1. You may only need to save 5% deposit.
Not all lenders give you the option to buy with just 5% deposit. At Community First, you could buy your first home with just 5% deposit. For apartments, you may need a larger deposit, depending on the age and location of the apartment.
2. You may not need to save for Lender’s Mortgage Insurance (LMI).
If you don’t have more than 20% deposit, you’ll need to pay (LMI). This protects the lender in the event your home is sold and there is a shortfall in the sale price and the loan amount owed. We’ll let you add this cost to your loan, so long as your loan plus LMI doesn’t exceed 98% of the property value.
3. Avoid Lender’s Mortgage Insurance if you can get someone to guarantee your loan.
If you get someone to guarantee your loan, then you won’t need to pay mortgage insurance as the guarantor takes on the risk usually covered by LMI. Conditions apply^.
4. No low deposit premiums.
Unlike some lenders, we don’t charge you a higher rate because you have less of a deposit. Our first home buyer interest rates are highly competitive so you can rest assured you’ll be getting a great value loan.
What is Lender’s Mortgage Insurance?
This is a once off premium you pay to protect the lender in the event the property is sold (which can happen for a number of reasons) and there is a shortfall between the net sale proceeds and the amount required to pay out the loan. This premium can be added to the loan if you don’t want to pay it upfront.
What is the LVR?
The Loan to Value Ratio (LVR) is the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan, as determined by a valuation completed by Community First.
What first home buyer benefits are available?
You may be eligible for stamp duty exemptions. Go to firsthome.gov.au for more information on stamp duty exemptions in your state.
What other costs do I need to consider?
You may also need to pay application, valuation and legal fees associated with your home loan application however these are typically added to the loan.
You may also need the service of a solicitor or conveyancer to assist you with the purchase of your property. This can cost an average of $2,000 or more.
^ The guarantor should consider the risks associated with the guarantee, primarily that if the borrower defaults on their loan, the guarantor is liable to pay the maximum of the portion of security they have put forward as a guarantee. CFCU recommends guarantors obtain independent legal advice.
Credit eligibility criteria, terms & conditions, fees & charges apply.
This information is general advice only and does not take into account your objectives, financial situation or needs (your "personal circumstances"). Before deciding whether to buy any product, you should consider your personal circumstances. You should read and consider the Terms and Conditions when deciding to use any product (terms and conditions, fees and charges may apply). Our product Conditions of Use are available at communityfirst.com.au.