5 Frequently Asked Questions from First Home Buyers

As one of Australia’s most recognisable new home builders, Dixon Homes offer exceptional value for money and quality new homes at prices that are attractive and affordable for first home buyers. We understand that the process of buying a home can be daunting however taking the property plunge will ultimately help you secure your future. There are many questions first home buyers have and below are some of the most common asked by home buyers when it comes to buying, building or financing their new home.

1.     How much can I borrow?

This largely depends on the amount you can contribute as your deposit, your income, if you have a guarantor, which lenders you work with and other assets you may have. Instead of the question being how much you can borrow, it should be how much should you borrow so you are not overcommitting yourself. Some lenders may allow you to borrow more than you may need which can cause undue financial pressure when making repayments.  There are many online calculators which can give you a rough guide of what you can borrow based on your financial capacity.

2.     Do I need mortgage insurance?

Mortgage insurance protects the lender rather than the buyer. If you are borrowing more than 80 per cent of the home’s value it is required that mortgage insurance is taken out. Depending on how much over 80 per cent of the value you are borrowing will depend on the premium to be paid.

3.     Are there any government grants or concessions available?

Most Australian States and Territories offer incentives and generous grants for first home buyers to buy a new home. In NSW First Home owner grants of up to $15,000 dollars are available to go towards the purchase of a new home. There are also transfer duty concessions in NSW available. To find out more about eligibility requirements, click here.

Incentives also exist for buyers to buy off the plan in a new development. Not only does this mean significant savings in stamp duty, it also gives the benefit of time to buyers to save a larger deposit and get the best deal on finance. Only 10 per cent of the property price is required upon purchase and the rest is paid on settlement when the property is completed.

4.     Do I need a site inspection before building?

If you are building a new home on land you own, your builder will require a site inspection. This is required to determine aspect of the land, determine locations of existing utility infrastructure and how connections to the property will be designed and laid as well as other factors of the site which can influence the build, how the home is designed and the way it is oriented on the block of land.

5.     Can my builder help me with Finance?

Yes. Dixon Homes work with a number of different lenders and have finance brokers who can source the suitable loans for you as well as accountants for investors who can help you access the best possible tax benefits.

We understand there are many more questions that you will be likely to have, so don’t hesitate to call our office today on 1300 10 10 10 and our friendly team can provide more advice for first home buyers, and other groups of buyers interesting in buying a new home in the beautiful Sydney region.