---

Aussie - they negotiate better interest rates

This places you in a better position to negotiate a lower interest rate because the larger the guarantee the less risk you present to lenders.

Avoid paying Lender’s Mortgage Insurance

If at all possible try and so a down payment of 20 % or more as this can allow you to avoid what’s known as ‘Lender’s Mortgage Insurance’ (LMI), because this protects the lender and not you, so if you are unable to make repayment on your loan it’s a cost worth avoiding.

Pay less in the long run

The bigger your down payment the less you need to borrow. This means that your repayments will be lower, and you will pay less in interest over the lifespan of the loan. Their property finance repayment calculator will assist you in accessing how much you could save by having a larger deposit.

More loans to choose from

A bigger down payment could give you a wider choice of loans. This makes it easier to get a good or better deal on the right loan, allowing you to save even more in the long run. You can choose to apply through a mortgage broker or simply fill in an online loan application. 

Financial support for first home buyers - getting the FHOG.

There is a chance that buyers might be eligible for a range of government grants and concessions that vary according to which state or territory you are buying.

The main source of financial support for first home buyers is a Grant (FHOG) which is a one-off, tax-free payment to people buying their first home in Australia, though state and territory governments hand out the FHOG on behalf of the Federal Government, it’s worth checking how it works in your area.

Determine eligibility for the FHOG

In general, the main conditions that determine eligibility for the FHOG are set out below. You need to be a permanent resident of Australia, building or buying your first home in Australia. The property you purchase essentially needs to be a recognised house, flat or unit specifically intended for people to live in.

Either you or your partner would have had to have purchased in Australia previously. The home must be occupied within a period of at least 6 months within 12 months of settlement or within 12 months of the building being completed if it’s a newly built home. You have 12 months of settlement or building completion to apply for a grant. The grant will only be paid at the time of settlement or building completion or in the case where you apply after this time period subsequent to your application. Ensure that contracts are exchanged between the two parties (buyer and seller) before any cut-off dates.

Should you use a buyer’s agent?

Buyer’s agent is becoming more common in Australia, they will charge a fee for their services (normally based on a certain percentage of the property sale price) so it is advisable to make sure you are able to budget for the extra cost.