Effective Ways to Secure Funding for First Time Home Buyers in Sydney

23 August 2021

There are many important aspects for first time home buyers in Sydney to consider. One of the most essential steps to new homeownership is securing the necessary funding. Yet whether you already have access to funds or are seeking a loan for buying your first residence, there are varied good options available for you.

Effective Methods of Securing Funding for Sydney’s First Time Home Buyers

Effective ways for first time home buyers in Sydney to obtain funding include the following:

• No Deposit Loans. First time home buyers in Sydney can apply for no deposit loans. With a guarantor loan, they can borrow as much as 105 percent of the new property value. These loans help young home buyers avoid the extra expense of Lenders Mortgage Insurance (LMI).

If you are seeking funding to purchase your first home property and your parents own their home, they can secure your mortgage based on the equity in their own property. This can enable you to buy your new house without making a deposit. This loan can cover extra costs like mortgage introductory fees and stamp duty as well as any legal and conveyancing costs.

Having a guarantor for your home loan may also lower your interest rate. If best for them, your parents can also gift you the loan deposit amount. You may also be granted discounted interest rates as well as waivers on charges for a loan application, approval and valuation.

• First Home Owners Grant (FHOG) as Loan Deposit. As a first time home buyer in Sydney, you can make use of the First Home Owners Grant (FHOG) for your loan deposit. In most cases, you will need to supplement this grant to meet your deposit amount, yet it can be of great help.

According to your state of residence and the property price, your grant may range from $5,000 to $20,000. Additional grants may also be available for first time home buyers in your state.

• First Home Loan Deposit Scheme. The Australian federal government now offers an initiative entitled “First Home Loan Deposit Scheme.” This enables first time home buyers in the low through middle-income levels to buy a home using a deposit of as little as five percent. This also eliminates costly LMI fees for these home seekers.

An additional benefit is that they can also combine the Deposit Scheme and the FHOG to acquire a new home property. Stamp duty exemptions, more grants and added benefits are also available from some state governments.

• Construction Loans. If you are considering building your first home rather than buying an existing property, you can apply for a construction loan. You are eligible to seek this loan if you are buying land for building or purchasing a house and land package.

When you consult our experts at Olympia Homes located in Alexandria, NSW, you will receive excellent advice concerning obtaining loans as a first time home buyer in Sydney. Our experienced licensed building professionals can also provide you with top-calibre designs, building and installation services for your new home or house and land package.

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