Blue Coast Finance

So you’re thinking of purchasing your first home? CONGRATULATIONS! You are well and truly on your way to financial security and freedom.

WHY SHOULD I BUY AND NOT RENT

Its always been the great Australian dream to own your own home. Thankfully, over the past few years, lenders have become more and more innovative in helping the first home buyer into the market. This has been driven by the skyrocketing property prices that have occured in all states.

Below are just some of the reasons to buy and beat the rent cycle.

• Property has always been an appreciating asset, generally doubling in value every 7-8 years.
• Why pay off your landlords mortgage when you can pay off your own
• Consider your home as an investment. Owning your own home is one of few ways to make a tax free capital gains
• Any improvements you do to the property adds value to your investment, not your landlords....and you don't need to ask permission
• How often does the Government give away $7,000 for nothing? Take advantage of the First Home Owners Grant.

HOW DO I BUY MY FIRST HOME

The first thing to do when you look for your home is to know what price you can afford. This is done by matching your particular circumstances against the various lending institutions to determine what loan amount will be acceptable to a lender, and more importantly, what repayment level is comfortable for you. Not all lenders are the same; there can be massive differences in how one lender will calculate your borrowing ability to the next.

Once you know how much you want to borrow then a loan pre-approval can be organised. This will give you the confidence that the lender has said yes to your loan and you can now shop around for your dream home. A pre-approval is no obligation, costs nothing and generally last for a period of 3-6 months.

Once you have found a home and negotiated a price, the contracts are signed and the settlement date set. Normally the contract will have clauses to enable enough time to complete your finance and to organise a building and/or pest report. At this stage you should also seek the services of a solicitor or conveyancer.

Upon receiving a copy of the contract, the lender will usually organise a valuation of the property, and if satisfactory, issue a formal approval. Once you have signed mortgage documents and if you are satisfied with the building and/or pest report then settlement proceeds, and soon you are the owner of your own home.

HOW CAN BCF LENDING HELP ME?

Buying your first home can seem like a daunting process but it does'nt need to be. At BCF Lending we specialise in helping first home buyers through the purchase process.

Our innovative “Transactive” software program allows us search through a panel of over 30 lenders for the most suitable loan for your unique circumstances. We then handle all the loan paperwork and organise your pre-approval for you.

For most people it can seem almost impossible to save for a deposit and pay rent at the same time. You may be surprised to know that we have access to "no deposit loans" that may allow you to borrow up to 105% of the purchase price. There are also innovative "Shared Equity Mortgages" now on the market where the lender effectively gives you an interest free loan of 20% of the properties value, whilst sharing in the capital gains (or losses) at a later date. We can help you through the maze of options to ensure you find the most appropriate loan for your circumstances.

Just a few of the other services we can help you with:

• How much you can borrow?
• Whether you’re eligible for the First Home Owners Grant?
• What Stamp Duty concessions you are entitled to?
• What other costs are involved?
• What are the advantages and disadvantages of fixed rates versus variable rates?

We are happy to visit you at home 7 days a week or why not drop into our office for a cup of tea and a friendly chat.

Our service is at no cost to you as we are paid only by the lender when your loan settles. BCF has helped hundreds of happy clients into their first home. Read our testimonial pages to see what they have to say about our service.