If your New Year’s Resolution was to own your first home, let QPG help you achieve your goal. The homeownership process may seem very overwhelming, but we’ve broken down three important factors to help you become a homeowner in 2023.
A ‘homebuyer’ Grant can help you get started
Government Initiatives and using a Guarantor can help first-time buyers with their deposit and allow them to enter the property market sooner.
Three Government Initiatives that can assist first-time homeowners into the property market sooner are First Home Owners’ Grant, First Home Guarantee and the Family Home Guarantee.
The First Home Owners’ Grant
The QLD First Home Owners’ Grant assists you with $15,000 to use with your deposit for your first home, if you meet the certain criteria. The First Home Owners’ Grant amounts vary depending on the State or Territory you are purchasing in. Click here to find out if you are eligible for the First Home Owner’s Grant.
The First Home Guarantee
The First Home Guarantee is a Federal Government Initiative to help eligible first-time buyers save for a deposit and purchase their first home sooner. By using the First Home Guarantee, eligible first-time buyers can enter the property market with a deposit as low as 5% without needing to pay Lender’s Mortgage Insurance. Click here to find out if you are eligible for the First Home Guarantee.
The Family Home Guarantee
The Family Home Guarantee is a Federal Government Initiative to help eligible single parents purchase a family home with a deposit as little as 2%, regardless of if they are a first-time buyer or previous owner-occupier. Click here to find out if you are eligible for the Family Home Guarantee.
If you are eligible for multiple Government Initiatives, you are in luck! The First Home Owners’ Grant can be used in conjunction with the First Home Guarantee and the Family Home Guarantee.
Find a Guarantor
A guarantor is someone, often a close relative, who can help you secure a home loan by agreeing to offer their existing property as additional security for your loan. Most lenders would prefer the guarantor to be a close relative such as – parent, grandparent, or sibling.
A guarantor does not need to provide any cash payment to assist you in your home loan. The guarantor will agree to offer part of their home’s equity to top up your cash deposit.
As the future homeowner, you will be the main person responsible for making the regular repayments towards the mortgage. However, if you are unable to pay, the person who guaranteed your home loan may be liable to cover the repayments.
A benefit of having a guarantor on your home loan may help you avoid you paying Lender’s Mortgage Insurance.
Understanding Your Financial Situation
Once you have explored ways to assist with your deposit, it is important to understand your financial situation.
Your living, employment, financial situation and credit will determine how much you can afford to borrow for your new home loan.
It is important to stay realistic about what you can afford and not overcommit to a loan option if you are unable to enjoy the joys of homeownership.
Complete a Homeownership Assessment, and once submitted, you can connect with a Finance Broker that it suitable for your situation if you are eligible. It is important to complete a Homeownership Assessment before you commit to a house to ensure there are no unexpected hurdles.
Prepare Yourself
Starting out in property as a first home buyer can be tough if you aren’t sure where to begin. There are three questions that can help prepare you for homeownership and determine whether you are ready to make your move.
Know the costs associated with buying a home
You should prepare yourself for being a homeowner before you own a home. This could be by exploring the costs behind homeownership and ensuring you can afford to repaying a debt when it is due.
Conduct a thorough search of the market
Educate yourself through research and asking your family and friends about their property experience. It may be helpful to research common mistakes first-time homeowners make so you know what to avoid.
As this is your first time purchasing a home, it is understandable that you may have a lot of questions but are unsure who to ask.
Consult with a real estate professional
No one expects you to have a smooth first purchase by yourself, so you should connect with industry expert. It may be your first time purchasing, but it is not our first time guiding a first-time homeowner so let us lead the way.
If you’re making the move into the property market, be sure to keep these helpful tips in mind. The property market can be a tricky place to navigate, and your success will greatly depend on how you prepare. Put in the research now, before you make your purchase, and set yourself up for future success.
Hopefully we have shown you that anyone can enjoy the benefits of homeownership, and provided some tips on where to begin the process of making your purchase. Contact us today if you are thinking about buying your first home, or if you have any questions about purchasing property in South East Queensland.