First Home Buyer Loan
First Home Buyer Home Loan
Tora Finance helps you enter the property market with confidence, ensuring you take advantage of the first home owner grant and other deals for eligible first home buyers. We are proud to offer our service and expertise across the Brisbane region, making your home ownership dreams a reality. For those who are unsure what a ‘house and land package’ is or need guidance on the fixed rate period of their home loan, we are here to help.
Maintaining relationships with over 50 lenders across Australia, the Tora Finance team understands home loans inside out. We tailor fixed or variable home loans to all our clients, finding a solution that interlocks perfectly with your budget and lifestyle. All of our team members are reliable, professional and flexible, working with your needs to achieve an optimal financial outcome. Best of all, our service is free, so you can contribute more to your home loan while we negotiate a competitive deal.
Expert Brokers For First Home Loans
Did you know that 60% of all mortgages are broker negotiated? Having a quality loan expert on your side will make your money go further, every time. At Tora Finance, we find the best value interest rate and loan duration for all of our clients, so they have peace of mind when purchasing their first property. When you partner with us, there is no downside or risk. Our mission is only to save you money and ensure your home loan continues to work long into the future.
Understanding Principal And Interest Repayments
Principal & Interest Home Loans (P&I Loan)
When you take out a principal and interest loan, you gradually reimburse the amount you borrowed from the lender (principal amount), while also paying a level of interest charged to the loan. With a P&I loan, your repayments occur on a regular basis, usually every week, fortnight or month. This means your repayments are likely to remain stable over a long period of time unless the lender adjusts the interest rate or other ongoing fees.
Interest-Only Home Loans
An interest-only home loan (IO) means you only pay off the interest portion of your loan. Subject to bank approval, you can select interest-only terms from one to five years, before the home loan reverts back to a principal and interest repayment. Although this method is less expensive at the beginning of the loan period, once the principal figure returns to your repayment, the cost increases significantly.
An interest-only loan is popular among property investors, although it can be repurposed for initial payments on someone’s first home purchase. However, as you aren’t paying off the property itself, the life of the loan increases, and subsequently the amount you have to pay off.
What is a comparison rate?
A comparison rate gives the consumer a more accurate insight into how much their home loan costs. This is because a comparison rate also factors in the fees and charges surrounding the loan, not just the interest and principal amount. All good lenders should offer a comparison rate, so you can compare loans across the financial landscape.
Tora Finance advises all of our first-home buyers on what loan structure would work best for them. Talk to our helpful team today to discover more about your home loan options, and how to optimise your financial future.
What Is Lenders Mortgage Insurance?
Lender’s Mortgage Insurance (LMI) is a safeguard used by lenders to insure themselves against the possibility of the borrower not repaying their funds. Although the LMI serves the interests of the lender, you as the borrower will be required to pay this insurance fee which is usually capitalised on top of the total loan funds at settlement - meaning you pay it back in your monthly home loan repayments. The majority of lenders only charge LMI if you borrow over 80% of the total cost of the property. Tora Finance will work hard to find an equitable solution in all areas of your home loan, including the LMI.
Am I Eligible For The Family Home Guarantee Scheme?
The family home guarantee (FHG) is designed to help single parents purchase their first home. Administered by the National Housing Finance and Investment Corporation (NHFIC), the FHG guarantees up to 18% of the value of the property, as well as giving participants the chance to buy a home with only a 2% deposit (with no LMS fees).
As a single parent, if you haven’t previously owned property and earn less than $125,000 per year, you may be eligible for the FHG. Talk to Tora Finance today and discover what loan options work best for you.
Am I Eligible For The First Home Guarantee Scheme?
The home buyer guarantee enables first-time homeowners to purchase a property with only a 5% deposit, while also avoiding Lenders Mortgage Insurance. On top of that, they are guaranteed up to 15% of the value of their property back from the government, as assessed by the participating lender.
Otherwise known as a home loan deposit scheme, this is a fantastic opportunity for first-time home buyers to begin their journey on the property ladder. Tora Finance can guide you through the steps required to participate, ensuring you make the right first-time investment for you and your family.
Need Advice From An Expert Mortgage Broker?
If you are looking for trusted home loan experts or want to learn more about our flexible services, follow the links below:
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