So you're looking around the City of Moreland area, you've contacted Ray White Brunswick and you have your eyes set on real estate in Coburg. If you haven't been doing so already, now's the time to sort out your home loan plans. That means budgeting, calculating and planning of all kinds.
To help you feel more confident, here are two facts to know before applying.
1. Lenders mortgage insurance exists
Around the web, most mortgage loan tips will tell you to save 20 per cent of your house price so you can put down a deposit. This is because if you supply any less up front, you'll be charged annual lenders mortgage insurance.
Basically this is an additional cost to help the lender feel more confident about giving you a loan. If your deposit is lower than 20 per cent, they might worry about foreclosure and not recouping their investment, so the insurance is there for protection. The good thing about it, however, is that if a lender is willing to charge this insurance, it widens their customer base to accept people with lower incomes.
2. The state might help you pay for the house
Across the country, there is a scheme known as the First Home Owner Grant (FHOG). Each state has slightly different definitions, but basically it means the government is willing to offer you a portion of a house price to help you out. Whether you are building or buying property in Coburg, you might be able to apply for this.
In Victoria, you can get up to $10,000 for a house that costs $750,000 or less, providing you meet the eligibility criteria. There are a number of other required documents for an FHOG application form, so jump onto the Victoria government's State Revenue Office website for more info.