Australian Government Benefits for Buying Your Home
Help to Buy: The Government contributes up to 40% (new Home) or 30% (existing Home) so you can buy with a smaller deposit and a smaller loan. Deposits from 2%. No LMI.
First Home Owner Grant (FHOG): A grant to buy or build your first new Home. Varies by state.
First Home Guarantee (FHBG): Buy your first Home with a lower deposit. 5% deposit, no LMI.
Family Home Guarantee: For single parents. 2% deposit, no LMI.
First Home Super Saver Scheme: Save your deposit inside your super with tax benefits.
Stamp Duty Concessions: Reductions or exemptions on stamp duty for first home buyers. In NSW: properties up to $800,000 → Stamp duty = $0
Key terms to understand your Home loan
LVR (Loan to Value Ratio): Percentage of your Home’s value that you are borrowing. A lower LVR = less risk for the bank.
LMI (Lenders Mortgage Insurance): Insurance that protects the bank when your deposit is under 20%. With programs like Help to Buy or First Home Guarantee, you don’t pay LMI.
Borrowing Capacity: The maximum amount a bank considers you can borrow. It’s the foundation for knowing how much you can afford. Calculated based on: your income, expenses, debts, dependants, rate buffers, and each lender’s internal policies.
Serviceability: Your real ability to repay the loan according to the bank’s criteria. Includes income, expenses, debts, lifestyle, and interest‑rate stress tests. It’s the heart of the credit assessment.
Fixed Rate: A fixed interest rate for a period (1–5 years). Stable and predictable repayments.
Variable Rate: A rate that can go up or down depending on the market. More flexibility to make changes or extra repayments.
Split Loan: Combines stability + flexibility. Your loan is divided into two parts: one fixed, one variable.
Offset Account: A bank account linked to your loan. The money you keep there reduces the interest you pay.
Redraw Facility: Allows you to withdraw extra repayments you’ve made. Works like a “buffer” inside your home loan.
Repayment: Your periodic payment (weekly, fortnightly, or monthly). It can be Interest Only, or Principal + Interest
Pre‑Approval: An initial estimate from the bank of how much you could borrow. Helps you search for your Home with more clarity.
Conditional Approval: The bank approves your loan subject to meeting certain conditions. A key step before final approval.
Unconditional Approval: The bank’s final approval. The green light to move toward settlement.
Settlement: The day the Home is transferred to your name and the bank releases the funds. It’s when you officially receive your Home.
Equity: The portion of your Home that is truly yours. It grows as you repay your loan or as the property value increases.
Stamp Duty: State tax when buying a Home. In NSW, first home buyers are exempt up to $1,000,000.
Conveyancer / Solicitor: The professional who manages the legal side of the purchase. Reviews contracts, coordinates settlement, and protects your interests.
Valuation: A report on the property’s value prepared by an independent valuer. The bank uses it to confirm the price is reasonable.
Principal & Interest: You pay interest + part of the principal. Your debt decreases over time.
Interest Only: You pay only interest for a period. Lower repayments, but the principal doesn’t decrease.
SMSF (Self‑Managed Super Fund): A superannuation fund you manage yourself that, under ATO rules, can be used to buy an investment property. Helps build property wealth inside your super.
Bridging Loan: A temporary loan to buy a new Home before selling your current one. Useful during transitions.
Refinance: Switching your loan to another bank or product to improve conditions. Can reduce your rate, repayment, or increase flexibility.
Equity Release / Cash Out: Using part of your Home’s equity to access funds. Used for renovations, investments, or debt consolidation.
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Build Invest Grow Pty Ltd ACN 600 599 255 and Diego Quintero Jaramillo CRN 574612 are authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192
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