First home buyer FAQ
How much money can I borrow?
Each situation is different, contact JGM Lending & Finance to speak to one of our Cairns mortgage brokers to find out your borrowing power.
Which loan is best for me?
We love helping North Queensland residents learn about the home loans available to them. There are so many options available let our experienced mortgage brokers talk you through the different types and features on offer.
How much do I need for a deposit?
Depending on the value of the property you will need a minimum deposit of 5% – 10%. This amount is to be paid when signing a sales contract. Already have an existing property? Contact us today to find out how you can borrow against the equity.
How much will my loan repayments be?
JGM Lending & Finance Repayment Calculator is a great tool to use to estimate your home loan repayments. Due to various home loan products and offers to secure the best loan rate contact us today.
When do I make repayments on my home loan?
Having a home loan with different repayment options offers you the flexibility to pay either weekly, fortnightly of monthly. Did you know that by making more regular payments on your home loan you may pay your loan off quicker which will save you money.
Am I eligible for the First Home Owner Grant?
Being a first home buyer means you may be eligible to apply for the first home buyers grant. If you are an Australian citizen or a permanent resident and wish to make Cairns your place of residence for 12 months then chat with our finance brokers today to find out more about the QLD eligibility requirements.
Are there any charges/fees that I need to be aware of when buying a property?
Being aware of the fees and costs involved below when purchasing a property will ensure that you don’t get any surprises:
– Stamp Duty – Stamp duty is a government tax that is legally required to be paid on single property purchases. The amount that you will be required to pay varies and is dependent on the value of the property and in which State you are purchasing. The mortgage may incur a stamp duty fee also. Head to our Stamp Duty Calculator to get an estimation.
– Conveyancing and Legal fees – You will need to engage a conveyancer. They are licensed professionals who provide title searches and legal documentation preparation, they assist both the vendor (seller) and purchaser through the selling process. These fees vary and often range from $1000.00 – $1500.00.
– Building inspection – When discussing your contract of sale, you should do so by including the condition ‘subject to buiding inspection’. This allows you the opportunity to engage a qualified building inspector to inspect the property prior to purchase. Should there be any structural problems this will then ensure that you have the opportunity to withdraw your offer without incurring any financial penalties. An inspection report varies depending on the property size. The sales agent or your conveyancer can arrange an inspection for you and the cost can be anywhere up to $1000.00.
This amount may be paid at settlement and is not included in the conveyancing charges.
– Pest inspection – We have all seen the horror stories of the damage white ants can do. Make sure you include ‘subject to pest inspection’ in your contract of sale. Allocating up to $500 to secure a pest control inspection will ensure that the property is free of unwanted pests which can cause significant damage to the home. If there are any pests residing on the property then you will have the option to withdraw from the contract without incurring financial penalties. The sales agent or your conveyancer can arrange an inspection for you. This amount may be paid at settlement and is not included in the conveyancing charges.
– Lender fees – An establishment fee between $600 – $800 is a common fee charged by the lender. This covers the cost of administration and valuation. Your mortgage broker will advise you of the exact charges when establishing the home loan.
– Moving costs – If you plan on using a removalist make sure you include their charges in your calculations.
– Lender Mortgage Insurance – Lender Mortgage Insurance (LMI) is incurred if you are borrowing more than 80% of the purchase price of the property.
In addition to LMI, you may also want to sign up for Mortgage Protection Insurance.
– Strata – If you purchase a property that is a strata title (when purchasing units or apartments with communal areas) then you will be required to pay ongoing strata fees. The Sales Agent will be able to provide you with information relating to the annual costs involved.
– Ongoing property costs – The following costs associated with owning a property should be considered: Water rates, council rates, insurance, and loan repayments. Most home loan lenders require the borrower to insure their property with building insurance as a minimum to cover the borrowed amount.
