- Don’t miss out on the improved first home owner entitlements
- There’s never been a better time. If you and your partner have never owned a home, you may be eligible to receive the improved First Home Owner Grant, a federal government scheme run by each State government. The funds can help pay legal costs, stamp duty and other property purchase expenses – or you can put it toward your deposit. St.George can forward your First Home Owner Grant application on your behalf when you lodge your home loan application. Visit www.firsthome.gov.au and click on your home state to find out more.
- Don’t miss out on state government home owner assistance
- Make sure you check with the Office of State Revenue in your State/Territory to see if you’re eligible for first homeowner assistance. Some State/Territory governments offer eligible first homeowner other cash payments, discounts or concessions on expenses like transfer fees and stamp duty. Visit www.firsthome.gov.au and click on your home state to find out more.
- How much can you borrow? Be in the know
- Your borrowing power depends on your income, your expenses and the value of the property you want to buy. Find out how much you can borrow using our Borrowing Power Calculator.
- Keeping track to get ahead on the house hunt
- House hunting can be confusing and challenge your memory and patience as you inspect countless properties. Keep all the details clear in your mind by completing our St.George Home Buyer’s Checklist for each property you inspect. This will help you compare like with like and ensure your ‘must-have’ criteria are covered, no matter how sick of the process you get. Take snapshots and make notes of first impressions for each property – they do count.
- Want the best of both worlds? Try splitting your loan
- One way to protect yourself against the full impact of interest rate rises and add a little certainty to your budget planning – without losing the flexibility and features of a variable interest rate loan – is to split your loan. You can divide it into part fixed and part variable rate components. And you can mix and match the proportions to find the solution that suits you with our Split Loan Calculator.
- To fix or not to fix? How to know when to make the move
- As a general rule of thumb, a quarter of a per cent increase in home loan interest rates will translate to an increase of around $15 in repayments per $100,000 you owe, per month. Working out what sort of interest rate increase you can afford and keeping an eye on the rates can help you decide if or when to fix.
- How paying a little extra can make a big difference
- You can save big dollars and years on your home loan by making even small additional repayments. For example, you could save over 3 years and more than $68,000 just by paying an extra $50 each week on a $250,000 home loan at 9.47%p.a. Find out how much time and money you could save on your home loan using our Extra Payments Calculator.
- Consolidate, save – and simplify your finances
- Getting rid of the stress and expense of juggling high interest debts such as credit cards or store loans could be as easy as paying them out using your home loan. So long as you’re disciplined about repayments, this can spell big savings, because home loan interest rates are generally much lower than those of other loans. Talk to a St.George home loan lender to find out more.
- Confused about home loans? How to compare apples with apples
- Confused about which home loan is for you? Use our Home Loan Comparison Calculator to help you compare repayments, rates and see which loan offers what features. Or make an appointment with one of our lenders who can take you through your options.
- How to make an extra month’s repayment each year
- Simply pay your loan off each week or fortnight instead of each month and you automatically make the equivalent of an extra month’s repayment each year. See how much time and money this can save you by using our Extra Payments Home Loan Calculator.
- How to speed up the home loan approval process
- Knowing what documents you need to provide to get your home loan can make applying for your loan easier and help speed the approval process. Our Home Loan Application Checklist will help you get organised.
- Turn gifts and bonuses into extra repayments
- Turn those little extras into extra repayments and save. Deposit any dividends, gifts, bonuses, tax refunds – even Grandma’s birthday cheque – directly into your loan.
- A loan that gives you optimum flexibility for speedy repayment
- With St.George’s Portfolio Loan, you can have all of your salary and wages paid directly into your home loan account, so your earnings can constantly work to reduce your home loan interest. To get the benefit of this feature, just be sure that at the end of each month what you’ve paid against the loan is more than what you’ve used in expenses.
- Don’t be caught short: know your expenses
- When planning your home purchase and borrowing, don’t forget to factor in all of the costs involved. As well as the purchase price, the stamp duty on the purchase price amount and on the mortgage, there are legal and search fees, loan application and/or establishment fees, building and pest inspection fees and other associated costs such as moving house.
- How to budget for your repayments
- You can find out what the weekly, fortnightly or monthly repayments are on different loan amounts, at different interest rates. Our Home Loan Repayments Calculator does the sums for you.
- Get the timing right – know when you’re approved
- Always be sure to have your home loan formally approved before you pay a deposit or exchange contracts. Even if you’ve received a conditional approval, more information may be required before the loan has final approval. Formal approval comes in the form of a Loan Agreement from your lender, which includes the offer to lend.
- All about exchanging contracts and settlement
- Exchanging contracts happens when your bid (at auction) or offer (at a private sale) is accepted. You and the seller will exchange the contracts of sale and you will pay the deposit – generally 10% of the agreed purchase price – to the real estate agent, who will hold it in a trust account until the settlement date. That’s when you pay the balance of the purchase amount and officially become the property’s new owner.
- Package your home loan and everyday banking and save
- When applying for your loan, make sure you ask about the special rates and reduced fees available when you combine your home loan with our flexible everyday banking options in the St.George Advantage Package. It could save you thousands.
- Know your stamp duty requirements
- There may be more than one type of stamp duty payable when you buy your home. There’s stamp duty based on the property price, generally the highest cost associated with the purchase. Then, if you borrow to fund the purchase, there’s stamp duty on the mortgage. The rates of duty vary from State to State and on the values concerned. Find out what you’ll pay for each type using our Stamp Duty Calculator.
- The right way to make an offer to buy
- Ready to make an offer? Be aware that there are two types. ‘Conditional offers’ which are not legally binding unless certain stated conditions – such as obtaining finance, satisfactory pest and/or building reports – are satisfied; and ‘unconditional offers’ where you are already 100% sure you want the property. If you and the vendor reach agreement on price, the unconditional offer is legally binding. ‘Cooling off’ periods apply to both types but will vary in each State/Territory, so check with your agent before you take the plunge.
- Bidding at auction? Be prepared
- Make sure you ‘dot your i’s and cross your t’s before bidding at auction. Different States have different legal requirements for this type of sale. For example, in some States only those who have officially registered their details with the auctioneer have the right to bid.
- Don’t fall into the ‘bid against yourself’ trap
- If bidding at an auction and the action stops with you as the highest bidder, don’t be tempted to bid against yourself – that is, go higher despite having no competition. This is a common mistake. Remember, as the highest bidder you have first entitlement to negotiate the sale if the property is passed in. By bidding against yourself, you only push the initial negotiating price higher.
- Use the funds in your everyday bank account to reduce your home loan interest bill
- An Interest Offset Facility works by offsetting the interest you would otherwise earn on your St.George savings or other account directly against the interest that would otherwise be payable on your home loan, saving you interest and helping you own your home faster. Make sure you ask us about it – and use our Mortgage Interest Offset Calculator to see how much you could save.
- No funds free for your deposit? No worries.
- If you have funds tied up in investments or other accounts, there’s no need to lose on your investment returns by using them for your deposit immediately. Instead, ask us about a Deposit Protect Bond, which leaves you free to enjoy your investment returns until the day your home purchase settles.
- How your family can help you own your own home
- If you have family members with strong home equity they can help you buy your home by using their equity to guarantee a portion of your home loan. We call this Family Pledge option and it can boost your borrowing power and help you avoid or save on expenses such as Lender’s Mortgage Insurance.
- Make sure you know your ‘real rate’ of interest
- Ask your lender to tell you the ‘real rate’ of interest, also known as the Annual Average Percentage Rate that applies to your loan. This takes into account both the rate of interest and other factors that affect how much you must pay on your loan each year, such as fees and charges. Don’t just use the advertised or ‘headline’ rate to make your comparisons.
- Which bells and whistles do you really need? Consider and save
- Where a home loan includes additional features, ask yourself: will I use them to my advantage? Used wisely, such features can add convenience and help build wealth, but they generally involve more costs. Make sure you’re aware of these costs and factor them in to your decision-making.
- Lender’s Mortgage Insurance and how to avoid it
- Lender’s Mortgage Insurance may be payable on your loan if you need to borrow an amount over a certain proportion of your home’s value. It’s usually payable where the money borrowed exceeds 80% of the value of your property. You may be able to avoid it and make big savings if you have family members prepared to use their own home’s equity as extra security on your loan via our Family Pledge facility.
