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Buying a Home Vs Renting a House

Buying a Home Vs Renting a House

Stop Renting! There has never been a better time to buy.

If you are a first home buyer then the conditions are ripe for you to stop renting. With Interest Rates at a record all-time low, your opportunity to buy your own home has never been better.

The State Government’s First Home Owner’s Grant can provide you with $15,000 dollars’ assistance available for building a brand-new home, with house and land valued up to $750,000. Click here to find out more about the First Home Owner Grant and buying your first home.

Home Ownership has so many benefits

  • Investing in an asset
  • No dead money on rent
  • No landlord
  • No agents
  • No inspections
  • No rent increases
  • Freedom to plant what you want in your own garden
  • Freedom to interior decorate to your style
  • You decide what floor coverings, wall colour and finishes you want

All you need to know about the First Home Owners Grant

First home buyers in Queensland are eligible for a grant to help them build their first property (this must be brand new, not an established home). The First Home Owner’s Grant is a $15,000 one-off financial grant only available to those buying their first home in Queensland who meet all the eligibility criteria aimed at helping First Home Buyers get onto the property ladder. Eligible recipients must be:

  •  at least 18 years old and an Australian Citizen or permanent resident
  • purchasing a brand-new property under $750,000
  • receiving the grant for the first time

For a full list of the terms and conditions and to find out if you are eligible, please visit the Queensland Government website here.

All you need to know about the First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is a Government-backed initiative to help Australians get into their first home sooner. Basically, to avoid First Home Buyers having to pay for lenders insurance, under the Scheme, part of an eligible first home buyer’s home loan from a participating lender will be guaranteed by the National Finance, Housing and Investment Corporation. This is aimed at enabling first home buyers to purchase a home with a deposit of as little as 5 per cent (lender’s criteria apply). New places have been released, to find out more about the First Home Loan Deposit Scheme and to see if you are eligible, click here.

To read more about how you can use the First Home Loan Deposit to buy your first home at North Harbour, click here.

Useful Terms you might want explained

What does LVR stand for?

The acronym LVR stands for Loan to Value Ratio and is also sometimes referred to as ‘LTV’. The LVR is the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan.

What does LMI stand for?

The acronym LMI stands for Lenders’ Mortgage Insurance and is a one-off insurance payment made by the borrower at the time of the loan settlement that protects the lender.

What is a Fixed Interest Rate?

With a locked in rate your home loan interest rate will remain the same over the fixed rate term (usually 1 to 7 years). Fixed rate loans are generally a great option for first home buyers who are getting used to making home loan repayments or other borrowers who are on a strict budget and need repayment consistency.

What is an Interest-only Loan?

An interest-only loan is a loan that temporarily allows your repayments to only cover interest on the amount borrowed, the principal, for a set period of time.

What is a P&I loan?

A principal and interest loan has repayments of the principal, which is the amount of money you have borrowed from the bank (minus your repayments) and the interest which is the money charged on top of the principal and is calculated based on the interest rate and size of the principal.

*The amount of $405 is a weekly amount based on the purchase of a $500,000 house and land package at North Harbour on land size not exceeding 400sqm with a loan at an interest rate of 1.99% over 30 years principal and interest fixed for 4 years with a deposit of $40,000 consisting of $15,000 First Home Owners Grant (subject to approval), inclusive of loan mortgage insurance. These rates are subject to change without notice and to approved purchasers. Land subject to availability. [This example does not include costs such as loan establishment fees and legal costs]. The information provided on the North Harbour website is for general information purposes only and does not constitute financial advice. You should seek independent financial advice to assess how this information relates to your personal financial circumstances.

Request more information

Phone the North Harbour team on 07 5433 1111, visit our Sales & Information Centre or complete our online form.