As new house prices have increased, more and more people are utilising the assets of Mum & Dad to get into their first home sooner. If your parents or extended family aren’t in a position to lend you money, it’s worth considering a Parental Guarantee. At Connecting Finance we practice responsible lending and always consider your financial situation and theirs. With a limited guarantee you can leverage the equity in your parent’s existing home in place of a 20% home deposit. This limits their risk and means you don’t need as much up front to secure your home loan.

If you’re building or buying your first home, there are also government incentives which can save you thousands! Stamp Duty has been a significant additional cost for home buyers. With the new First Home Buyer Choice Scheme in NSW, from January 16th next year, you can choose whether to pay stamp duty OR an annual levy of $400 plus 0.3 per cent of your property’s land value. You may also be eligible for the new Shared Equity Scheme designed to help teachers, nurses, police, single parents or older singles enter the housing market from January 2023. From the 1st July, the First Home Loan Deposit Scheme will be known as the Home Guarantee Scheme (HGS), with 35,000 First Home Guarantee places available to eligible first home buyers and 5,000 Family Home Guarantee (FHG) places for eligible home buyers each financial year.

Whether you’ve saved a deposit or are using a parental guarantee, one of the key factors the bank will look at before approving your loan is whether you can meet repayments. We can help you with a strategy to demonstrate to the bank responsible spending and saving patterns in the lead up to buying your new home, giving them confidence that you can meet loan repayments and helping to ease the approval process.

Buying a home is the biggest purchase you’ll ever make, and it’s so important to know how much you can spend before you go to auction or make an offer. At Connecting Finance we’re experts in the field of lending. We have access to over 40 banks, credit unions and financial institutions so we can find the best financing option for you, making the process as simple and stress free as possible – and we’re paid by the bank, not by you.

Our service doesn’t stop when your loan is settled. At Connecting Finance we’ll meet with you and the bank after settlement to ensure everything is working just as it should be. To find out how we can help you get into the housing market sooner, get in touch today or find out more at ConnectingFinance.com.au