NEWS FLASH FIRST HOME OWNERS GRANT INCREASED BUT ONLY UNTIL SEPTEMBER 2009. DON'T DELAY GET YOUR NEW HOME UNDERWAY.

The First Home Owners Grant can be used for anything. Most people use the Grant to cover costs associated with the home purchase or to assist with deposit.

We suggest to out clients that should there be a balance of funds after settlement that this amount be paid off the home loan to reduce the ongoing interest charges hence reducing the loan term.

In Tasmania there is also a $4000.00 stamp duty consession for first home buyers. Should the stamp duty associated with the purchase be less than $4000.00 you won't receive the difference, should the stamp duty be more than this amount you only have to make up the difference.

• Yes, in addition to your deposit you will be required to meet a number of other costs. These include but are not limited to the following.
• Solicitor/ Conveyancer Costs.
• Lenders fee's & charges in relation to establishing the loan including any valuation fees.
• Search fee's (to ensure there is nothing untoward in relation to the property).
• Council Rates & Taxes. (Purchasers are usually required to pay these until the 30th of June following settlement. )
• Lenders Mortgage Insurance Premiums.
• Registration fee's on transfer of title.(this is a government fee to transfer the title of the property being purchased into your name)

With interest rates on the way up again there has never been a more important time to consider your options. Especially with the chance of more increases during 2010.

Fixed interest rates are currently still quite high (even after the interest rate reductions of 2009).

Fixed rates will generally reduce sooner than variable rates, but be carefull as numerous financial comentators beleive that interest rates will increase further during 2010..

We have access to a range of lenders that offer very good fixed rate options with unlimited extra repayments and 100% off set accounts.

Call Mark Wehse Home Loans to discuss your options.

With the change in world financial markets there has also been a change to the savings history requierments by the Mortgage Insurers.

In most cases borrowers will now need to demonstrate a 3 month savings history equaling 5% of the purchase price if looking to borrow 90% of the purchase price.

These savings can be demonstrated by bank statments, share purchases etc.

Advance payments on car or personal loans or gifts from family members wont generally qualify as savings history.

Call Mark Wehse Home Loans for more information.

Mark Wehse Home Loans "The trusted name in Home Finance"

• 2 recent computer generated payslips.These should not be more than 4 weeks old and show your Year To Date Income. If you receive hand written payslips you may also require a letter from your employer on a company letterhead confirming commencement date, gross annual salary, regular overtime if applicable and also on what basis you are employed eg Full time, Part time, Casual etc
• You will also need to have available your most recent group certificate or tax return. Most lenders will only require 1 year. It is a good idea to have the previous year available should it be required. Self employed applicants will require a minimum of 2 years personal taxation returns, should you be trading as a company or partnership you will also be required to submit 2 years company or partnership returns.
• You will also need to demonstrate a savings history should you be considering borrowing more than 90% of the valuation or purchase price. Savings history can be demonstrated in a number of ways. Usually bank statements showing that you have saved 5% of the purchase price over a period of 6 months. This may be achieved with term deposit certificates, bank statements, and share certificates. Some institutions will lend up to 97% of the purchase price or valuation but this will incur a higher Lenders Mortgage Insurance Premium. If you are in a situation where you are able to fund 10% or more of the purchase price, Mark Wehse Home Loans has access to a range of lending institutions that will not require a savings history, this is great if you have the financial assistance of a family member of have funds available from other sources. Please note should you be obtaining a financial gift to assist you with your deposit, you will also require a Statutory Declaration from the person making the gift advising that the funds are non repayable should this be the case.
• Lending institutions will also require confirmation that you have the ability to cover the other costs associated with your purchase exclusive of your deposit.