Securing financing to enter the property market can be challenging for first-time home buyers. The daunting task of finding the perfect property and attending house inspections only adds to the complexity. Juggling multiple aspects simultaneously, including sustainable financing, can be overwhelming. However, acquiring your first home is a significant life decision and commitment. Accelerate the realization of your dream home by obtaining approval for the right home loan with First Royal.

Your Dream Home made reality with First Royal

First Royal, your trusted partner in home loans, is committed to assisting you in obtaining the best finance solution. We navigate the market to identify the right lender, negotiate optimal home loan rates, and ensure a swift deal closure.

As award-winning mortgage brokers, First Royal leaves no stone unturned. Our strategic approach involves in-depth market research, credit policy reviews, negotiations with credit managers, and meticulous interest rate comparisons across 40+ partner lenders. We decipher the fine print, providing industry-leading advice to match the most suitable home loan with your financial situation and goals.

Here are common queries from first-time home loan applicants, offering insights into how our mortgage brokers can guide you in securing the ideal home loan for your first property.

How can I Initiate my Home Loan Journey?

Before committing to long-term decisions like applying for your first home loan, laying down your goals and understanding the path you should pursue is crucial. Engage with one of our mortgage brokers to discuss your plans. Our brokers delve into your immediate and long-term goals, determining your current borrowing power, capacity, and the ideal property value to secure the right finance.

Our home loan specialists evaluate your financial position and guide you through preferred lenders that align with your needs. With a 98% approval rate across 40+ banks and lenders, we ensure a comprehensive comparison to find the best fit.

Preparing for a Home Loan Deposit

Lender’s view applications more favourably when accompanied by a deposit. While a 20% deposit is often preferred, various options exist if you cannot secure this amount. Our brokers provide guidance on alternative solutions such as the First Home Loan Deposit Scheme (FHLDS) and guarantor home loans. Benefit from our expertise to make informed decisions throughout your first home buying journey.

Required Documents for a Home Loan

When applying for your first home loan, prepare essential documents, including a copy of your Passport and Driver’s Licence, latest bank statements, consecutive payslips (for PAYG employees), and tax returns for self-employed borrowers. Our team can provide a tailored list of required documents to expedite your home loan application.

Understanding Lenders’ Mortgage Insurance (LMI)

Lenders’ Mortgage Insurance (LMI) is a term encountered frequently during your first home loan journey. In essence, LMI protects the lender in case of borrower default on loan repayments. Our experts guide you through the considerations of LMI, ensuring you understand its implications and costs.

What is LMI?

Understanding LMI (Lenders Mortgage Insurance)

LMI, or Lenders Mortgage Insurance, serves as a protective measure for lenders facing increased risk when granting high Loan-to-Value Ratio (LVR) loans. Although its primary purpose is to safeguard the lender, LMI is a fee incorporated into the borrower’s loan package.

Here’s a breakdown of how LMI functions: In the event of a borrower default, lenders typically recover the outstanding mortgage loan amount by selling the property secured against the loan. However, there are instances when the property’s sale falls short of covering the loan value, resulting in what is termed as “negative equity.” In such cases, the LMI provider steps in to bridge the gap, compensating the lender for the shortfall.

Cost of LMI

LMI providers employ a sliding scale to determine the associated costs. This scale factors in the loan amount and the LVR percentage, calculating LMI premiums based on different scenarios. Simply put, the higher the loan amount and LVR, the greater the LMI cost borne by the borrower. It is safe to say the premium is about 2%-3% of the loan value.

Determining Borrowing Capacity

Your borrowing capacity depends on factors such as income, liabilities, expenses, and the available deposit. Our rule of thumb is that income, deposit, and property value collectively influence your borrowing capacity. Consult with our mortgage professionals to assess how much you can finance for your home loan.

Costs Associated with Home Loan Finance

Be aware of common costs associated with purchasing a new home, including the home loan deposit, conveyancing fees, LMI fees, establishment fees, stamp duty, and additional fees depending on your local council. Our mortgage brokers provide clarity on these costs and help you navigate through the financial aspects of your home purchase.

Options for Insufficient Deposit

If you cannot provide a 20% deposit, explore options such as family guarantors, low deposit home loans, and government schemes like FHLDS. Our brokers offer personalized advice to find the best solution for your situation.

Eligibility for First Home Owner Grant

Contact us to determine your eligibility for the First Home Owner Grant (FHOG) or First Home Loan Deposit Scheme (FHLDS) in your state. Our mortgage specialists assess your eligibility, strengthen your application, and explore potential savings on stamp duty.

Embarking on Your First Home Loan with First Royal

At First Royal, we are the go-to professionals for the best home loan deals. Our winning formula ensures swift results, returning the best home loan options in no time. With a risk-free approach, our services come at no cost to you, as we negotiate on your behalf, directly compensated by the banks. Save time and money by initiating a conversation with us about your first home loan today.