Are you thinking of settling down and starting a family? In purchasing a property, you must think about your long-term plans. Whether you want to have your own space or choose to build your own family, getting a home is always the first step. Now, if you are a first-time home buyer, it is understandable that the process can get confusing sometimes.

Applying for a first home loan deposit scheme can help you purchase your dream home. The First Home Loan Deposit Scheme (FHLDS) initiative by the Australian government is designed to help first-time purchasers by providing a guarantee that will allow eligible low and middle incomes to purchase a home with a deposit of as little as 5 per cent.

Who Are Eligible for the First Home Loan Deposit Scheme (FHLDS)?

If you are having second thoughts about applying for a first home loan deposit scheme and are curious if you are eligible, we list the eligibility requirements to have a first home loan grant.

The primary prerequisites for eligibility are:

You and your spouse or partner must be Australian citizens.

Only first-time buyers are eligible for this loan deposit scheme.

Your taxable income in the most recent fiscal year cannot exceed $125,000 or $200,000 if you apply jointly with a spouse or partner.

After purchasing a property, you must reside there.

The highest property acquisition price must be less than the NHFIC’s threshold cap.

Remember that you are only qualified to get the Government Guarantee once.

What Property Can You Buy Under the First Home Loan Deposit Scheme?

an existing home, apartment, or townhouse

a land and home combination

land and a separate construction contract

a home

a townhouse or flat that is not yet built

How to Apply for It?

Participating Lenders

NHFIC has approved a panel of 32 participating lenders to offer the program. The Australian Military Bank, Bank Australia, Police Bank, Regional Australia Bank, and Indigenous Business Australia are some non-major lenders. The Commonwealth Bank and NAB are the two largest lending banks.

Only a participating lender or authorised agent may submit applications for first mortgage company home loans. Home purchasers and those assisting them should consider speaking with a participating lender and getting independent financial and legal advice before deciding whether a particular home loan or property and the HGS terms meet their needs.

Before engaging in a home loan agreement, homebuyers should consider speaking with their lender (or broker) about the possible effects of increasing interest rates or home prices on specific circumstances.

Deposit Is Necessary

Homebuyers need a deposit of 5% to 20% of the value of an eligible property that they are purchasing to be eligible for the first home loan deposit scheme. The FHBG requires a minimum deposit of 5%, but participating lenders may request a larger percentage deposit depending on a borrower’s specific financial situation.

Homebuyers should consult with a participating lender to determine whether a deposit comprises actual savings for their lending criteria and the FHBG.

Homebuyers should also check with their Participating Lender to see if they can count any financial awards they have received from other Australian government, state, or territory programs toward their savings.

Wage Thresholds

An individual who earns $125,000 per year or less, or a couple earning $200,000 together, is eligible for the program. It must be shown on the Notice of Assessment issued by the Australian Taxation Office.

How Can Key Strategy Solutions Help You?

Key Strategy Solutions specialises in broking services. We have a team to help you with your first home buyer loan in Sydney. When you work with us, you experience the following services:

We Handle Your Paperwork

Many requirements and prerequisites are involved in applying for a first home loan deposit scheme. Key Strategy Solutions can help you sort out the paperwork and submit it to the lender of your choice.

We Point You in the Right Direction

We are partnered with over 20 credible lenders in Sydney, all of whom are well-versed in home loans. Key Strategy Solutions and our lenders provide above-standard services and offers.

We Find the Best Loans for You

Our expertise, combined with the connections we have with our partner lenders, can prove highly beneficial to first-time home buyers out there. Best first home buyer loan deals? You can bet on us to deliver in no time.

Our Lenders

As trusted loan brokers, we know the credit criteria of 20 lenders and over 200 products. We can ascertain the right loan to best suit your needs and grow with you by working with you.

Our specialised staff is committed to assisting first-time homebuyers in realising their goals of building a home by offering excellent prices to complement the numerous government grants available.

If you wish to have a hassle-free application for your first home loan deposit scheme, trust us to guide you. Do not hesitate to send us a message to learn more about first home buyers’ loan in Sydney and our services.

For most people, a mortgage is the most significant investment they will ever make. Choosing the right mortgage broker is essential when dealing with such an important deal. If you are trying to find a reliable mortgage broker in Sydney, you might wonder how you will know if the broker you chose is competent and qualified to help you.

Making sure you are talking to competent home loan brokers in Sydney is essential yet tricky. At Key Strategy Solutions, we list some qualities and characteristics that you should look out for in the best mortgage broker in Sydney.

Have Your Best Interests in Mind

You might be looking for a new mortgage if you’ve located the house of your dreams and it passes the home inspection process. You can hunt for a home loan and acquire one with the assistance of a broker. A skilled mortgage broker can frequently streamline the process and make it less complicated and confusing, thanks to their knowledge and experience. However, be wary of the broker rushing to close the deal. They don’t have your best interests in mind; they only care about getting a rapid closing to satisfy their commercial needs.

Keen Attention to Details

The mortgage application process can be challenging, particularly when navigating the different financial transactions and programs. Unfortunately, crucial information may slip through the gaps if you’re working with a broker who isn’t on top of things.

You want to work with a mortgage broker in Sydney with attention to detail and the ability to close a loan fast while interviewing candidates. They should receive excellent marks for being approachable and accessible via phone calls and emails.

A list of testimonials from previous customers and vendors might give you an idea of what other people think of them and whether you should do business with them in the future.

Honesty and Straightforwardness

Some brokers might try to overpromise and underdeliver to get a deal. Thankfully, you don’t have to engage with a broker who uses a bait-and-switch tactic to gain clients. Look for a straightforward and trustworthy person. A professional home loan broker in Sydney will be honest about your credentials if you have poor credit or excessive debt.

Competent Prices

Ask your lender to compete with other people in business who are providing low rates if you’re getting a loan through a mortgage broker. Your request will, at worst, be declined. In the ideal case scenario, your broker will be competitive and obtain your desired statistics.

Transparency in Terms of Broker Fees

Many brokers put a lot of effort into earning their money. If your broker is reliable and honest, they will be open about the compensation they will receive from your deal. People who are wary and withhold them might be concealing something.

Knowledge in Business and Industry

The market is constantly evolving. The local market in your area should be well known to a good mortgage broker. Additionally, they ought to be up to date with contemporary business trends. Finding a market-informed person helps stop deals from going through last-minute loan cancellations.

Receive Expert Advice and Quality Lending Solutions

Key Strategy Solutions operates in Sydney, New South Wales, with lending experts and mortgage brokers that help our clients reach their goals. Our growing team comprises car loan, mortgage, and home loan brokers in Sydney.

Our excellent customer service and expert advice allow our clients to find tailored solutions to their needs and requirements.

You’ll have access to our full-service, complimentary mortgage brokerage program when you work with us. We will find the best offer for you by comparing the hundreds of loans we handle. You can choose from our services, so you never have to worry about passing up opportunities.

If you are interested in our lending solutions, do not hesitate to send us a message.

According to research, the average lifespan of a car once produced is around eight years or the equivalent of 240,000km of driving. As the value of cars depreciates rather quickly, it seems only logical that a number of first-time car buyers are gravitating toward used cars rather than purchasing a far more expensive car. A great way to step into your dream car at a competitive price without the significant depreciation in the first three years of ownership is buying used cars.

Fortunately, getting a loan for a used car is now possible if you can’t pay it in cash upfront. Let’s explore the concept of used car loans and how second-hand car finance can get you your own car.

How to get a loan for a second-hand car

The process of getting a loan for a second-hand car starts with the usual research and comparison phase to find the most competitive loan terms. Look around for car loan deals with the most attractive rates for the funds you’re applying for. If you’ve found the best possible financial terms, ready your application with the lender.

Then it’s time to finalise the agreement upon pre-approval. The process is really no different than what you would experience with getting a loan for a new vehicle. There may be some extra steps, depending on the age, make, and model of the vehicle.

In general, older vehicles are subject to a more extensive history check. This is to ensure they have not been involved in an accident that the seller may not have informed you of. Once everything is set, the lender will give its official approval of both the vehicle you’ve chosen and your ability to pay the elected loan amount.

The funds will either be transferred directly to you or to the seller that you’ve selected. The used car is yours to enjoy without any strings attached once the balance of the loan and the interest rates have been paid to the lender.

Tips on how to secure a second-hand car loan

There are quite a few lenders in the Australian market. While most of them will finance used cars, you need to consider that not every lender has the same criteria when it comes to what second-hand vehicles they would finance. Now that we’ve established how the process of getting a used vehicle loan works, let’s go over the things to consider when getting a loan.

Below are some helpful tips on how to secure a loan for a used car:

1. Set a budget

Prior to looking for a used vehicle, you have to set the amount you’re willing to pay. As of late, the market for used cars has been red hot as prices went through the roof. You want to head into the market with a dollar amount you won’t go above budget for but will save you money and make your search far more efficient and hassle-free.

Most lenders will have to assess the borrower’s financial circumstances first. They will reject second-hand car finance applications if they deem the borrower incapable of paying the elected loan amount within the loan term. So, when shopping for used vehicles, always set a budget.

2. Get pre-approval

Another great way to budget when searching for a used vehicle is getting pre-approval for a used car loan. While it’s not a guaranteed amount a lender will let you borrow, it can give you an idea of how much they may lend you. This way, you can streamline the whole process as you won’t have to look outside of your price range and make financial compromises.

3. Pick a car

This is arguably the most enjoyable part of the buying process: picking a car. You might get ahead of yourself if you immediately have a sentimental attachment to the vehicle, though. Always bear in mind that all necessary checks should be done prior to purchasing the car to make sure that it is roadworthy.

Financiers will compare the price you’re paying for the vehicle against the market value, which is calculated by an industry guide. They won’t consider these factors when calculating the loan-to-vehicle ratio or LVR. A high ratio indicates a higher risk they wouldn’t be able to recover all of the money they loaned you even if they had to repossess and sell the vehicle.

4. Decide on a loan type

Used car loans are charged at a fixed interest rate. The interest rate is locked in for the loan term (which is usually no more than seven years), and you have the guarantee your repayments won’t change in that period. This provides cash flow certainty.

You can access a variable rate interest when looking to buy a used vehicle. This is economically advantageous as you can make additional repayments and pay down your loan faster. Also, your lender may have the option to add a redraw facility.

With all of this being said, it’s crucial to decide on which loan type best suits your needs. You can discuss your options with a professional to help you make an informed decision. These are the loan options you can choose from:

• Secured car loan
• Unsecured car loan
• Dealership finance
• Novated lease

5. Speak to a loan professional

Generally, an older vehicle will be harder to sell. This is why financiers have age restrictions for secured loans. For example, the car should be no more than 12 years old at the end of the loan term.

Depending on the type of vehicle and the overall strength of the application, these restrictions can sometimes be negotiated on a case-by-case basis with some lenders. Some financiers will flat out refuse to offer a secured car loan for any used car and only allow finance for used cars from dealerships. It can be helpful to speak to a professional to ensure you’re able to get the loan and interest rate you’re after.

Getting a loan for a used car?

Get professional assistance to find the right lender that would cater to your proposed purchase and your financial circumstances. Partner with Key Strategy Solutions to increase your chance of approval and ensure you get the best deal. Contact us so we can assist you with your used car loan application.

Home loan interest rates are currently sitting at historic lows following the economic consequences of COVID-19. Holding the cash rate at 0.10%, the Reserve Bank of Australia has indicated that they do not expect lifting it any time soon. As a result, lenders are pushing down their mortgage interest rates, which is a great sign for borrowers.

The changing landscape is the perfect opportunity for borrowers to review their current home loans. They should evaluate whether it is still the most suitable choice for their personal needs and financial circumstances. To take advantage of these low rates and save money in the long run, borrowers are advised to consider refinancing their home loans.

Refinancing Home Loans: At a Glance

For the uninitiated, you must have questions like, “What is refinancing home loans, and how does it work?” It is the process of replacing your existing home loan with a better option. This is done either by changing home loan products or moving to a different lender.

Refinancing a mortgage can help improve a borrower’s financial situation in many ways. For one, a borrower can get a loan with a lower interest rate. It also gives the borrower an opportunity to add better features more tailored to their situation.

Refinancing also improves the borrower’s financial situation by reducing mortgage repayments and combining existing personal debts such as credit cards, personal loans, and car loans. Also, a borrower gets to have access to the equity in their home.

Reasons to Refinance a Home Loan

Now that we’ve established what refinancing is, let’s get to the top reasons why you may want to refinance your home loan. As a rule of thumb, it’s important to periodically check up on your loan and not view it as a one-and-done deal, regardless of the housing market’s trends or the economy. Bear in mind that your personal circumstances may evolve as years go by.

Your income may rise or decline, or you may want to undertake home renovations. Perhaps you may even purchase another property. These circumstances are a great opportunity for you to reassess and update your home loan.

You may have to pay more if you set and forget your loan. For all you know, your existing bank may offer sharper pricing while their competitors provide cheaper and more suitable options. You don’t want to fall into paying a lazy tax or the extra costs you pay on your existing debts because you have not kept up with the latest offers in the marketplace.

So, if you’re looking for a better interest rate or new features and add-ons such as loan splitting, redraw facilities, and flexible repayments, then go ahead and refinance your loan. If you want to use the equity in your home to renovate, then it’s a good enough reason to refinance your loan.

Should I Really Refinance My Home Loan?

To support the points above and to help you make an informed decision, it’s worth mentioning that refinancing mortgage is ideal if you’re coming to the end of a fixed-rate term. This is when you can get a more flexible home loan or a better interest rate. Refinancing also works if you’re looking to consolidate debts into your mortgage so you can easily manage your finances.

Should you want to access the equity in your home and use those funds to invest in property, shares, or other wealth-building opportunities, refinancing your home loan may provide you with potential tax benefits. Ultimately, the choice is up to you and your current financial situation.

How Should I Refinance My Home Loan?

In this section, we’ll walk you through the process of refinancing an existing home loan.

Assess your home loan

The first step to refinancing mortgage is assessing your current loan. Think about what you like and don’t like about how your loan is structure and provide a benchmark against which to compare other offers. This makes it easier to find the right loan for your needs.

Consider the strengths of your current home loan, like the things you like about your current lender. Do they offer a great online experience? Perhaps you like being able to access banks.

Figure out what works for you to help you determine what to look for in a new lender. Also, know the types of interest so you can decide if you should move from a variable to a fixed interest rate. Lastly, understand your options before making a decision.

Compare home loans

At this point, you probably already know what to look for. That means you can now start comparing loans. You can do this with the help of a qualified mortgage broker.

Mortgage brokers will use their experience, market knowledge, and connections to help you find a home loan that is most suitable to your needs. The great thing about working with a mortgage broker is that they may be able to offer more tailored recommendations if you can share your financial situation.

Calculate the costs

The next step is to research any fees you may need to pay to exit your current loan. Also, read about any upfront costs associated with your new loan. If you need to work out exactly how much it will cost you to refinance your home loan, then tap the services of a mortgage broker.

Whether you’re refinancing with the same lender or moving to a new one, the fees may not be the same. Your current lender may be able to waive some of the fees if you’re staying with them.

Apply for a loan

You will then need to make an application to your lender once you’ve chosen a new home loan. You can do this over the phone, in a branch, or via your broker. If you’re using mortgage broking services, your broker will work on the application on your behalf.

House valuation

Suppose your application is now pre-approved. Your lender will then perform a valuation on your property to determine how much it’s worth. This process typically takes up to a week.

Approval

You will then receive a mortgage contract pack once your application has been formally approved. This pack includes mortgage contracts, direct debit forms, terms and conditions booklet, mortgage of land forms, and a discharge form.

Key Strategy Solutions: Refinancing Home Loans Made Easy

Regardless of your needs, Key Strategy Solutions is here to help you find the best loan for you. We will guide you through the entire refinancing process to save you both time and money. Consult our team for more options on refinancing mortgage.

Buying a home can be a minefield. Many first-time homebuyers make a number of mistakes because there is simply too much information to process and too many important decisions to make. The following seven tips can serve as a beginner’s guide to property investing. Of course, it would be best t to reach out to a local mortgage broker in Sydney to get in-depth insights. But for now, these tips should help you get started on your path to a smooth home ownership journey.

1. Choose a property you can afford.

Purchasing a home is often the most expensive investment you will make in your lifetime, so it is critical to start off on the right foot. Consider properties that you can actually afford when purchasing your first home; this will help you pay off your mortgage faster and ensure you are not living above your means.

But living within your means does not also imply that you should choose the cheapest loans out there. Instead, look into properties that fit your lifestyle and income for the next years to come. Getting a cheap loan upfront might even cost you more in the long run.

2. Get a reasonable home loan.

When applying for a mortgage loan, it is critical to conduct extensive research and weigh the costs of how much you can actually borrow. Considering how much money you may be eligible for; it may be difficult to stay on track and within your budget. This will ensure that you can repay your debts on time and avoid financial insecurity in the future.

3. Save as much as you can for the deposit.

When saving for a down payment on your first home, it’s critical to have a good savings pool. However, it may be difficult to know where to begin. Here are a few ideas that can help you get started the right way.

Combined Income

First, add the combined income that you and your partner make each month (that is, if you are purchasing the property with a partner). This will help form your household budget and provide clarity on how much money you can work with each month. This sum must include:

• Wage or salary payments
• Return on share investments

Household expenses

The next step is to make a list of your household expenses. This list should include all monthly expenses such as rent, bills, payments, recreational activities, and any other relevant activities. When choosing a home loan, it is recommended that your repayments do not exceed 25% of your monthly take-home pay. This will ensure that you can pay off your mortgage comfortably and without undue stress while still living your desired lifestyle.

Track your spending

Tracking your spending can help you better understand your spending habits throughout the month. There are a number of excellent apps available, including Money Brilliant, Pocket Book, and Spendee, that consolidate all of your monthly expenses in one place. This gives you a better idea of where you can save money and where you can cut back, such as subscriptions, going out to eat, or purchases you may not need right now.

4. Know how much you are allowed to deposit.

There is a common misconception among buyers, believing that they need a 20% down payment for a mortgage. This is not always true. With Lenders Mortgage Insurance, you can make a smaller down payment (LMI). LMI is a one-time insurance premium paid by the borrower. This is used to protect the lender from any loss if the borrower is unable to pay their home loan.

LMI allows you to buy a better home that would otherwise take longer to save for. LMI can be paid in advance as a lump sum or added to your mortgage.

5. Consider what the home loan offers, not just the rates.

Before deciding on which Sydney mortgage loan to take out, it is critical to consider a few factors that will affect how much you pay back over time.

Variable vs Fixed Rate

A variable interest rate can change at any time and is frequently linked to Reserve Bank decisions on the national cash rate. This means that the amount of interest you pay back on your loan can fluctuate over the course of its life. A fixed interest rate means that it will not change during the fixed rate period. However, this may imply that you are missing out on a lower rate if variable rates fall.

Terms for your loan

When choosing a home loan, it is critical to consider the loan’s repayment terms. This can have a significant impact on how you pay for your mortgage. Simply put, the shorter the loan term, the higher the repayments will be for each scheduled payment, and the longer the term, the lower the repayments will be for each scheduled payment. Borrowers typically look to borrow for a period of 15-20 years, giving them plenty of time to pay off their mortgage.

Early repayments

Most buyers will look for ways to pay off their mortgage in lump sums. However, in order to retire the loan before its expected completion date, this feature must be enabled within their loan.

Repayment frequency

Buyers can choose how frequently they pay back their loan when selecting a home loan. Because each buyer’s circumstances are unique, it is best to select a schedule that you are most comfortable with. Payments can be made weekly, fortnightly, or monthly.

6. Consider the other costs associated with buying a new home.

When purchasing a new home, there are a number of costs that are frequently overlooked. These expenses include:

Stamp Duty

Stamp duty is a tax levied by each state and territory on real estate transactions. It is important to note that the amount of stamp duty varies by state and is determined by a number of factors. This includes the property’s value, whether the property will be your primary residence, and your own residency.

Transfer Fee

Transfer fees are paid when the buyer acquires ownership of the property. Depending on the property, this can range from a few hundred dollars to a few thousand dollars.

Mortgage Registration Fee

A mortgage registration fee is the amount paid by the buyer to register the mortgage in their name.

Legal/Conveyancing Fees

A conveyancer or solicitor is usually the best person to handle this step. This will ensure that you are protected by all legal aspects when purchasing a new home.

Mortgage Application Fees

In addition to repaying your loan, you will need to pay the loan application setup fees. Depending on the lender, this transaction fee may be waived.

Inspection Fees

Inspection fees are one of the most important and costly steps in purchasing a home, especially if the property is older. It is critical that you do not skip this step and that you select a reputable provider.

It is best to sit down with a credible mortgage broker in Sydney and take a moment to discuss all these in more detail. But if you don’t know where to start, that’s where we at Key Strategy Solutions can step in.

For more questions, be sure to reach out to Key Strategy Solutions today.

The list of things that you need to know before taking out your first mortgage goes on and on. The best solution would be to find people who can recommend steps that are specific to your unique situaiton. Need more help in finding the best mortgage broker in Sydney? Key Strategy Solutions can help you with that. Contact us.