The Buying Process
Once you have a list of the features you require in your first home, you should decide the areas you would like
to live in. The advantage of doing your research online is that you can get a good idea of what is available without
leaving the comfort of your own home. Some of the most commonly used websites are
www.realestate.com.au and www.domain.com.au.
Once you have found your ideal home, you need to let us know the property details. We will then send a registered
valuer out to value the property before a formal approval is granted.
Building a Home
Building your home would still give you access to all the First Home Buyer benefits from the Government, but there
are different conditions applicable when you buy land to build on.
The First Home Owner Grant (FHOG) does not get paid until the first progress payment of the construction work, so
the Grant can not be relied upon as a deposit to purchase the land.
Similarly to when you buy an existing property, you will need to have a deposit to put towards the land purchase
as well as the cost of the construction. Again, the minimum requirement is 5% of the total cost for land and
construction, with LMI being payable if you borrow more than 80% of the total cost.
It is advisable to have a larger deposit when opting to build your own home as building costs can often exceed the
initial quote you may have obtained.
We may initially approve a loan for the land only with a view to obtaining a loan approval to build at a later date.
During the progress payment stage of your loan, you will only be required to make repayments based on the amount of
the loan that has been drawn down.
Next: The Legal Process
