee option where you can borrow up to 100% of the purchase price or valuation (whichever is lower) at a competitive interest rate. You can build or buy your own home sooner by paying the upfront Loan Extension Fee instead of a Lenders Mortgage Insurance premium.

No Deposit, but need flexibility?

Choose the No Deposit Home Loan - Flexible Deposit option because you can use funds for different loan purposes - refinancing your existing loan at a competitive rate, consolidating all your debts into one loan, purchasing vacant land, or for investment purposes – by borrowing up to 100% of the purchase price or valuation (whichever is lower). Lender’s Mortgage Insurance may be payable.

No Deposit or Savings but ready to buy quickly?

Choose the No Deposit Home Loan - Quick Start option and you could be on your way sooner. There is no upfront Loan Extension fee or Lender's Mortgage Insurance payable with this type of loan, so your upfront costs are reduced. However, you will pay a higher interest rate, but you can still borrow up to 100% of the purchase price or valuation (whichever is lower) of your new home. A great option to break into the property market.
With the available lending and credit market of today, there are many people that have previous or current credit problems. We understand that this happens. Our non-conforming lenders, have relaxed and expanded their lending guidelines to help people with credit problems and defaults get suitable finance to better their situation.

You may have been affected by one of the following circumstances which may have contributed to a credit default or negative credit report:

• Loss of employment,
• Marriage break-up,
• Injury preventing you from working,
• Bad debt,
• Poor credit management etc.

The aim is to allow you to have a second, or third chance and allow you to get on top of your financial situation. These lenders will charge higher fees and rates, due to the risk factor, however we will work with you to map out a plan, to get you back into a main stream lender within an agreed time frame.

Construction Loans

Construction loans are available for first home buyers to build a new home, current home owners to make improvements, extensions, or build new, or investors wanting to build.

The first step in obtaining a construction loan, is to arrange a finance pre-approval. Then you can negotiate with your preferred builder for the house design you require. You then need to provide a contract for the purchase of the vacant land, and a fixed price building contract for the construction. The builder will usually provide you with the council approved plans, and will determine the full cost to complete. During the time you are building, the lender will inspect the site prior to making payments to the builder on your behalf.

You pay interest only on the amount drawn upon and paid to the builder, at each step of the construction process. On the completion of construction, when the builder has been fully paid, your loan will then revert to your standard monthly payments.

Self Employed / No Doc

At Money Advisers, we understand not everyone is able to meet traditional banking guidelines. What if you are self employed and don't have two years financials? Or what if your remuneration does not involve payslips and group certificates? What if you are an investor and earn money from the stock market or property development?

We can help you with self employed, Lo Doc and No Doc homeloans! You don't need to provide full financials, however you will need to Self Certify your income. We will work through repayments and loan plans very carefully to ensure you understand your obligations.

Traditionally banks offer a maximum lend of 80% for low document loans.  Loans with LVRs higher than 80% are available, however they typically go to non conforming and have slightly higher interest rates and LMI charges.

Equity Finance Mortgage

An Equity Finance Mortgage (EFM) is a new type of home loan that allows shared equity in the property you purchase. It effectively boosts your potential borrowing capacity by up to 20% and the equity is shared by you and the bank. The great news is, it allows you to borrow more and buy a more expensive property, and keeps your repayments lower.

The Equity Finance Mortgage is effectively two mortgages. One traditional home loan and an EFM homeloan portion. The EFM portion, which can be up to 20 per cent of the purchase value of the home, charges you ZERO interest.  

The term of the two loans is 25 years, and at that point you pay the lender up to 40 per cent of any capital gains or 20 per cent of any capital losses on the property.

Who is eligible?

• Must be an individual or borrowing jointly with one or more individuals – cannot be company or trust
• Property must be in an acceptable location and of acceptable type
• A deposit of 5% is required for this type of loan however it can be gifted or borrowed funds.

Here’s an example:   

• Loan Needed: $380,000
• Traditional Homeloan (95% property value): $380,000
• Lenders Mortgage Insurance: $7,471
• Monthly repayment required: $2,883

Adding an EFM to make purchase more affordable

• Loan Needed: $380,000
• EFM (20% of property value): $80,000
• Traditional Homeloan (75% property value):  $300,000
• Lenders Mortgage Insurance: $4,652
• Monthly repayment required: $2,276 (This is a saving of $607 per month in repayments.)