Buying your first home is one of the most important decisions you will make in your life as it affects so many aspects of your life. It can be very exciting and daunting at the same time. ADNA Financial Services have access to hundreds of loans from a wide variety of lenders to help you purchase your first home.

What ADNA Financial Services will do for you:

Below are some common questions answered for home buyers (click + sign for more information):

• How much money can I borrow?

  This amount varies from lender to lender and depends on a number of factors. The amount you can borrow also varies from person to person and is dependant on individual circumstances. Give ADNA Financial Services a call on (02) 8006-5323 or Email Us about your situation and we will complete some calculations for you so we can provide you professional guidance.

• How do I choose the loan that’s right for me?

  Loan types and loan features will give you a good idea of the main options available, however, there are hundreds of different home loan products available, and individual circumstances are all different. For more information click the following links to read about the different Types of Home Loans and Home Loan Features. Alternatively call us on (02) 8006-5323 or Email Us to take a look at your options.

• How much do I need for a deposit?

  The minimum deposit is usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale.

  The ideal amount of deposit is 20% or above to avoid paying Mortgage Insurance.

  If you can’t organise a deposit in time, your conveyancer/solicitor may be able to arrange a deposit bond until settlement – although you’ll have to pay extra for this. If the deposit requested is 10%, your conveyancer may be able to negotiate this down to 5%.

• How much will regular repayments be?

  There are many different factors that can influence the type of loan that will suit your needs. Give ADNA Financial Services a call us on (02) 8006-5323 or Email Us to discuss further. We can complete some calculations for you and provide you with an estimated amount of what your regular home loan repayments can be.

• How often do I make home loan repayments – weekly, fortnightly or monthly?

  Most lenders offer flexible repayment options to suit your pay cycle. It is best if you aim to make weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan. Most people try and line up when they make their repayments to coincide with their pay cycle.

• What fees/costs should I budget for?

  There are a number of fees involved when buying a property. To avoid any surprises, below is a list that sets out all of the usual costs:

  Stamp Duty – This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself.
  Legal/conveyancing fees – Generally around $1,500 – $2,000, these fees cover all the legal rigour around your property purchase, including title searches.
  Building inspection – This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  Pest inspection – Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  Lender costs – Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. This amount varies from lender to lender and is dependant on the product you choose. Allow approximately $600 to $800.
  Moving costs – Don’t forget to factor in the cost of a removalist if you plan on using one.
  Mortgage Insurance costs – If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
  Ongoing costs – You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Also ensure you have enough contents cover should you need to replace everything if the worst happens.

Contact Us

If you have any questions call us on (02) 8006-5323 or Email Us to set up an appointment.