Exploring government grants and rebates
Regardless of whether you need a deposit to buy a house or to buy land, there may be government grants available for you to explore. The great news is, you may be eligible for one or more than one depending on the state you want to buy in.
Any grant is subject to strict eligibility criteria. Your financial advisor will be able to advise you.
Current government grants include:
Dealing with lenders
Government grants could not only boost your deposit savings, they may also help you negotiate a better deal from your lender. Geoff Wood, Director of My First Property Finance, says larger deposits often mean lower interest rates. This is because lenders may see you as representing a lower risk, which boosts your bargaining power.
But even if you can’t get a grant or tax concession, you may still be able to negotiate a competitive rate direct from a lender, even if your savings are close to the minimum deposit for a home loan. Your financial adviser will be able to provide more detailed information.
‘There are some banks that charge the same rate whether they’re lending 80 per cent or 95 per cent of a property’s value,’ says Geoff. ‘That’s just one reason why it’s so important to have a licensed credit adviser working to get the best deal for you.’
Understanding other costs
Before you develop a savings plan, make sure you have considered all possible extra costs involved with buying a house.
These can include:
With a full picture of the costs involved, you will be able to set a savings target. There are a number of budget planning calculators that can help you save what you need.