Residential Finance
First Home Buyer Loans
Making Your First Home Purchase Easy with 3 Pillars Finance
Buying your first home is an exciting milestone, but it can also feel a bit overwhelming. Don’t worry—your 3 Pillars Home Loan Specialists are here to make the process easy.
We’ll guide you through saving for your deposit, understanding how much you can borrow, and estimating your repayments. We’ll also help you navigate what to consider when looking for a property, the next steps once you’ve found one, and what to expect during the settlement process. Let us help you bring your dream home to life effortlessly.
First Home Purchase – Government Assistance
The government provides various forms of assistance designed to help you get into your first home sooner. Click the links below to find out of you’re eligible for Government Assistance:
First Home Buyers Guarantee (FHBG)
The tool gives you an indication of whether you’re eligible for one or more of the NSW Government programs to support home buyers and provides instructions on how to apply.
First Home Buyers Assistance Scheme (FHBAS)
First home buyers receive a transfer duty exemption or pay a reduced rate when buying an existing home, new home or vacant land to build a home on worth up to $1 million in NSW.
First Home Owners (New Home) Grant
First home buyers who build a new home or purchase a brand new or substantially renovated property can receive a $10,000 grant.
Shared Equity Home Buyer Helper
If you are eligible for Shared Equity Home Buyer Helper, you may be able to purchase your own home with as little as a 2% deposit.
Frequently Asked Questions
Buying a home is a significant milestone, and at 3 Pillars Finance, we’re here to make the journey smoother for you. We understand that there’s a lot to learn when it comes to home loans, so we’ve put together answers to some of the most common questions our clients ask.
A home loan, also known as a mortgage, allows you to borrow funds from a financial institution to purchase a home. Since most people don’t have the full amount to pay for a home outright, they borrow the money and repay it over a period of up to 30 years, minus their initial deposit.
The amount you can borrow depends on various factors, including your income, the type of property you want to buy, your savings, expenses, and future plans. It’s wise to be conservative in your estimates to avoid overextending yourself. Speak to a 3 Pillars Home Loan broker whom can provide some guidance and provide some directional support.
There are many home loan options available, ranging from basic loans with fewer features to those with benefits like an offset account, redraw facilities or a linked credit card. The right loan for you will depend on your circumstances and preferences.
Your 3 Pillars Finance broker will undertake a fact find to discover your needs and compare then side by side. Our finance brokers with then develop a personalised game plan tailored just for you.
The interest rate is the cost of borrowing the principal amount of the loan, expressed as a percentage per annum. It does not include any other fees or charges associated with the loan.
The comparison rate, on the other hand, provides a more comprehensive picture of the true cost of the loan. It includes the interest rate plus most fees and charges related to the loan, expressed as a single percentage per annum. This rate helps borrowers understand the overall cost and compare different loan products more effectively.
Variable Rate Mortgage: The interest rate can rise and fall, usually in response to changes in the official cash rate set by the Reserve Bank of Australia. These loans often allow unlimited extra repayments and may include benefits like an offset account.
Fixed Rate Mortgage: The interest rate is fixed for a specific term (usually from 1 to 5 years), providing certainty in your repayments for that period. This can be beneficial if you expect interest rates to rise or prefer knowing your exact outgoings.
Split Loan: You can split your loan between fixed and variable rates, offering a mix of stability and flexibility.
Your repayments depend on factors such as the size of your deposit, how much you borrow, the frequency of your repayments, and the interest rate. Fortnightly repayments might help you pay off your loan sooner than monthly repayments. Speak to your 3 Pillars Finance Broker about how this can help you pay off your loan sooner.
A deposit is your upfront contribution to the cost of a property. Typically, you’ll need a minimum deposit of 5% of the purchase price, but a 10% deposit is often recommended for first home buyers to cover associated costs like lenders mortgage insurance (LMI), stamp duty, and conveyancing fees. A deposit of 20% plus costs (such as stamp Duty, conveyancing and other fees) might exempt you from paying LMI.
Applying for a home loan can involve two phases: pre-approval and unconditional approval.
Pre-Approval: An initial assessment of your borrowing power, giving you an idea of how much you can borrow. This helps you shop for properties within your budget.
Unconditional Approval: Once you’ve found a property, you apply for unconditional approval, which is a more specific assessment leading to the final loan agreement. This happens after your offer is accepted, and the bank agrees to provide the funds for the purchase.
Talk to one of our 3 Pillars Finance brokers who may be able to give you an idea of the size and type of loan you might be eligible for.
At 3 Pillars Finance, we’re here to guide you every step of the way. For personalised assistance, reach out to our friendly team. Any advice provided here is general in nature and doesn’t consider your personal needs, objectives, and financial circumstances.
Feel free to contact us at 3 Pillars Finance with any questions or to start your home buying journey today!
