Henley Select jargon buster

FIRST HOME BUYER TOOLKIT - VICTORIA

WHAT IS HENLEY SELECT? Henley Select is a process which helps first home buyers understand what’s actually possible - combining expert home loan advice with government support to help eligible buyers maximise their options and step into a brand new Henley home sooner.

Move‑in ready homes from under $650,000 Deposits from under $27,000 for eligible buyers Support to understand and combine government grants and guarantees Clear guidance before you pay a deposit or sign a contract

Double storey homes from $734,990. Homes shown are move-in ready examples only.

JARGON BUSTER FINANCE & LENDING BORROWING POWER (CAPACITY) How much a lender is willing to loan you based on income, expenses, debts and savings.

DEPOSIT The upfront amount you contribute toward the purchase price (often 5–20%).

LOAN-TO-VALUE RATIO (LVR) The percentage of your loan compared to the property value.

Example: LVR with a $650,000

• Higher LVR = lower deposit

Property price: $650,000

• Above 80% LVR may trigger LMI

Deposit: $32,500 (5%)

LENDERS MORTGAGE INSURANCE (LMI) Insurance that protects the lender (not you) when borrowing with less than a 20% deposit.

LVR calculation:

PRE-APPROVAL (CONDITIONAL APPROVAL) An indication from a lender of how much you can borrow before you buy.

Your LVR = 95%

INTEREST RATE The cost of borrowing money, expressed as a percentage of your loan.

COMPARISON RATE A rate that includes interest plus most fees, helping you compare loans properly.

PRINCIPAL & INTEREST (P&I) Repayments that reduce the loan amount (also known as the principal) and pay interest over time.

OFFSET ACCOUNT A savings account linked to your loan that reduces the interest you pay.

EQUITY The portion of your home you own (value minus what you owe).

property (5% deposit)

Loan: $617,500 LVR = Loan ÷ Property value LVR = 617,500 ÷ 650,000 = 0.95 = 95%

BUYING PROCESS CONTRACT OF SALE The legal agreement outlining price, conditions and settlement date (relating to a Henley move-in ready home).

BUILDING CONTRACT The agreement between you and the builder. It covers the construction of a home and includes scope of works (what will be built), build cost, timeline, progress payments and specifications and finishes. In simple terms, it’s the contract to build the home.

COOLING-OFF PERIOD A short window (usually 2–5 days) where you can change your mind after signing.

CONVEYANCER / CONVEYANCING A legal specialist who manages the transfer of property ownership.

SETTLEMENT The final step when ownership transfers and you officially take possession.

BUILDING INSPECTION A professional check of the property’s condition before purchase and/or settlement.

VALUATION An independent estimate of a property’s market value.

BUILDING & CONSTRUCTION (NEW HOME FOCUS) HOUSE & LAND PACKAGE Buying land and a home design together as a combined solution.

MOVE-IN READY HOME A Henley completed or move-in ready home is a brand-new, fully built home that’s finished and ready for you to move into - without the need to go through the construction process yourself, and which is purchased under a Contract of Sale.

PROGRESS PAYMENTS Payments made in stages under a Builld Contract as your home is built.

TITLED LAND Land that is registered and ready to build on.

PRACTICAL COMPLETION (PCI) Final inspection before handover to identify defects. (Referenced in internal glossary work)

COSTS & TAXES STAMP DUTY (LAND TRANSFER DUTY) A government tax payable when purchasing property (often reduced or waived for first home buyers).

UPFRONT COSTS Additional costs like: • Conveyancer/legal fees • Loan fees • Inspections • Stamp duty ONGOING COSTS Expenses after purchase, including: • Council rates • Insurance • Loan repayments

GOVERNMENT GRANTS & SCHEMES FIRST HOME OWNER GRANT (FHOG - VIC) A one-off $10,000 payment for eligible first-home buyers purchasing or building a new home.

Key eligibility: • Must be a first home buyer • Property must be new • Value ≤ $750,000 • Must live in the home (principal residence) STAMP DUTY EXEMPTIONS & CONCESSIONS (VIC) Reduced or zero stamp duty for first home buyers.

Eligibility thresholds: • $0 duty: up to $600,000 • Reduced duty: $600k–$750k FIRST HOME BUYER GUARANTEE (FEDERAL) A scheme allowing eligible buyers to purchase with as little as a 5% deposit without paying LMI. Key eligibility: • Income caps apply • Property price caps apply • Limited places each year HOME GUARANTEE SCHEME (HGS) Umbrella federal program including: • First Home Buyer Guarantee • Regional First Home Buyer Guarantee • Family Home Guarantee FAMILY HOME GUARANTEE Allows eligible single parents to buy with as little as a 2% deposit.

FIRST HOME SUPER SAVER SCHEME (FHSS) Lets you save for a deposit through your super (tax-effective).

SHARED EQUITY SCHEMES (E.G. HELP TO BUY) Government contributes a portion of the property price in exchange for equity.

• You don’t need a 20% deposit to get started • There are multiple grants and schemes you may be able to combine • Most support is designed to help you: • Buy sooner • Reduce upfront costs • Avoid LMI • The biggest challenge is understanding what you’re eligible for

Henley Arch Pty Ltd trading as Henley Homes is a residential home builder and does not provide financial or credit advice.

Any information provided is general in nature and has not been prepared taking into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate to your circumstances before making any decisions and seek independent advice where appropriate.

Henley has partnered with My Expert®, an independent Australian home loan advisory firm, to assist customers with home loan and finance-related support. My Expert® is responsible for providing any credit assistance, recommendations or advice in relation to home loans or financial products. Henley does not provide credit assistance, recommend specific lenders or loan products, or act as a credit representative.

If you choose to proceed, your details will be shared with My Expert® for the purpose of contacting you in relation to your enquiry, subject to your consent.

Any case studies, examples or scenarios presented are illustrative only and are based on assumptions and information available at the time of preparation. They are provided for general guidance and do not constitute an offer, approval, or guarantee of eligibility, borrowing capacity or outcome. Individual circumstances, lender criteria, government policies and market conditions may vary and will affect outcomes.

All home loan approvals, eligibility for government grants or schemes (including the First Home Guarantee and First Home Owner Grant), and lending outcomes are subject to lender criteria and relevant government requirements. Terms, conditions, fees and charges apply.

While every effort is made to ensure the accuracy and currency of the information presented, Henley does not warrant that all information is complete, current or free from error. To the extent permitted by law, Henley disclaims any liability for loss or damage arising from reliance on this information.

Copyright owned by Henley Arch Pty Ltd Reg No: CDB_U49972. All rights reserved.

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Prices, inclusions, availability of homes and related offers are subject to change without notice and may vary depending on location, timing and individual project specifications. All homes, packages and offers are subject to availability at the time of enquiry or publication.