Home Mortgage

Home Loan Expenses

Home loans with a Loan to Valuation Ratio (LVR) over 80% are commonplace nowadays and because of this the reality can easily be mentally "glossed over". Establishing a mortgage by way of a high LVR home loan is expensive and carries with it the requirement for Lenders Mortgage Insurance (LMI). LMI can range from a few thousand to several thousand dollars or more depending on the characteristics of the loan to which it applies. It may be possible to include this amount as part of your loan and you may want to consider this option as a means of minimising your "start-up" costs.

Typically home loans also involve expenses such as a property valuation fee (lenders will only accept valuations by their own valuers), a loan establishment fee, conveyancing solicitors fees and a variety of government charges such as stamp duty, etc.

There are also some "down to earth" expenses which cannot be overlooked when buying your new home, ie. the cost of a removalist, the cost of utilities such as electricity, gas and telephone.............

The traditional advice of saving as much for a deposit as you possibly can is perhaps more valid now than ever before. When doing any self assessment you should factor the expenses mentioned into any calculations.

Applying for a home loan and being rejected can not only be demoralising but if repeated can in fact adversely affect your credit rating.

Reputable mortgage brokers such as those accredited with the MFAA can provide you not only with an accurate appraisal of your borrowing ability but also suggest a range of loan options.

First Home Owner Grant - General Information

The Commonwealth has requested that the states and territories assist first home buyers through the establishment of the First Home Owner Grant (FHOG).

In Queensland, the FHOG is administered by the Office of State Revenue.

Eligible applicants are entitled to a one-off $7,000 payment.

The applicant (or at least one of two joint applicants) must be Australian citizens or permanent residents and be at least 18 years of age.

You must be buying or building your first home in Australia.

The grant is not means tested and there is no tax payable.

Joint applicants will be restricted to a single application for a single property and only one payment of $7,000 will be made.

Announcement from the Commonwealth Government:

First home buyers

* who purchase established homes will receive a boost of $7000 that will double the grant to $14,000.

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* who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000, provided the home meets their relevant state or territory energy efficiency and sustainability standards.

*

* will be eligible for the First Home Owner Boost on contracts entered into from 14 October 2008 to 30 June 2009.

An anti-avoidance provision will be implemented as part of the new scheme in respect of contracts dated prior to 14 October 2008 that have been cancelled.

This grant will ease the financial burden associated with establishing a home loan, combined with E-M-@-I-Loans expert brokering the complicated process of selecting and organising the best home loan for you will be as painless as possible.

Queensland Government Duty Concessions

In Queensland, people buying their first home may be eligible for a transfer duty concession.

First home buyers can also benefit from an additional concession in the form of a reducing rebate.

From 1st January 2007, a new first home owner transfer duty concession will be available for the purchase of vacant land, pending construction and occupation within twelve months of completion.

Transfer duty concessions also exist for the purchase of an owner occupied home that is not a first home.