Home Loan

Whether it’s buying your first home, upgrading or investing, property ownership is still part of the Australian dream. Wherever you’re at in life, we can help you turn that dream into reality.

Sell first or buy first?

It’s a common home buying dilemma. The benefits of selling first are that you'll know exactly how much you'll have to spend and won’t have to manage the costs (or repayments) of both properties. The cons are that you may be up for rental costs and two lots of moves which can be expensive. Plus, if it takes you a while to find a new property, there is a risk of prices going up while you’re out of the market.

If buying first, you can ensure you don’t miss out on your dream home. But if the market slows, it could take you more time to sell and you may end up accepting a lower price because you are more desperate to sell.

Here are some of your options

  • Negotiate a longer settlement – this will give you more time to find the right property.
  • Consider a bridging loan – this is an interest only loan on the new home for up to 12 months so you can buy before you sell. You’ll need to be able to afford both lots of repayments.*
  • Find alternate accommodation – rent, stay with friends or family are all possible options.
  • Consider a Deposit Bond – this is simply a guarantee that the deposit will be paid on settlement of the current home.

 

 

Get pre-approved

Getting a pre-approval for your finance is an important step you should take before you go house hunting. It basically means that subject to validating your application details via supporting documents such as payslips and statements, and conducting a valuation on the property, you are eligible for and can afford the loan.

Why get a pre-approval?

It shows that you are a serious buyer so real estate agents may prioritise you over other buyers. Plus, some sellers may view buyers with pre-approved finance as deals that are less likely to fall over.

It gives you more confidence when putting in an offer and gives you a clear idea of your budget. That means no time wasted on properties you can’t afford or feeling dejected if you’re knocked back for something you can’t afford.

Finally, once you have put in an offer and it has been accepted, you’ll find you’re already half way to a formal approval which means you may be able to move faster. A pre-approval will generally last around 3 months.

 

First home buyer?

Buying your first home can be an exciting time. And at Community First, there are a number of ways we could help you get in to a place of your own sooner:

You may only need a 5% deposit

We allow you to borrow up to 95% of the property value.^ Lenders' Mortgage Insurance (LMI) will apply but you can add this cost to the loan, provided you aren't borrowing any more than 98% of the property value.

Take advantage of the First Home Loan Deposit Scheme (FHLDS)

The FHLDS is an Australian Government initiative to allow eligible home buyers access to a home loan with 5% deposit with the added benefit of a guarantee so lenders' mortgage insurance is not payable, which helps to reduce the costs for home buyers.

Ask a parent or in-law to guarantee your loan

With a guarantee in place from a parent or in-laws, you could avoid paying lenders' mortgage insurance, and you may be able to borrow 100% of the purchase price.**

 

^Some restrictions apply. **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. By providing a guarantee, the guarantor's ability to borrow funds may be reduced. CFCU requires guarantors to obtain independent legal advice. 

Costs to consider

When buying a home there will be some costs you expect to pay and others that may surprise you, these could include:

  • Your deposit - typically, this is 20%. You can buy with less deposit however lenders' mortgage insurance may apply.
  • Stamp duty – this varies state to state and will also change according to the price that you purchase your home for. You can calculate how much you may need to pay by using our stamp duty calculator.  
  • Solicitor’s and/or conveyancing fees
  • Pest and building inspections
  • Real estate agent fees if you are selling your current home
  • Moving costs – can include storage and removalists. Some people even need to purchases boxes. 

Please bear in mind that this is only a general guide and shouldn’t be taken as financial advice. 

The right home loan

Choosing the right home loan is an important decision. After all, your home loan could be around a long time so it has to evolve with you. When choosing the right home loan, think about both your current and future needs.

Fixed or variable?

If you like the idea of your repayments not changing for a period of time, are concerned about rising interest rates, or simply like predictability to make budgeting easier, you may find a fixed rate home loan appealing.

Alternatively, if you expect interest rates could drop or to pay out the loan sooner, a variable rate home loan may be better for you. Others may opt to have the best of both worlds and split the loan so part of it is fixed and the other part is variable.

Which features are important to you?

Don't pay for features you don't need. Consider whether you'll be making extra repaymens or want the flexibility to pay it off early. Think about whether you want an offset account with a debit card linked or not and whether you want to be able to access redraw.

What will your repayments be?

You can calcuate the repayments on the loan using our loan repayment calculator. You can enter different terms and interest rates to see if you can afford the repayments.

How to apply
Get a pre-approval today
Sell first or buy first?

It’s a common home buying dilemma. The benefits of selling first are that you'll know exactly how much you'll have to spend and won’t have to manage the costs (or repayments) of both properties. The cons are that you may be up for rental costs and two lots of moves which can be expensive. Plus, if it takes you a while to find a new property, there is a risk of prices going up while you’re out of the market.

If buying first, you can ensure you don’t miss out on your dream home. But if the market slows, it could take you more time to sell and you may end up accepting a lower price because you are more desperate to sell.

Here are some of your options

  • Negotiate a longer settlement – this will give you more time to find the right property.
  • Consider a bridging loan – this is an interest only loan on the new home for up to 12 months so you can buy before you sell. You’ll need to be able to afford both lots of repayments.*
  • Find alternate accommodation – rent, stay with friends or family are all possible options.
  • Consider a Deposit Bond – this is simply a guarantee that the deposit will be paid on settlement of the current home.

 

 

Get pre-approved

Getting a pre-approval for your finance is an important step you should take before you go house hunting. It basically means that subject to validating your application details via supporting documents such as payslips and statements, and conducting a valuation on the property, you are eligible for and can afford the loan.

Why get a pre-approval?

It shows that you are a serious buyer so real estate agents may prioritise you over other buyers. Plus, some sellers may view buyers with pre-approved finance as deals that are less likely to fall over.

It gives you more confidence when putting in an offer and gives you a clear idea of your budget. That means no time wasted on properties you can’t afford or feeling dejected if you’re knocked back for something you can’t afford.

Finally, once you have put in an offer and it has been accepted, you’ll find you’re already half way to a formal approval which means you may be able to move faster. A pre-approval will generally last around 3 months.

 

First home buyer?

Buying your first home can be an exciting time. And at Community First, there are a number of ways we could help you get in to a place of your own sooner:

You may only need a 5% deposit

We allow you to borrow up to 95% of the property value.^ Lenders' Mortgage Insurance (LMI) will apply but you can add this cost to the loan, provided you aren't borrowing any more than 98% of the property value.

Take advantage of the First Home Loan Deposit Scheme (FHLDS)

The FHLDS is an Australian Government initiative to allow eligible home buyers access to a home loan with 5% deposit with the added benefit of a guarantee so lenders' mortgage insurance is not payable, which helps to reduce the costs for home buyers.

Ask a parent or in-law to guarantee your loan

With a guarantee in place from a parent or in-laws, you could avoid paying lenders' mortgage insurance, and you may be able to borrow 100% of the purchase price.**

 

^Some restrictions apply. **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. By providing a guarantee, the guarantor's ability to borrow funds may be reduced. CFCU requires guarantors to obtain independent legal advice. 

Costs to consider

When buying a home there will be some costs you expect to pay and others that may surprise you, these could include:

  • Your deposit - typically, this is 20%. You can buy with less deposit however lenders' mortgage insurance may apply.
  • Stamp duty – this varies state to state and will also change according to the price that you purchase your home for. You can calculate how much you may need to pay by using our stamp duty calculator.  
  • Solicitor’s and/or conveyancing fees
  • Pest and building inspections
  • Real estate agent fees if you are selling your current home
  • Moving costs – can include storage and removalists. Some people even need to purchases boxes. 

Please bear in mind that this is only a general guide and shouldn’t be taken as financial advice. 

The right home loan

Choosing the right home loan is an important decision. After all, your home loan could be around a long time so it has to evolve with you. When choosing the right home loan, think about both your current and future needs.

Fixed or variable?

If you like the idea of your repayments not changing for a period of time, are concerned about rising interest rates, or simply like predictability to make budgeting easier, you may find a fixed rate home loan appealing.

Alternatively, if you expect interest rates could drop or to pay out the loan sooner, a variable rate home loan may be better for you. Others may opt to have the best of both worlds and split the loan so part of it is fixed and the other part is variable.

Which features are important to you?

Don't pay for features you don't need. Consider whether you'll be making extra repaymens or want the flexibility to pay it off early. Think about whether you want an offset account with a debit card linked or not and whether you want to be able to access redraw.

What will your repayments be?

You can calcuate the repayments on the loan using our loan repayment calculator. You can enter different terms and interest rates to see if you can afford the repayments.

*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.