QCS First Home Buyer Finance

Your Path to Homeownership

We understand that buying a home is a big financial decision. Without the right knowledge, it can be tough to make the right decisions. That’s where we come in.

As a trusted finance broker, we specialise in guiding first-home buyers through the complex world of home financing. Our experienced team is here to provide you with the knowledge, support, and expertise you need to navigate the process with confidence. We’ll help you understand your options, secure the best financing, and ensure you make informed decisions every step of the way. With QCS by your side, you can turn your dream of homeownership into reality.

As a first-time homebuyer, you may be eligible for the First Home Buyers Grant. Queensland Capital Solutions can provide you with guidance on this government initiative, helping you understand the eligibility criteria and assisting you in accessing the grant. We’re committed to supporting you throughout the process, ensuring you receive the benefits you’re entitled to.

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Basic Mortgage Concepts

Interest Rates The interest rate is the percentage charged by a lender for borrowing money, representing the cost of borrowing. It determines the amount of interest a borrower must pay on top of the principal loan amount. Interest rates can vary based on factors such as the type of loan, market conditions, and borrower’s creditworthiness.
LVR LVR, or Loan-to-Value Ratio, compares loan amount to property value for collateral. It is expressed as a percentage and helps lenders assess the risk associated with a loan.
LMI LMI is also known as Lenders Mortgage Insurance. A type of insurance that protects the lender if a borrower defaults on their home loan. It is typically required when the borrower has a deposit of less than 20% of the property’s value, and the premium is paid by the borrower.
Genuine savings Genuine savings show a borrower’s ability to save for a home purchase, held in a bank account or investment. It serves as evidence of financial discipline and stability when applying for a home loan.
Credit Score A credit score is a numerical representation of an individual’s creditworthiness. It is based on their credit history and financial behaviour, like payment history, credit utilisation, and length of credit history. Lenders use credit scores to assess the risk of lending to a person and determine their loan terms.

What Home Loan Types are Available?

Variable rate loan with a variable-rate home loan, the interest rate fluctuates with market conditions, which means it can go up or down over the life of the loan.
Fixed-rate loan With a fixed-rate home loan, the interest rate is locked in for a specific period, typically between 1-5 years. This provides stability as your repayments remain the same, regardless of changes in the market interest rates.
Interest only loan With an interest-only loan, you only pay the interest component for a certain period (usually 1-5 years). This can help reduce your initial repayments but does not reduce the principal amount.
Guarantor loan Involves having a family member, usually a parent, offer their property or savings as additional security for the home loan. This can help borrowers who may not have a sufficient deposit. The guarantor becomes legally responsible for repaying the loan if the borrower defaults.
Low doc loan A low-doc loan caters to self-employed individuals or small business owners who lack standard income documentation, like tax returns. Instead, borrowers are required to provide alternative documentation. Such as bank statements, BAS, or an accountant’s declaration, to verify their income.
Line of credit loan A line of credit loan allows you to access funds up to a specified credit limit. You can use and repay the funds as needed, like a credit card. The interest is typically variable, and you only pay interest on the amount you use.
Non-conforming loan Non-conforming loans are for borrowers who don’t meet traditional lenders’ criteria. This may include individuals with a poor credit history, irregular income, or unique circumstances. Non-conforming loans typically have higher interest rates and stricter terms compared to standard home loans.

Unlocking Opportunities: Exploring Government Grants & Schemes for First Home Buyers

QCS can help home buyers by providing guidance and support throughout the grant application process.

QCS can assess your eligibility for government grants, help you understand the requirements, and assist with the necessary documentation. Our experienced team will then explore your financing options and any additional assistance programs. Ensuring you make informed decisions and maximise your chances of securing the available grants. QCS simplifies the complex process of accessing government grants, making your home-buying journey more seamless and efficient.

Queensland First Home Owners’ Grant

The Queensland First Home Owners’ Grant is designed to give a much-needed boost to first-time home buyers, assisting them in entering the property market sooner. If you meet the eligibility criteria, you’ll receive a generous $30,000 towards the purchase or construction of your new home.

The grant extends its coverage to encompass new houses, units, and townhouses, and it even offers the flexibility to buy off the plan or opt for building your dream home. With this financial support, aspiring homeowners in Queensland can take a step closer to fulfilling their homeownership dreams and embarking on an exciting new chapter in their lives.

Are you Eligible for Queensland’s First Home Owners’ Grant?

To be Eligible for the First Home Owners Grant You must be;

  • Buying or building a new home
  • Valued at less than $750,000 (including land and any contract variations)
  • You must be 18 years or older
  • Must be the first residential property owned in Australia

The home must not have been lived in or sold as a place of residence at the time of completion, could be a;

  • House, Unit, Duplex or Townhouse; or a Granny flat built on a relative’s land
  • Home that has been moved from one site to another (including kit homes or modular homes)
  • Home in a manufactured home park
  • Substantially renovated home

must be one of the following eligible transactions;

First Home Buyers Guide

Buying your first home is an exciting milestone, yet it can also be a daunting task. Here is a step-by-step guide to assist you in navigating the process smoothly.

Assess your Finances:

Analyse your budget, income and expenses. Are you paying too much in rent, could buying your own property work out better?

Save for a Deposit:

Set a savings goal and create a plan to accumulate enough funds for a deposit. Consider various options like government schemes or assistance programs.

Get Pre-Approved for a Mortgage:

Contact us to obtain pre-approval, which confirms your borrowing capacity. This helps you narrow down your home search within your budget.

Define your Needs & Wants:

Make a list of your requirements for a home, including location, size, amenities, and features. Prioritise these to guide your search.

Start House Hunting:

Attend open houses, view properties, and compare them against your criteria. Take notes, ask questions, and visualise yourself living in each potential home and consider it’s future use as an investment property when it’s time for you to upgrade.

Make an Offer:

When you find the right property, work with your agent to submit a compelling offer. Consider factors like market conditions, comparable sales, and seller motivations. At QCS we are more than happy to offer advice in structuring your offer.

Conduct Inspections & Due Diligence:

Schedule a professional home inspection as a building and Pest report is likely to uncover any issues. Review the contract documents with your conveyancing solicitor and order any relevant reports on the property.

Secure Financing:

QCS will finalise your mortgage application including any required valuations and FHOG applications with the lender.

Settlement:

QCS will go through all loan paperwork with you and assist you with finalising for loan for settlement. Once the paperwork has been checked by the lender they will notify us and your solicitor that settlement is ready to be booked. Your solicitor will ensure settlement takes place on the due date and your done. Congratulations, you’re a homeowner!

Remember, this is a simplified overview, and the home-buying process can be more complex and involve additional steps depending on the circumstances. Working with professionals, such as real estate agents and mortgage brokers, can provide valuable guidance throughout the process.

Home Loan Documents

When applying for a home loan, you will need to provide documents to the lender. While specific document requirements may vary depending on the lender or your individual circumstances, here are some common documents you may need to provide.

  • Identifications documents -Drivers Licence, Passport, Birth certificate
  • Proof of income -Payslips, Financial Statements, Tax returns, contracts
  • Proof of assets & Liabilities – Statement of financial position
  • Employment verification- Contracts, Employment agreements.
  • Proof of savings – Bank Statements
  • Proof of Gen Savings – Rental ledger, Bank Statements
  • Property documents – Contract of sale or Rental agreement
  • Other supporting documents – Depending on your individual situation, there may be a need for supplementary documents. These may encompass divorce or separation records, statements of rental income, or financial statements related to your business if you are self-employed.

It’s very important to note that this is a general list, and the specific documents required may vary. We recommend consulting our QCS brokers to grasp the precise documentation required for your home loan application.

Download Our Free Guide

Our Get Finance Ready Guide is free to download to provide you handy finance tips on how to be best prepared and avoid the pitfalls that cause delays in finance approvals.

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FAQ

How can you purchase your first home?

There are several approaches you can take to buy your first home. We highly recommend seeking assistance from a QCS Finance Broker. We can guide the State Grants you qualify for and assist with your home loan application. Talk to an expert today!

How much is the first homeowners grant QLD?

As a first home buyer in Queensland, you may qualify for the $15,000 First Homeowner Grant (FHOG) provided by QCS. This grant can significantly contribute to your initial home deposit, but certain conditions must be met. Contact us today to see if you’re eligible.

First homeowners grant QLD eligibility.

To be eligible for the First Homeowner Grant in Queensland, you must meet the following requirements:

  • You must be a natural person (not a company or trust) who is 18 years of age or older.
  • You need to be an Australian citizen or permanent resident, or you can apply with someone who meets these criteria.
  • You should be a permanent resident or an Australian citizen.
  • Neither you nor your spouse should have previously received a First Homeowner Grant in Australia.
  • You must not have previously owned a property in Australia that was your primary residence.
  • However, if you have owned an investment property that you didn’t live in, you may still be eligible for the First Homeowner Grant in Queensland.
  • You must live in your initial home for at least 6 months within a year of acquiring ownership.

How to apply for first homeowner grant?

Applying for the First Homeowner Grant in Queensland is a straightforward process, and your QCS broker can assist you with the necessary paperwork.

Are First Home Buyers in Queensland Eligible for Stamp Duty Exemptions?

As a first home buyer in QLD, you may qualify for exemptions on stamp duty, which can result in significant cost savings.

If you are purchasing vacant land to build your first home and the land cost is $400,000 or less, you won’t have to pay any stamp duty.

For first homes valued up to $500,000, you are also exempt from paying stamp duty.

Furthermore, there may still be some savings on stamp duty if your first home costs between $500,000 and $550,000. However, these savings no longer apply if the cost of your first home exceeds $550,000.

What are the benefits of using a mortgage broker when purchasing your first home?

Utilising a mortgage broker streamlines the home-buying process. They offer access to a range of lenders, provide expert advice, and assist with paperwork, increasing the likelihood of securing favourable loan terms.

Are there other government incentives or programs for first home buyers in Queensland?

Yes, besides the First Homeowners Grant, Queensland offers the First Home Loan Deposit Scheme, providing eligible buyers with support to purchase a home with a deposit as low as 5%.

How much deposit do I need as a first-time homebuyer in Queensland?

Generally, a deposit of at least 5-10% is recommended, though the exact amount depends on various factors, including the lender’s requirements.

Can I use the First Homeowners Grant as part of my deposit?

Yes, in Queensland, the First Homeowners Grant can be used as part of your deposit, assisting first-time homebuyers in achieving the necessary upfront costs.

Get in touch with us

At QCS we understand the importance of being flexible so we give you the power to set your own appointment. Monday to Saturday from 7am to 7pm.

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