Home buyers

Buying a home is an exciting and daunting time.

Having your finances organised is an essential first step in the home
buying process.

Knowing how much you’re eligible to borrow, what the repayments will be
for various loan amounts, and knowing that a loan approval will be easy
to obtain will give you confidence while you’re shopping around.
Preparation is the key to a successful and smart result.

Court Financial Services will act as your partner in the home buying
process by preparing you with all the information you need.

• We can organise a Pre-purchase Approval so that you know
• exactly how much you can borrow and therefore how much you
• can afford to spend.
• We can provide an outline of costs you need to consider at the
• time of settlement including stamp duty quotes (see below for
• more information).
• We can provide tips along the way to make help save you time
• and hassle (see below for our top ten tips).


What costs should I consider?
In working out how much money you need to have at the time of
settlement, you should consider:

What is Stamp Duty?
Stamp Duty is a tax you must pay whenever you purchase any
property. The actual amount of stamp duty you must pay depends
on the selling price of the property you’re buying. Each state government uses a different set of rules and calculations. Court Financial Service can give you an estimate of the amount of stamp duty you have to pay.
As an example, stamp duty for a Victorian property purchased for
$250,000 is $10,660.

What is the Transfer of Land Fee?
The Transfer of land fee is another charge enforced by the Title Office
to pay for changing the ownership details of the property you are
purchasing on your property’s Title. This fee is calculated based on
the purchase price of your property.

What is Registration of Mortgage Fee?
This is another Titles Office fee which covers the cost of registering
your mortgage on your property’s title papers.

What are Legal/Conveyancing Fees
Once you have purchased a property, it is normal practice to appoint
a solicitor or conveyancer to manage the legal transfer of the property
from the seller to you. Legal and conveyancing fees vary according to
who you use and the type of property you are purchasing. It’s a good
idea to ask for a quote upfront.

What is Mortgage Insurance?
When your loan to value ratio (LVR) is above a certain percent (usually 90%), most lenders require you to take out mortgage insurance. LVR
is your loan amount as a percentage of the purchase price of your
property. Mortgage Insurance is calculated based on your loan amount
and it can be expensive so it is very important to factor it in.

Lender’s application fee
Not all lenders charge an application fee, and not all application fees
are the same amount. Court Financial Services will let you know if an application fee applies to your loan.
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1. Don’t leave your finances to the last minute. Obtain a pre-purchase
....approval as early as possible.

2. Make sure you understand all the costs involved & work out a
....budget. The purchase price of the property is not the only cost.
....There are stamp duty taxes to consider, conveyancer and solicitor
....fees and more.

3. Identify your priorities. Write a list of the features your home must
....have, and another list of the features that you definitely don’t want the
....house to have.

4. Try not to let emotional feelings influence your decisions otherwise
....you may end up paying too much.

5. Be informed. Find out recent sale prices for homes in the areas you
....like to help you form an opinion on what will be a fair market price for
....the properties you’re interested in.

6. Take notes. It’s hard to remember what you did and didn’t like about
....a property you inspected. Start a scrap book of the flyers handed out
....with each property you inspect and make notes on your thoughts.
....Record the auction results.

7. Work out the price you are prepared to pay and stick to it. If you
....are bidding at auction, don’t be influenced by the crowds or auctioneers.
....Have someone else bid for you (to a limit) if you are concerned that
....you will be persuaded to go over budget.

8. Don’t be disillusioned or stressed if you’re the losing bidder.
....Something else will come up and it will be your turn to be the winner
....soon. Look forward, don’t look back.

9. When you’re really interested in a property, drive from it to your place
....of work at the normal time you travel to work to test the traffic
....conditions. If you catch public transport, trial the route.

10. Speak with your solicitor to understand the implications or pro’s
.... and con’s of buying a property with a.particular title. ie Strata,
.... Torrens, Stratum, Company share.

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First Home Buyers Questions:
How much can I borrow & what will my repayments be?
How much you can borrow will depend on your monthly income, your
living expenses and the amount of deposit you have. The exact amount
you can borrow varies from lender to lender. Court Financial Services
can give you an estimate in your initial meeting, and help you determine
a level of repayments that is suitable for your income level and living
expenses.

Repayment amounts vary according to your loan amount and the
interest rate. Court Financial Services can show you different repayment
scenarios to help you determine the level of repayments you can afford.

How much deposit should I have?
Generally you need to have at least 5 - 10% of the purchase price
ready for a deposit, and first home buyers need to be able to show
a savings history of at least six months.

What is the first home buyers grant, do I qualify for it, and how
do I apply?
The First Home Owner Grant is a one-off state government grant of $14,000 (for existing homes) and $21,000 (for new homes) available to first home buyers who intend to live in the home they're purchasing. The money is available at settlement of your loan. Court Financial Services can provide you with the application forms for the First Home Buyers grant.

Generally, to be eligible for the first home buyers grant, you
must meet the following criteria:
• It must be the first time each applicant and their spouse/defacto
• has applied for The First Home Buyers grant in any state or territory
• of Australia.
• The applicants and their spouse/defacto must never have owned
• a residential property - either jointly or separately.
• The applicants must be natural person - ie. Not a company.
• At least one applicant must be a permanent resident of Australia.
• All of the applicants must be occupying the property as their principle
• place of residence within 12 months of either settlement, completion
• or construction.

Applications for the First Home Buyers Grant can be obtained from
Court Financial Services. You are required to complete this application personally.

Some lenders will process First Home Buyers Grant application with
your home loan application. If your lender doesn’t (Court Financial
Services will let you know if this is the case), you will need to send
your First Home Buyers Application to the State Revenue Office for processing.

For more information on the first home buyers grant visit www.firsthome.gov.au