We recommend you first speak to a broker to help establish your property budget and your ability to obtain finance.
This involves evaluating your borrowing capacity, your available deposit, and any special considerations in your application.
We recommend having a 20% deposit plus transaction costs for the best interest rates and a smooth application.
If you do NOT have this, we can consider solutions such as seeking a Family Guarantee or applying for Lenders Mortgage Insurance.
Yes, it is very common for parents to contribute some form of gift to assist their children with getting into the property market.
Applying a gift to your application makes the process smoother – in some instances, it can be the difference between having the loan approved or not.
You will need PDF copies of:
A tailored list of supporting documents can be sent to you by contacting us and making an enquiry.
See your Finance Made Easy loan steps to understand the property finance journey.
This depends on your net income.
In broad terms, this is your gross income minus tax, less living expenses and other financial commitments that you need to make whether real or assumed by the bank.
In other words, this is the surplus cash flow you have available to pay back a loan.
The main costs to consider are:
Of importance, but less material are:
You should also consider the costs of moving, furnishing a new home, and also have some money set aside after the purchase for living expenses and to make future mortgage repayments.
We typically recommend a Packaged Loan which has the following features:
This type of loan package usually has an annual fee.
However, the benefits outweigh the costs if you derive value from the features.
Yes, we recommend you seek professional legal advice for any property purchase.
Your lawyer should be appointed BEFORE you start negotiating on a property. You should also have your lawyer review your contract before you sign it and pay your deposit.
There is a minimum deposit you will need to simply secure the property and take it off the market. This is typically 5 – 10% for a seller to accept your offer.
If you do not have more than that, we can consider using a Family Guarantee if your parents have equity in the property. You can also consider paying Lenders Mortgage Insurance if you and the property you are buying are eligible.
With both these solutions, you must be able to demonstrate you can afford the higher loan repayments that come with a higher loan amount.
Lenders Mortgage Insurance (LMI) is a one-off fee that you pay to an insurance provider for borrowing above a certain Loan to Value Ratio (LVR). Typically this LVR is 80%.
This premium is for the Bank’s benefit where, in the worst case, they need to sell your and they make a loss on the loan. The Mortgage Insurer then protects the bank by reimbursing them on the loss.
The benefit of LMI to you is you are able to borrow more, and thereby access a higher value property. The cost is you must pay the fee which increases as the loan amount and LVR.
Yes, within certain parameters you can add LMI to the loan. This is known as ‘capitalising’ LMI.
Yes, we have assisted many clients with Family Guarantees. Please read more information on our Family Guarantee page.
Yes, we have managed the smooth settlement of 100’s of off-the-plan properties. We know the steps and the intricacies in great detail to make sure your property settles on time.
A Pre-Approval is a credit-assessed application where the bank is willing to lend to you subject to the valuation and other conditions. It is usually in the form of a letter issued by the bank.
The benefit of a Pre-Approval is that it allows you to negotiate for a property with confidence, and move quickly when you find a property that you like. It also reduces the time to Formal Approval as a credit officer has already reviewed your file.
We strongly recommend you obtain a pre-approval where you are actively looking and negotiating for property to put you in the strongest position.
A pre-approval typically lasts for 6 months. At 90 days you must update a pre-approval by sending in new pay verification and supporting evidence that proves your financial position has remained unchanged.
We typically advise the following turnaround times:
SF Capital Assessment
NOTE: The more timely and accurate your information the quicker the turnaround times.
These timeframes are subject to change during times of the year. For example, prior to Easter, End of Financial Year and Christmas, timeframes can stretch for us and the banks due to workload.
Please check your respective State Government website on http://www.firsthome.gov.au/. We can help you evaluate your entitlement to a First Home Owner Grant or Stamp Duty Exemption at the time of your enquiry.