5 suggestions for first home buyers applying for
                     5 suggestions for first 
home buyers applying 
for a mortgage
www.ospreymortgagelending.com
1. Comprehend what you can borrow
The most straightforward method is to use a mortgage 
calculator.
While a mortgage calculator isn’t exact, it will deliver a 
proper assessment of how much a lender will let you borrow 
and therefore what your budget is when it comes to buying.
You should also take time to make sure you know the 
criteria lenders will take into account when considering 
your loan application, such as your recognition history and 
ability to service a loan.
2. Hold what you can to lessen your 
mortgage
Take advantage of first home buyer subsidies and payments
The good news for first homeowners around most of 
Australia is that the government provides incentives for 
getting into your first home. These include stamp duty 
exemptions or concessions and, in many States and 
Territories, a first homeowners grant.
These benefits tend to be especially generous if you’re 
buying a brand new home under a certain value and can 
make it a lot easier to get into your first home.
3. Get pre-approved
Once you’ve worked out what you want to buy and have an 
idea of how much to borrow, it’s time to get conditional 
approval. This isn’t a firm offer of finance but a statement 
that you should be able to borrow up to a certain amount, so 
long as you can supply information to support the figures 
you’ve based your application on – such as salary, savings, 
assets and expenses – and the value of the home you’re 
purchasing is verified by a professional valuer.
Conditional approval usually lasts for 90 days and can give 
you some certainty in your property search. If you use a 
mortgage broker they’ll generally apply for conditional 
approval on your behalf.
4. Think acquiring for insurance or 
getting help
Most lenders understand that saving for your first home is 
not an easy task. That means they won’t always require you 
to have a 20% deposit before you borrow. Instead, you can 
often obtain a home loan with as little as 5% of the purchase 
price, so long as you also take out lenders’ mortgage 
insurance (LMI). That said, LMI adds to the cost of your 
monthly repayments and may affect how much you can 
borrow. So, if you have a family member willing to help out, 
another alternative may be to use a guarantor on your loan. 
Many lenders now have a partial guarantee, where a family 
member can provide equity to cover your loan only up to the 
amount where you no longer need to take out mortgage 
insurance. This can make getting a home loan both easier 
and cheaper for first homeowners.
5. Take benefit of first home buyer 
subsidies and payments
The good news for first home owners around most of 
Australia is that the government provides incentives 
towards getting into your first home. These include stamp 
duty exemptions or concessions and, in many States and 
Territories, a first home owners grant.These benefits tend to 
be especially generous if you’re buying a brand new home 
under a certain value and can make it a lot easier to get into 
your first home.
Information Source
www.ospreymortgagelending.com