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FIRST HOME BUYER FAQS

As a first home buyer, you probably have dozens of questions that you want answered–Which home loan product should I choose? How much do I need for a deposit? Do I qualify for a first home owners grant? What interest rates are available for me? Do I want a fixed or variable loan?–and the list goes on. Here are a few of the most asked questions at Cash Back Mortgage:

Common Types of Home Loan
When does the First Home Owner Grant end?
The First Home Owner Grant is an on-going scheme with no end date set.
Is the grant only for people who are building a home?
No. The grant is also available for the purchase of an existing home.
Does the grant cover the purchase of a vacant block of land?
No. The grant only covers purchasing of a home, not vacant land.
Does each applicant get $7,000?
No. Only one grant is payable per eligible person regardless of the number of eligible applicants involved in the transaction.
Is the grant taxed?
No. There is no tax payable on the First Home Owner Grant.
Does my income affect my eligibility?
No. There is no means test to determine your eligibility.
Does the price of the home need to be under a limit to receive the First Home Owner grant?
Yes. Effective from 1 January 2010 the First Home Owner Grant is capped and the grant will only be available for properties with a total value not exceeding $750,000 (depending on the State you live in).
What other fees are involved in a home purchase?

It is advisable to allocate 4%-6% of the purchasing amount for these possible charges:

– Property Inspection and Strata Costs
– Application and Settlement Fees
– Valuation Fees
– Conveyancing Fees
– Stamp Duty
– Lenders Mortgage Insurance (LMI)
– Property Insurance
– Council Rates
– Connection Fees
– Removal Fees

How much do I need to allot for stamp duty?
Stamp duty is set by the State and Territory governments. It is generally based on the selling price of a property. The calculations and guidelines vary depending on the State and Territory concerned.
What are the documents needed for my application?
For starters, supporting documents indicating your identity and income are needed. These documents can include birth certificate, passport, driver’s licence, bank statements, most recent payslips and income tax returns.
How often must I make loan repayments?
Because lenders want to be as accommodating as possible, they offer flexible loan payment plans. Customers have the option to pay weekly, fortnightly or monthly.

Cash Back Mortgage simplifies the process of buying your First Home.

  • Easy to get started: Simply Call Us
  • Easy to use: simply click for the home loan comparisons
  • Cash Back Mortgage refunds 70% of the Upfront Commission

Call us for your FREE First Home Buyers E-book on 1300 640 988.

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