First home buyers have access to special loans, rates, cashback and certain features such as longer loan term of 40 years to help with servicing.
What are some of the special loans/features First home buyers have access to?
- A longer loan term to help with serviceability, such as a 40-year loan term instead of the standard 30.
- Special discounted interest rates
- Cash back
- Some loans are linked to certain government grants
- NO lenders mortgage insurance (LMI) up to 85% LVR ( loan to value ratio)
What is the top 5 common mistake first home buyers make?
- Some common mistakes we see first home buyers make are.
- Applying for multiple credits cards/ after pay/ zip pay.
- Applying for multiple pre-approvals with different banks within a short period of time.
- Applying for a pre-approval loan amount that’s too low for their desired property price range, always have a higher buffer in your pre-approval.
- Not thinking about Plan B, should your loan not get approved. Especially if your bidding at an auction.
- Making assumption that their file will be approved and buying without seeking advice or a pre-approval first, nothing is guaranteed till you obtain the banks unconditional approval in writing.