Low rate home loans - SCU More Generous Banking

Low rate home loans - SCU More Generous Banking

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Buying first home with no deposit and low repayments? Yes please!

How much deposit do I need to buy my first home?

Saving enough money for a home deposit sounds unachievable for many first-home buyers. Contrary to what you may have heard, you don’t always need to have a 20% deposit.

To take advantage of today’s favourable market conditions for first home buyers, our First Home Buyer loan has a Family Support* option, which means parents can help children purchase their first home by using the equity in their property to guarantee the entire deposit, or a percentage of it. Using the Family Support option, you may be able to purchase a home with no deposit, avoiding paying lenders mortgage insurance (LMI)**, which can amount to thousands of dollars.

You will also need to consider extra costs normally associated with buying a home (loan application fee, valuation, legal fees, conveyance, title transfers) which might add up to around $2,500 for a first-home buyer. You can use your First Home Owner Grant to cover these costs. The stamp duty cost, if applicable, needs consideration as well.

Case Study 1: First Home Buyer Loan with no deposit using Family Support Option

Jane and Jack married recently and decided to purchase their first home. While both young professionals earning decent salaries, the key challenge for them was the fact that they did not have any money saved for a deposit. After an assessment of their financial situation, including assets and liabilities, income and expenses, it has been determined that Jane's parents are happy to help out as guarantor on their home loan.***

  • Type of loan: SCU First Home Buyer Loan with 40 year term
  • House Value: $500,000 in a NSW suburb
  • First Home Owner Grant: $10,000 plus Stamp Duty Exemption
  • Loan: $500,000
  • Deposit: $0 (Family Support Option*)
  • Monthly repayments: $2,020

Case Study 2: First Home Buyer Loan with minimum deposit - no Family Support Option

Sara and Rick have been contemplating the idea of purchasing their first home for a couple of years. Due to some recent travelling and their wedding costs, saving for their deposit had been impacted and none of their family was able to help out as Guarantor. However they were having approx. $42,000 set aside to cover their deposit, LMI premium and legal and conveyancing and moving costs.***

  • Type of loan: SCU First Home Buyer Loan with 40 year term
  • House Value: $500,000 in a NSW suburb
  • First Home Owner Grant: $10,000 plus Stamp Duty Exemption
  • Loan: $475,000
  • Deposit: $25,000
  • LMI Premium: $23,608 approximately (the LMI premium is required to be paid ‘up front’)
  • Monthly repayments: $1,920
 

Where to buy a home for under $650,000?

Most first home buyers are motivated by first home owners grants and the stamp duty concessions, however as $650,000**** won’t buy you much in Sydney, new entrants looking to take advantage of the stamp duty exemption need to put careful consideration into where and what they buy.

Fortunately for first home buyers, new developments are springing up everywhere around Sydney.

For example, Huntlee, a new development two hours north of Sydney, is providing family home packages for around $500,000 (four-bedroom home with two bathrooms, two garages and an average land size of around 600 square metres). Located right at the start of the M15, in the heart of Hunter Valley, and only 45 min to Newcastle and 90 min to Sydney, Huntlee is designed to offer not only affordable housing, but also lifestyle and a community feel. There will be a wide range of shops and supermarkets available together with schools, medical facilities, parks and cycle paths.

According to Domain Group data, in 26 Sydney suburbs one in four houses sells under the first home buyer stamp duty exemption of $650,000.

Note: SCU does not endorse Huntlee or other developments. The information is provided as an example only.

 

Why extend the term of the loan to 40 years?

At SCU More Generous Banking, we’ve extended our First Home Buyer Loan to 40 years, which simply makes owning your own home sooner, a reality. By extending the term of your loan, the repayments become lower, making it easier to make ends meet and afford you the opportunity to live without compromising on life’s necessities and occasional indulgences.

We’ll also work with you to create the most financially beneficial First Home Loan solution that includes complimentary Financial Planning, assistance in applying for the First Home Owner Grant, Family Support options and, if required, a redraw facility. The opportunity to create this exclusive 40-year loan term is the result of our customers being our shareholders who all benefit from our on-going investment in products and services to better service you.

 

What is my borrowing power?

How do I apply for a low or no deposit home loan?

You are not sure if you qualify for a home loan with a low or no deposit? We are here to help!

If you're ready to crack the property market and you need advice, we will investigate your options and help you secure a home loan suited to your needs. Fill out the form below and we’ll be in touch!

* Family Support is available for borrowers, especially first home buyers with no deposit, who have an immediate family member that is willing and able to offer security, e.g. their own property, as Guarantor on the loan to secure a minimum of 20% of the purchase price. The Guarantors financial position should be such that they are able to meet their obligations under the guarantee. Non-Resident guarantors are not eligible.
** Lender’s Mortgage Insurance is an insurance policy that protects the lender from financial loss if the borrower can’t afford to meet their home loan repayments. Generally you need to pay for a lender’s mortgage insurance policy if your home loan deposit is less than 20% of the total value of your mortgage.
***Note: This is for general information purposes only and does not constitute advice. The information on this article does not take into account your particular financial circumstances or needs
****In NSW, first home buyers are exempt from paying stamp duty on properties up to $650,000, and pay a reduced rate for homes between $650,000 and $800,000. http://www.revenue.nsw.gov.au/grants/fhba.

First Home Buyer 40-year term

Variable Interest Rate
3.77% pa1

Comparison Rate
3.82% pa2

What will my repayments be?

  • Assistance with applying for the First Home Owner Grant
  • Complimentary Financial Planning assessment
  • Redraw Facility3
  • Family Support Option4

Why Choose SCU

  • We've been around for almost 55 years. We're safe and secure, with a network of 16 branches where you’ll receive a warm welcome from people who are more generous with their time.
  • We’re not like the big banks. We are customer owned and by putting you first, our investment is in you without the conflict of interest between customers and shareholders.
  • We are not behind big banks in terms of facilities. We have Internet Banking, Mobile Banking App, Apple & Android Pay, access to over 3,000 ATMs and an Australia-based call centre.
  • Nicole

    Edgewater WA

    SCU helped us secure our first dream home in Perth, Western Australia. Their outstanding customer service, care and guidance made the whole process of us securing our first home a smooth ride. What is even more commendable is that all of this was done from over the east with no problems. Importantly their low interest rates beats the competitors by a huge margin and we have no doubt in saying we will stay with SCU for all our banking and highly recommend SCU to everyone in Australia.

    Nicole securing our first home

  • Jason

    Matraville NSW

    My family have been members of SCU for over a decade. We’re a pretty busy family, so dealing remotely and outside of normal hours which can often be a challenge is never a problem with the team at SCU. In particular, the setup and ongoing management of our complex mortgage loan requirements have been a positive experience via SCU’s highly capable mobile specialists and support team behind the scenes. I have no hesitation in often recommending SCU to friends, colleagues and family.

    Jason complex mortgage loan requirements

  • Greg

    Richmond NSW

    As a long standing member of over 40 years with the SCU they have provided me with outstanding customer service and now that my family are also part of the SCU they have continued to receive the same efficiencies and personalised service that I have experienced over the 40 years. 

    We have no hesitation in recommending the SCU for all their banking facilities, services and friendly staff.



    Greg banking facilities