How Can I Finance A Custom Home?
Buying a home is single largest purchase most Australians make. With the median house price in Melbourne eclipsing $1 million in2022, it can be tough to imagine how you as a first home buyer will be able to afford the purchase. There are options available, however, which can help you get into the market and several Government benefits which have come into effect recently may alleviate the burden somewhat. In this blog edition we answer the question: “How can I finance a custom home?” and provide insight into how first home buyers can begin their journey towards home ownership.
Home Loans
Home loans are available from all major lenders as well as small banks and with the Reserve Bank of Australia promising not to raise interest rates in the near future, it’s assuredly a good time to buy. There are several online mortgage aggregators in the market which compare home loan rates and ensure you can find the best deal on the finance you need to build your custom home. Mortgage brokers too can often help you find the best loan for your situation. You will need a deposit to secure the loan and there are other fees involved, like stamp duty, lender’s mortgage insurance (LMI) and tax, yet, depending on your financial circumstances, you should be able to find a loan that is right for you.
Guarantor Loans
If you don’t have the full deposit you need to buy your first home, you may ask your parents or other family members to become guarantors on your loan. This means they put down the equity they have in their home as collateral to subsidise the deposit and help you acquire a home loan. The majority of banks offer guarantor loan options, so if you’re struggling to put together a deposit, ask your parents!
Government Incentives
The Australian Federal Government has recently reduced stamp duty to 50% for first home buyers who purchase property before June, 2022. The Government has also decided to remove stamp duty entirely for home buyers who buy property which has been on the market for more than 12 months. In addition to this, the Commonwealth Bank have announced they will open additional places for first home buyers to purchase property under the Federal Government’s First Home Loan Deposit Scheme. Successful applicants can receive finance to buy their home with a deposit as little as 5% without paying any LMI.
Contact UHomes Living Today
If you are interested in building a life in Melbourne, contact U Homes today for a professional consultation. We have been building and selling custom homes in Melbourne for more than 10 years now and offer a wide range of tailor-made solutions for first home buyers looking to enter the market. We are available to speak to you from Monday to Friday, 9:00am to 5:00pm. Contact our friendly consultants on 03 9048 5737 today or reach out via our contact page to ask about how we can help you build the home of your dreams.