First Home Buyers

So, you’re looking to buy your first home?

We can help with that.

We understand this is an exciting, yet big step to take and one that comes with many questions; Particularly when it comes to finance.

Where do we come in?

  • We help you secure finance to purchase your first home

  • We provide you real choice, looking to find you the the most suitable loan

  • We work with multiple banks which means you have access to hundreds of products, instead of being limited to one bank’s product offerings.

  • We negotiate & liaise with the bank on your behalf (no sitting on the phone for hours on end!)

  • We do the hard work for you from start to finish – so you can think about more exciting things, like planning that big house warming party!

woman doing research on laptop in living room
Image is of a living room with a couch, lamp, windows. Its a big room with lots of natural sunlight. We offer a variety of services to assist first home buyer, home buyer, construction loans, investment loans and refinancing.

What on earth does a Mortgage Broker do?

Let’s set the scene… Imagine the time has come to fly the coop, move out of your rental or take that next big step with your significant other. Cue house hunting — how exciting!

But before you get too excited, chances are you will need to apply for finance first before you can move into your first home.

That’s where we come in. Think of us as the “middle man” between yourself and your chosen bank. Simply put, we deal with the bank on your behalf to arrange your home loan.

We work with you to understand your financial situation and then evaluate loan options that are appropriate for your needs. Unlike the banks, we have a duty to act in your best interest, so you can be confident our recommendations will be tailored to you.

We will step you through the process from collecting relevant documentation required by the bank, to submitting and managing your finance application, all the way to settlement and beyond, all while keeping you updated at every stage.

Here to support you every step of the way

This should be one of the most exciting times of your life and the team at Achievement Finance will help take all of the complications and frustrations out of the finance process, so that you can move into your new property quicker.

Whether you are looking to build, buy off the plan or move into an established home, we have all of your finance needs covered; no tricks, no dramas – just a proven track record that you can trust.

You may be eligible for a First Home Owner Grant (or FHOG for short).

The FHOG is a one-off payment of up to $10,000 for eligible applications from people buying or building their first new home.

This grant may be available to Australian citizens or permanent residents, and there are no income or assets tests to qualify for the FHOG.

Contact us now to find out more about the eligibility requirements in WA and how much grant money you could potentially receive.

Questions?

We have answers.

A mortgage broker is a licensed professional who serves as an intermediary between borrowers and lenders. They assess the financial circumstances of borrowers and connect them with suitable mortgage products offered by various lenders. Brokers facilitate the mortgage application process, offering personalised guidance and assistance to help clients secure competitive loan terms tailored to their needs.

While both mortgage brokers and finance brokers assist clients in securing loans, there are key differences in their areas of expertise. Mortgage brokers specialise in sourcing home loans, assisting clients with purchasing or refinancing residential properties. On the other hand, finance brokers provide a broader range of financial services. On top of mortgage loans, they also provide assistance with personal loans, car loans, business loans, and equipment financing.

$0. Our services come at no cost to you – This is because we are paid a commission by the bank of your choice once your loan has settled. This means you benefit from our expertise and support without an additional out-of-pocket expense.

In the (very) rare event that a fee-for-service is required, we will notify you upfront.

Yes, contacting a mortgage broker before you begin house hunting is recommended! Doing so allows you to gain valuable insights into your borrowing capacity and the mortgage options available to you. By understanding your financial situation, you can establish a realistic budget and confidently explore properties within your price range. This proactive approach not only streamlines the homebuying process but also puts you in a stronger negotiating position when making offers on properties.

The amount of deposit required to buy a home typically depends on several factors, including the purchase price of the property and the lender’s requirements. Generally, most lenders require a deposit of at least 20% of the purchase price. However, there are options available for borrowers with smaller deposits, such as utilizing lender’s mortgage insurance (LMI). It’s essential to consult with a mortgage broker to determine the deposit amount needed based on your individual circumstances and to explore available options tailored to your needs

A very brief overview, just so you get the gist.

  1. Financial preparation: Assess your finances, including saving for a deposit and speak to a mortgage broker
  2. Property search: Identify your preferences and criteria for a home, then research properties that meet your needs.
  3. Property inspections: Attend open houses or arrange private viewings to inspect potential properties.
  4. Making an offer: Work with your real estate agent to make an offer on a property that aligns with your budget and preferences.
  5. Contract & conveyancing: Review and sign the contract of sale, and engage a settlement agent to handle legal aspects of the purchase.
  6. Finance approval: Finalise your mortgage application and secure formal approval from your lender.
  7. Settlement preparation: Coordinate with your settlement agent to finalise the purchase and transfer ownership of the property.
  8. Move-in & settlement: On settlement day, pay the remaining balance and collect the keys to your new home.
  9. Post-purchase: Settle into your new home (house-warming!), arrange any necessary repairs, and update your address with relevant parties.

Here is a list of some of the documents required to apply for a home loan (But don’t worry, we’ll guide you through as these documents are required throughout the process!)

• Proof of identity: Valid driver’s license, passport, or government-issued ID.
• Proof of income: Recent payslips, tax returns, and employment contracts.
• Bank statements: Typically covering the last 3-6 months to verify savings and financial stability.
• Employment details: Confirmation of employment from your employer, including length of employment and salary.
• Proof of address: Utility bills, rental agreements, or other official documents showing your current residence.
• Property documents: Contract of sale, property valuation report, and any related documents from the seller.
• Financial details: Details of assets (e.g., savings, investments) and liabilities (e.g., debts, loans).
• Credit history: Your credit report, providing insight into your borrowing and repayment history.
• Other income sources: Documentation for additional income sources, such as rental income or investments.
• Any additional documents requested by the lender to support the loan application.

Finance Terminology & Jargon

Explained. Simply.

A lender is an institution that provides funds to borrowers (that’s you) with the expectation of repayment. In the context of mortgages, lenders typically include banks, credit unions, mortgage companies, and other financial institutions.

An interest rate is the percentage charged by a lender to a borrower for the use of borrowed funds, expressed as a proportion of the principal loan amount. The interest rate directly impacts the total amount of interest paid over the life of the loan, thus influencing the overall cost of borrowing.

Interest rates can be fixed, meaning they remain constant throughout the loan term, or variable, meaning they can fluctuate based on market conditions.

Borrowers with higher credit scores and stronger financial profiles typically qualify for lower interest rates, while those with lower credit scores may be offered higher rates to compensate for the increased risk to the lender.

A  product refers to a specific loan or financial product. Products include different features such as fixed or variable interest rates, loan terms, repayment options, and additional benefits like offset accounts or redraw facilities.

Products are designed to accommodate borrowers, from first-time homebuyers to property investors.

Understanding the features and terms of different lender products is essential for borrowers when comparing options and selecting the most suitable loan for their individual circumstances (*hint hint*, that’s where we come in – we help you compare and understand the most suitable product for you).

Borrowing capacity refers to the maximum amount of money a lender is willing to lend to you based on your financial circumstances, including income, expenses, assets, liabilities, and credit history.

Lenders assess borrowing capacity to determine the amount they are comfortable lending to borrowers while ensuring they can comfortably meet their loan repayments. Understanding your borrowing capacity is essential when considering buying a home, as it helps you determine a realistic budget and choose loan options that align with your financial goals and capabilities.

Serviceability refers to your ability to comfortably meet your loan repayments based on your income and financial commitments.

Lenders assess serviceability by comparing a borrower’s income to their existing expenses, including living costs, debts, and other financial obligations. The goal is to ensure that borrowers have sufficient income to cover their loan repayments without experiencing financial hardship.

Ultimately, demonstrating strong serviceability increases the likelihood of loan approval and provides confidence to both borrowers and lenders in managing their financial obligations responsibly.

Lenders Mortgage Insurance (LMI) is a type of insurance that protects lenders in the event that a borrower defaults on their mortgage loan and the sale of the property doesn’t cover the outstanding loan balance. It is typically required for home loans where the borrower has a deposit of less than 20% of the property’s purchase price. LMI allows borrowers with smaller deposits to access home loans, as it mitigates the risk for lenders by providing a financial guarantee against potential losses. The cost of LMI is usually paid by the borrower and can be included as part of the loan or paid upfront. It’s important to note that LMI solely benefits the lender and does not provide any coverage or protection for the borrower.

Stamp duty, also known as transfer duty or conveyance duty, is a tax levied by state and territory governments in Australia on the sale or transfer of certain assets, including real estate properties. The amount of stamp duty payable is typically calculated as a percentage of the property’s purchase price or market value and varies depending on factors such as the property’s location, type, and value. Stamp duty is payable by the buyer and must be paid within a specified timeframe after the property transaction is completed. It’s an essential consideration for homebuyers as part of the overall cost of purchasing a property.

A fixed-rate mortgage is a type of loan where the interest rate remains constant for an agreed-upon period, usually between one to five years. This means that your repayments remain the same each month, providing certainty and stability. In contrast, a variable-rate mortgage has an interest rate that can fluctuate over time in response to changes in the market. Variable-rate mortgages may offer flexibility and the potential for lower interest rates initially but can result in fluctuations in repayment amounts over the loan term.

Principal & Interest (P&I) refers to the two components of a mortgage repayment. The principal portion of the repayment goes towards paying down the original loan amount, while the interest portion covers the cost of borrowing money.

In the early years of a mortgage, a larger proportion of the repayment goes towards paying interest, with the principal portion gradually increasing over time. This results in a gradual reduction of the loan balance. P&I repayments ensure that the loan is fully repaid by the end of the loan term.

Loan-to-Value Ratio (LVR) is a financial term used by lenders to assess the risk of a mortgage loan. It represents the ratio of the loan amount to the appraised value or purchase price of the property, expressed as a percentage.

For example, if you’re buying a property valued at $400,000 and you’re borrowing $320,000, your LVR would be 80% ($320,000 / $400,000 * 100).

LVR is an important factor for lenders because it helps them determine the level of risk associated with the loan. Generally, the lower the LVR, the less risk for the lender, as there is more equity in the property. Borrowers with lower LVRs may be eligible for lower interest rates and may not be required to pay Lenders Mortgage Insurance (LMI).

Ready to buy your first home?

We’re here to guide you through the process from start to finish.