Getting Started
The following are five important factors that need to be considered before you go out and look for your dream home.
How much can I Borrow?
In general, the Greater can lend up to 95% of the property value. This would require you to have at least 5% of the
purchase price as a deposit, preferably in genuine savings. To get a rough idea of how much you can borrow, you can visit
our Borrowing Power Calculator. Please keep in mind
that this is a guide only an does not constitute a loan approval.
Do I need to have a Deposit?
It is preferred that at least 5% of the purchase price is in the form of genuine savings, accumulated or held
over a period of 3-6 months.
Genuine savings can be made up from funds you have saved up or funds held in an account in your name for 3-6 months.
An unconditional gift can also be used subject to certain conditions. Share holdings or managed funds are also acceptable
if held for this period.
Any time you borrow more than 80% of the value of the property, you will be required to pay a one-off premium
for Lender's Mortgage Insurance (LMI). It insures the lender if it suffers a loss when security property is sold and there
are insufficient funds to repay the loan.
All financial institutions use this or similar insurance protection on lower deposit home loans. The premium can be
added to your loan in most cases so you do not need to find the extra funds for this premium, but you do repay it to us as
part of your loan.
Other Costs
Professional legal fees, property scearches, legal disbursements and house insurance will all vary depending on your
circumstances and the property you are purchasing.
We suggest that you allow a combined amount of $2,500 to cover these costs.
Savings Goals
First of all you need to set a savings goal to achieve the total funds you will need to buy your home.
Ideally, putting aside each month the equivalent of the new loan repayments, after taking out what you may be paying in
rent at present, would get you accustomed to your proposed commitments and will show us that you are able to meet the new
commitment comfortably.
To assist you there is a Budget Planner and
Savings Goal Calculator available on our website.
Next: First Home Owners Grant Scheme
