Browse Forums Home Finance 1 Jan 12, 2009 7:24 pm As per the title I guess I want see what 1st home buyers are doing with the increased grant, spending bigger or reducing debt?
My partner and I are going into a loan with a 10% deposit because of our own cash and the grant - the sales rep at the land office was quite surprised when I mentioned the deposit size and said she regularly had people with 95-100% loans required. sydney home loan advice, construction loans in sydney 3Jan 13, 2009 4:19 pm hi Zerosignal, most first home buyers we see are using the increased first home owners grant to contribute more to the purchase, so instead of a 5% deposit they are now either increasing their target price slightly or buying with a 7% deposit (let's say) to lower the mortgage insurance cost which have gone up a lot recently.
One of my first home buyer customers who was pre approved for a 100% home loan, after seeing the cost of mortgage insurance, asked if she could change to a 95% home loan. The savings in costs were substantial, rather than paying a larger sum into the insurance premium, she started her home ownership with a 5% equity. It really depends on whether you want to upgrade to a better location or lowering purchase costs. Re: Curious: thlo what deposit % are you seeing for 1st home buy 4Jan 13, 2009 4:38 pm Maybe I've got it all wrong, but why would people borrow 100% and pay such huge amounts to the bank for insurance. Isn't this 'insurance' just dead money? IMO if the cash was there to borrow less, wouldn't this be the ideal scenario as opposed to paying for something you'll never get back (or anything for?) 100% Home Loans, No Deposit Home Loans, Home Loan Advice 5Jan 13, 2009 5:13 pm ICK Maybe I've got it all wrong, but why would people borrow 100% and pay such huge amounts to the bank for insurance. Isn't this 'insurance' just dead money? IMO if the cash was there to borrow less, wouldn't this be the ideal scenario as opposed to paying for something you'll never get back (or anything for?) First home buyers typically use 100% home loans because it helps them stop paying rent immediately which is dead money as well, rather than struggling to save a deposit and pay the ever increasing rent at the same time. Not everyone has savings, unfortunately, especially if they are raising kids. Re: sydney home loan advice, construction loans in sydney 6Jan 13, 2009 6:30 pm thlo hi Zerosignal, most first home buyers we see are using the increased first home owners grant to contribute more to the purchase, so instead of a 5% deposit they are now either increasing their target price slightly or buying with a 7% deposit (let's say) to lower the mortgage insurance cost which have gone up a lot recently. Good to see that people are mostly using it to reduce their debt burden. Feel quite ok with an approximately 10% deposit now. Re: 100% Home Loans, No Deposit Home Loans, Home Loan Advice 7Jan 14, 2009 8:28 pm thlo ICK Maybe I've got it all wrong, but why would people borrow 100% and pay such huge amounts to the bank for insurance. Isn't this 'insurance' just dead money? IMO if the cash was there to borrow less, wouldn't this be the ideal scenario as opposed to paying for something you'll never get back (or anything for?) First home buyers typically use 100% home loans because it helps them stop paying rent immediately which is dead money as well, rather than struggling to save a deposit and pay the ever increasing rent at the same time. Not everyone has savings, unfortunately, especially if they are raising kids. Yeah, very true my bad - I'll just go back to living in my bubble ICK So glad the building is over, never again. Loooove our house, but still not quite sure it was worth all of the stress they put us through! Re: Curious: thlo what deposit % are you seeing for 1st home buy 8Jan 14, 2009 8:35 pm Also, with house prices where they are, it is almost damn near impossible for a young couple to get 10% and fees together. Thats, correct me if I am wrong thlo, about $72000.
How can anyone (without gifts) save that up? Re: Curious: thlo what deposit % are you seeing for 1st home buy 9Jan 14, 2009 10:55 pm Colsy Also, with house prices where they are, it is almost damn near impossible for a young couple to get 10% and fees together. Thats, correct me if I am wrong thlo, about $72000. How can anyone (without gifts) save that up? Our house and land is approx $380k with our cash and the grant we have approximately 10%. home loan advice in sydney, sydney home loan centre 10Jan 15, 2009 11:04 am Colsy Also, with house prices where they are, it is almost damn near impossible for a young couple to get 10% and fees together. Thats, correct me if I am wrong thlo, about $72000. How can anyone (without gifts) save that up? In South Australia stamp duty and transfer fees alone would be about $25,000 on a $500,000 purchase. If you add to that $50,000 for 10% deposit, you are spot on Colsy. Or for a $400,000 purchase price, $40,000 for deposit and $19,000 stamp duty and transfer fees. Re: Curious: thlo what deposit % are you seeing for 1st home buy 11Feb 18, 2009 4:06 pm Colsy Also, with house prices where they are, it is almost damn near impossible for a young couple to get 10% and fees together. Thats, correct me if I am wrong thlo, about $72000. How can anyone (without gifts) save that up? My partner and I are doing it! I must admit that it was VERY hard and we had to be disciplined! Idiots are fun, that's why there is one in every village! - Dr. House - saving a deposit for first home 12Feb 18, 2009 4:57 pm wonderland Colsy Also, with house prices where they are, it is almost damn near impossible for a young couple to get 10% and fees together. Thats, correct me if I am wrong thlo, about $72000. How can anyone (without gifts) save that up? My partner and I are doing it! This will be our first home also and we have managed to save about 30% deposit, as well as save up for our wedding at the end of this year. I must admit that it was VERY hard and we had to be disciplined! Well wonderland, I take my hat off to you. How long did it take you? Re: Curious: thlo what deposit % are you seeing for 1st home buy 14Feb 18, 2009 7:07 pm Thanks Thlo
Oh believe me, it's really hard. Especial because we put most of our pay away everyweek, and it's been 2 years since we've been seriously saving. We did save half heartedly for about another year! And I must admit that it helps when you still live at home with mum! Idiots are fun, that's why there is one in every village! - Dr. House - Re: Curious: thlo what deposit % are you seeing for 1st home buy 15Feb 18, 2009 9:15 pm d@n Thlo, why is your home page set to a 600 pixel width?. The days of 640 x 480 are long gone. Yes d@n, when I have some time off, we're going to work on that. I've been improving the content only until I'm satisfied that it covers most topics first home buyers would benefit from. Then I can look at the cosmetic changes maybe even add a few "happy couple at home" photos etc. like most mortgage sites wonderland Thanks Thlo And I must admit that it helps when you still live at home with mum! Aha that's your secret, but still an incredible accomplishment. thlo what deposit % are you seeing for 1st home buy 16Apr 05, 2009 2:14 am Zerosignal, what a difference a few months makes. As a result of major lenders changing deposit requirement rules, most applicants do not have the luxury of deciding anymore, a certain percentage of the deposit must come from demonstrated savings (unless we are successful in securing an exception to the rule). A selection of lenders still accept the First Home Owners Grant FHOG as "the" deposit at the lower price range but they are not the major banks, which may also mean you can have quicker approvals. There is evidence of water on the head reveals. That could have happened during the build, or may be happening currently. There are water stains above a couple of windows… 2 3830 Hi there, We’ve recently had plans approved to add a 1st storey addition to our existing house for a growing family in Sydney. With the current cost of building… 0 4296 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 |