Our current market intelligence does not contain details on the Help to Buy shared equity scheme. However, there are established deposit options for first home buyers looking to enter the Officer and Pakenham markets.
Deposit options in the corridor
A 20 percent deposit avoids Lenders Mortgage Insurance entirely, requiring $120,000 on a $600,000 purchase. Alternatively, eligible buyers can use the First Home Guarantee to purchase with a 5 percent deposit without paying LMI, reducing the required deposit to $30,000 on a $600,000 home.
Budgeting for settlement
Buyers must budget for conveyancing costs between $1,200 and $2,000 and building and pest inspections from $500 to $800. For a $600,000 purchase, the total cash required to settle is approximately $45,000 to $60,000, provided the buyer is eligible for nil stamp duty.
The honest reality
Two rate rises in the past two months have changed borrowing capacity for buyers in the South East. You must obtain an updated pre-approval from your broker rather than relying on one from six months ago.
Questions to consider
- Does your current pre-approval account for the two RBA rate rises from the last two months?
- Is your target property priced under $600,000 to potentially qualify for nil stamp duty?
- Have you budgeted for the $1,200 to $2,000 in conveyancing fees required for settlement?
Talk to KR Peters for a straight-talking appraisal with no obligation.
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Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.