If you are buying your first home and plan to live in it yourself, you can take advantage of the Government's $7,000 First Home Owners Grant.

We can make it easy for you to apply for your Grant as well as arrange prompt payment for you. There are many benefits should you decide to contribute your $7,000 to your home loan. By reducing the overall amount of your loan:

• You can save interest on your loan
• The amount of mortgage insurance you need to pay may be less
• You can reduce your minimum monthly repayments

$7,000 can go a long way!

Here's an example¹:

• If you purchased a home worth $280,000, and borrowed $240,000, your monthly repayments would be $1761.03.
• If you used your $7,000 Grant to reduce your loan to $233,000 this would bring your monthly repayments down to $1,709.67. That's a monthly saving of $51.36 or approximately $11,491 in interest over the life of the loan.
• Alternatively, you could use the $7,000 Grant to help cover the additional costs you need to budget for when buying a home such as stamp duties, legal fees, pest & building inspections.

Are you eligible for the First Home Owners Grant?

If you answer yes to all these questions, then you may be eligible for the $7,000 Grant.

• Will this be the first time each applicant and/or spouse could receive a grant?
• Each applicant and/or spouse has never owned residential property, either jointly, separately or with some other person, prior to 1 July 2000?
• Each applicant and/or spouse has never owned residential property, in which they have resided, either jointly, separately or with another person on or after 1 July 2000?
• Is each applicant a natural person (that is, a person not a company or trust)?
• Is at least one applicant a permanent resident or Australian citizen?
• Will all applicants be occupying the property as their principle place of residence within 12 months of either settlement or completion of construction?
• Has each applicant on or after 1 July 2000 entered into a Contract of Sale or Agreement for the purchase of, or building of, a home? In the case of owner-builders, construction of the home (laying of the foundations) must have commenced on or after 1 July 2000.

Want to talk to us about your Home Loan options?

Book a meeting with one of our lenders, and we'll call you back to set up a time that's convenient for you. A mobile lender can come to you, or if you'd prefer, meet with a lender in one of our branches. If you're not quite ready to meet with a lender, you can still make an enquiry, and we will call you back within 24 hours (or the next working day).

We want to help you into your first home - we can help! Here are some options you may be able to take advantage of.

Suncorp Deposit KickStart

• Use the equity in the home of a family member or friend toward the purchase of your new home.
• Borrow up to 110% of the confirmed value of the property to help cover other expenses (such as fees and duties, removalist costs etc).
• Save money as Lenders Mortgage Insurance is not required.
• Your guarantor can limit their commitment by nominating a specific amount they are prepared to guarantee, to a maximum of 30% of the value of your new home.
• Available only to owner-occupiers.

Here's an example:

The home being purchased is valued at $300,000.

With the Suncorp Deposit KickStart, you could borrow up to $330,000 (110% of $300,000).

Lenders Mortgage Insurance will not be required.

How it works:

• Two loans are set up.
• The first loan is secured by your new home, with the loan amount being 80% of the confirmed value of the property.
• The second loan is secured by your new home as well as a guarantee (limited to a specific amount) supported by a mortgage over the guarantor's property.
• You will be responsible for repayments for both loans.

Low Deposit Options

Borrow up to 95% of the confirmed value of the property².

• You will need to demonstrate a savings record for the remaining 5% and pay all fees and duties.
• Lenders Mortgage Insurance will be required and may be included in loan amount (conditions apply).
• Available to owner-occupiers and investors.

Here's an example:

The property being purchased is valued at $300,000.

You can borrow up to 95% of the value of the property.

Note:

• Minimum of 5% Accumulated Savings is required for First Home Buyers and Subsequent Home Buyers.

• Your savings may not be sufficient to cover the full cost of fees and duties. The First Home Buyers Grant and /or other funds may be used to cover these costs.

Deposit Power Guarantee³

• A convenient way to buy a home without the worries of arranging a cash deposit.
• It's a guarantee to the vendor for part or all of your deposit (up to 10% of the purchase price).
• You then pay the full purchase price at settlement, including the amount of the deposit.
• A fee is payable based on the size of the guarantee you require.  

Other than the actual price of the property you want to buy, there are a number of other costs you need to plan for. Here's a list of additional costs that you may need to consider in your budget.

Stamp Duty

There are two types of Stamp Duty you will need to budget for when purchasing your property.

The first, Transfer Duty, is a state government tax which is payable when a property is transferred. It is calculated on the purchase price of the property and is paid by the buyer. This Stamp Duty name and amount varies between states and territories.

The second, Mortgage Duty, is payable on your mortgage and is calculated on your loan amount. From the 1st July 2008, Mortgage Duty charges have been abolished or altered in some states and territories. For more information, please refer to Office of State Revenue website.

Legal fees

You will also need to consider legal fees. When approaching a firm to do your conveyancing, it is important to understand how their fees are structured, and exactly what they cover.

Generally legal fees quoted will not include the searches that need to be done on a property before purchase. The basic searches can cost approximately $400-$500, and include:

• Contaminated Land Register Search
• Land Tax Search
• Title Search
• Council Rates Search
• Main Roads and Electricity Company Searches

Other searches may be required depending on the location of your property and the information you wish to know about the property. You should seek your own legal advice as to what searches are required and the costs of these searches.

Building and Pest Inspections

Many contracts on houses are signed subject to building and pest inspections. This gives you the opportunity to get the advice from a professional as to the condition of the property you're about to purchase. You should receive both a building and pest inspection report, outlining the current condition of the property, and any issues that you should be aware of. You should read this information carefully and question anything in the report you dont understand to ensure that you still feel comfortable purchasing the home.

Property Valuation

Property valuations give you an independent view on how much the property is actually worth. The bank may require a valuation to be performed on the property, before it can approve your home loan application, but any valuation conducted by the Bank is for Bank purposes only and often is not provided to you. If you're unsure whether the asking price for a property is valid, a property valuation may give you the additional peace of mind you need. Just remember that this may be another cost for you to budget for when purchasing a home.

Lenders Mortgage Insurance

If you borrow more than 80% of the purchase price, you will need to pay mortgage insurance. Mortgage insurance protects the Bank against default of the loan. It is based upon the amount you are going to borrow.

Not all of the above costs may apply to your situation however, they are costs that you should be aware may apply when purchasing a new property.