The deposit required depends on the type of loan facility you choose. A deposit for a home is usually between 5% – 10% of the purchase price or valuation (whichever is the lesser) of the property, which you pay when signing a Contract of Sale.

Most lenders offer flexible repayment options to suit your needs. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and duration off your loan.

New home loan products are emerging rapidly in the market. Mortgage Consultants at PJ Home Loans can help you find a loan and professionally package it so that it suits your particular needs.

The length of time between exchange of contracts and settlement varies. It normally ranges from four to six weeks. Settlement time is normally dictated by the seller and the lender, but is negotiated with the buyer.

There are a number of fees involved when buying a property.  To avoid any surprises, the list below sets out all of the usual costs:

• Stamp Duty – Stamp duty is a government tax that is levied on the purchase price of your property. Stamp duty rates vary between state and territory governments and also depend on the value of your property.
• Mortgage Insurance costs – You need to pay Lender Mortgage Insurance, only if you borrow more than 80% of the purchase price of the property.
• Lender costs – This cost is based on the lenders you choose for your home loan. Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. Our mortgage consultant can help you to select the right lender and home loan product based on your needs.
• Conveyancing/Legal fees – Conveyancing is the legal process by which ownership of real estate is transferred from one person to another. These fees cover all the legal rigour around your property purchase.
• Ongoing costs – You will need to include council and water rates along with regular loan repayments. We advise to consider taking building insurance and contents insurance which will protect you if the worst happens.
• Building inspection – Your Contract of Sale should be subject to the building inspection, so if there are any structural problems, you have the flexibility to withdraw from the purchase without any significant financial penalties.

Your home loan interest is calculated on the daily outstanding balance of your loan. Making extra repayments or depositing additional funds into your home loan account will reduce the interest payable significantly. Redraw facility in your home loan will help you to redraw these funds as and when you need them.

You are eligible for the first home owners only if either you or your spouse haven’t owned a home /claimed the grant previously. For more information on the first homeowners grant visit www.firsthome.gov.au