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How to Find the Best First Home Buyer Home Loan?

How to Find the Best First Home Buyer Home Loan

Are you a first-home buyer? Looking for the right home loan type? If yes, then you can get the right information on home loan options from this blog. By reading this blog, you’ll come to know what the best first home buyer loans are available that you can get to buy your first home. It is obvious that owning a home is an exciting as well as overwhelming experience. However, if you seek help from a reliable home loan broker, then buying your first home journey will become stress-free. In today’s blog, you will get information regarding a home loan for first-time home buyers. Let’s get started:

What is First Home Buyer Home Loan?

A home loan is an amount of money given by a bank or other financial institution to help you buy your residential property. A home loan is a loan designed to help first-home buyers to purchase their first home and take their step into their first home sooner. Home loan brokers work as an intermediary between first-time home buyers and lenders. They help the client to get the best deal and discount. A wide range of deals and offers are available on home loans, and first-time home buyers who are applying for a home loan can get the best deal by seeking help from a mortgage broker.

What is the Best First Home Buyers Home Loan?

As a first home buyer, you may want to know how to find the best  home loan for first home buyer. Well, it completely depends on your personal financial circumstances. Most commonly, the following types of interest rates and repayments are available on home loans. A home loan broker can help you choose the right option after considering your financial circumstances:

  • Home Loan Interest Rate Types
    • Variable-rate home loans As the name suggests, variable-rate home loans can go up or down when the lending market changes. This is a common first buyer home loan interest rate type. 
    • Fixed-rate home loans As the name implies, fixed-rate home loans stay fixed for a specified time period (for instance, five years). The rate then reverts to a variable interest rate. 
    • Split-rate home loans Split-rate home loans are a combination of fixed-rate and variable-rate home loans and enable you to choose what percentage of your loan has a variable rate and what percentage of your loan has a fixed one. 
  • Home Loan Repayment Types
    • Principal and interest home loans When you choose principal and interest rate home loan, it means when you repay, you pay a portion of the principal along with the interest on that amount.
    • Interest-only home loans In interest-only home loans, the part of interest is paid off, not the principal for the first 1 to 5 years of a loan before it goes to P&I repayments.
  • Determine Your Deposit Size

If you have a bigger deposit size, it means your monthly repayments are likely to be lower, and it will also make it easy for you to get a home loan approved. However, we can help you buy your first home with only a 5% or 2% deposit, but conditions may apply.

What Documents Do You Need When Applying for a First Home Buyer Home Loan?

When you apply for a home loan as a first home buyer, lenders will ask to see documents that will prove your identity. They will want to know your financial situation when deciding how much you can borrow, and for this reason, they will ask to see documents such as bank statements to verify your savings and income.

How much can you Borrow for a First Buyer Home Loan?

When you apply for a home loan when buying your first home, brokers will consider your borrowing capacity. It helps in describing the amount of money you may borrow depending on some factors such as your expenses and income, how much you have a deposit as well as any debts you may have. If you want to know your borrowing power, you can use Star Homeloans’ borrowing power calculator.

Conclusion

If you want to find the best home loan for buying your first home, then you can get help from reliable home loan brokers. They will assess your financial conditions and help you choose the right home loan product. You can get in touch with Home Star Home loans as we have helped several clients to buy their first home with a minimum deposit. If you want to buy your first home with as little as a 5% or 2% deposit, you can contact us. However, conditions may apply so to get detailed information, reach us.

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