Real Estate THURSDAY, JULY 1, 2020 FROM COAST TO
COUNTRY
WWW.TWEEDVALLEYWEEKLY.NET.AU
Learn the tricks of the trade to enter the property market By Jo Kennett
WITH RENTAL properties
increasingly hard to come by, now is a surprisingly good time for first-home buyers to get into the property market. MyLoans Tweed Coast Mortgage Broker Greg Mason said there are a range of grants and opportunities available to help would-be home owners buy a property. In the past, the commonly held wisdom was that you could not get into the market without a 20 per cent deposit, but according to Greg that’s not true. “Normally you need a minimum deposit of five per cent,” Greg said. “The majority of lenders will lend up to 95 per cent of the value of the property as long as you meet the criteria. “I’m talking about the whole spectrum of lenders from first tier lenders, the big four banks, second tier lenders like Bank West, Suncorp, BOQ and Macquarie Bank and third tier specialty lenders like Liberty, Resi or Pepper Money that accommodate particular needs. “Certain lenders will go up to 99 per cent.” According to Greg, some lenders will also include mortgage insurance in the loan, which takes the lender above the 95 per cent threshold. “It needs to be saved over a minimum of a three month period
because you have to show a consistent saving pattern,” he said. “People are taking money out of super to buy property, but then they can’t use it because it hasn’t been genuinely saved. “There are specialty lenders that will allow you to use nongenuinely saved funds like lump sums from super, the sale of an asset or gifted funds but it’s a bit more expensive.” Greg said he doesn’t recommend people withdrawing super without getting financial advice first. “That’s just my personal opinion, but I would highly recommend you talk to an accountant or financial advisor so you are fully aware of the consequences and can make an informed choice,” he said. “Super is your future, you are affecting your potential lifestyle in retirement and people underestimate the impact that will have on their final balance.” Another area that can be problematic for lenders is monthly expenses. “Monthly expenses are scrutinised quite deeply at the moment,” Greg said. “Monthly expenses are set according to a Housing Expenses Matrix (HEM) which is the average household spend per person. “That’s an average for the income you earn, which can
Open homes
be substantially more than you actually spend, but you can’t do anything about it because it is a set rate.” If you want to know whether you qualify for a housing loan, a mortgage broker can do an assessment like a financial institution can. “Rather than go on a calculator from the internet, a broker uses the same calculator as a credit assessor who makes the decision on whether you get the loan or not, but you can’t go through a credit assessor,” Greg said. The NSW First Home Owners Grant of $10,000 is still available for anyone who has never had financial interest in a property before in Australia. “It has only ever been for brand new turnkey homes, home and land packages or off-the-plan purchases and the number of applicants is uncapped,” he said. “The NSW government also offers first-time buyers an exemption from stamp duty, though you do pay registration and transfer fees, but that can save you thousands.” On Sunday, November 29, the federal government also announced an extension of the HomeBuilder scheme. Set to end on December 31, it is now open until March 31, 2021, “The HomeBuilder was $25,000, but it’s been dropped to $15,000,” Greg said.
“That’s for a new turnkey home, a home and land package, or a substantial renovation with a minimum spend of $150,000 to a new increased maximum of $950,000. “Contracts must be signed by the end of March and construction must start within six months of signing the contract.” There is also the federal government’s First Home Loan Deposit Scheme (FHLDS). “That’s where the government becomes your guarantor and it saves the cost of mortgage insurance which can be expensive,” Greg said. “If I bought a house in NSW for say $650,000, I’d pay around $25,000 in fees for stamp duty and transfer fees for example, but if you’re a first-time buyer you would pay about $292 because of the stamp duty exemption. “That’s the mortgage registration and transfer fee, so you’ve saved about $24,700. “If you use the FHLDS on that $650,000 loan, you would also save $17,000 in mortgage insurance. “That’s based on a specific lender, but you can get an idea of the savings; you could save up to $40,000 on that mortgage.” Greg said despite the high prices of houses in the Tweed Shire, there is potential to qualify for multiple grants. “You could get the FHLDS, the Great Start grant, the
11/30 Lanham Street, Coolangatta, 12pm-12:30pm 1/42-44 Thomson Street, Tweed Heads, 12pm-12:30pm *All open homes are listed in NSW time Raine & Horne Ocean Shores/Brunswick Heads/ Murwillumbah: Saturday, December 12 37 Warwick Park Road, Sleepy Hollow, 9am-9.30am DJ Stringer: 2135 Tweed Ultima Stuart St, Tweed Heads, 10:30am-11am 47 Andrew Avenue, Pottsville, 9.30am-10am 2122 Tweed Ultima Stuart St, Tweed Heads, 12pm-12:30pm 37 Warwick Park Road, Sleepy Hollow, 10.30am-11.30am
MyLoan Tweed Coast Mortgage Broker Greg Mason
HomeBuilder for a new home or house and land package, pay no mortgage insurance and no stamp duty.” Greg said mortgage brokers match the lender to your needs. “Some lenders give benefits to first-home owners like discounted insurance or insurance you can add on top of your mortgage,” he said. “If you know a broker, give them a call; we all want to help you.”
4 Namoi Glen, Ocean Shores, 10am-11am Schmith Estate Agents: 10 Yolanta Drive, Tugun, 10:30am-11am 6/13 Cabernet Court, Tweed Heads Sth, 12pm -12:30pm Ray White Rural Murwillumbah: 7 Tweed Valley Way, Condong 10am-10.30am 77 Back Creek Road, Tyalgum 11am-12pm
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