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EDA Property FAQ2021-05-17T02:08:16+00:00
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Further questions?2021-04-27T20:46:44+00:00

If you’ve for any further questions, EDA Property are specialist property investment advisors in Melbourne. We can provide further advice on saving for and buying your first home keeping both your interests and your long-term goals in mind.

Feel free to get in touch with us for a no-obligation consultation today.

What government grants should I look into when applying for a loan?2021-04-27T20:45:59+00:00

Grants vary in each Australian state.

In Victoria, there is a $10,000 First Home Owner Grant (FHOG) when you purchase or build your first home. This goes up to $20,000 if your home is built in regional Victoria and you sign a contract from 1 July 2017 to 30 June 2020.

To get this grant:

  • Your first home needs to be valued at $750,000 or less;
  • The sale needs to be first sale as residential premises;
  • The property must be less than five years old; and
  • The property must not be a holiday house or an investment property.

There are a few other requirements. To find out if you’re eligible, take the eligibility test online on the State Revenue Office website.

Should I use a mortgage broker?2021-04-27T20:44:42+00:00

If you find a good one, yes.

Rather than going straight to a bank, mortgage brokers do all the hard work and find you the best lender to suit your personal circumstances. They’ll develop an understanding of your needs and your long-term objectives. Just because a bank offers the cheapest interest rate, it doesn’t automatically mean they are the best option for you.

Brokers generally don’t charge you fees (although some do). Make sure you find one who has a good track record and who doesn’t charge you brokerage fees.

How quickly can I get a new loan?2021-04-27T20:43:56+00:00

You’ll have to go through what’s called “pre-approval”. A lender will ‘pre-approve’ you for a loan based on factors such as your living expenses, credit score, employment and how often you’ve changed jobs in the past.

‘Pre-approval’ is performed prior to finding a property so it does not consider your specific house or apartment.

Pre-approval typically lasts a few business days, and those pre-approvals are valid for usually 90 days.

Can I get a loan when I’ve just started a new job?2021-04-27T20:43:22+00:00

This will differ depending on the lender.

Some of the banks may require that you’ve been employed for at least a year, but some only three months. Others will not agree to loan to you if you’re on a probationary period.

We recommend speaking to a mortgage broker to get a better understanding of your situation and who can provide you a the best possible home loan.

What are the extra costs other than my deposit?2021-04-27T20:42:59+00:00

Other than your 10 per cent deposit, there are a range of other costs you’ll need to have in mind when taking out a home loan. These extra costs will include:

  • Stamp duty (otherwise known as land transfer duty);
  • Legal fees (when preparing the contract for the sale of land);
  • Moving expenses (to help move all the furniture you plan to have in your new property);
  • Building and pest inspection/extermination (to get out all the roaches and rats before you move in);
  • Mortgage insurance;
  • Council rates; and
  • More.

Purchasing property, as you’ll soon realise, isn’t cheap. That’s why having a robust savings strategy is so important prior to buying your first house or an apartment.

How much does it cost to take out a home loan?2021-04-27T20:42:18+00:00

The cost is different for each lender.

Some lenders will decide not to charge you an application fee, and others will.

What is stamp duty and when do I pay it?2021-04-27T20:41:38+00:00

Stamp duty – also called land transfer duty – is a tax applied by state governments when you buy and sell property. It needs to be paid upfront and must be taken into account when purchasing property.

The amount of duty you have to pay is different in each Australian state. You can find more information about the Victorian land transfer duty on the State Revenue Office website.

Factors that are typically taken into account include:

  • whether your property is a primary residence;
  • whether you’re a first home buyer; and
  • whether you’re buying a new home or an established one.
How large should my deposit be?2021-04-27T20:40:34+00:00

Generally, you’ll need to put down a 10 per cent deposit when taking out a home loan.

Speak with the seller or the real estate agent to find out what type of payments is required (which may be a cheque).

How do I find the right home – should I buy a house or an apartment?2021-04-27T20:40:10+00:00

The answer to this question comes down to your own goals.

There are advantages and disadvantages that come with buying one or the other. It will depend on what lifestyle you prefer, whether you are looking for capital growth, affordability, ongoing costs and more.

What do I need to apply for a loan?2021-04-27T20:39:22+00:00

When applying for a home loan, it’s important that you have:

  • ‘Genuine savings’. This simply means that you have held at least five per cent of the purchase price for a period of time – usually, three months.
  • Good credit score. Your credit score will be a number between 0 and 1200. The higher it is, the more likely a lender will be willing to grant you a home loan. This will be assessed according to a range of factors such as paying bills and repayments on time.
  • Documentation. When applying for a loan, you may need a range of documents like personal identification, information about income such as a recent payslip, your expenses (such as bills and other costs) your assets and liabilities and so on.
How do I save for my first home?2021-04-27T20:38:16+00:00

No doubt, saving up for a deposit on a house will require lots of commitment. One of the most frequently asked questions we receive from first home buyers is how to develop a savings plan or, more generally, how to save at all.

The answer is simple: discipline.

You don’t need to have a masters’ degree in finance to develop a solid savings plan. You also do not need to develop a strict budget where you monitor every dollar that you spend.

All you have to do is:

  • Place aside a portion of your pay into an account dedicated for saving;
  • Set a time frame for when you want to achieve your goals;
  • Automatically transfer the money when you get paid; and
  • Watch the money grow.
Where can I find EDA Property reviews?2021-04-26T11:27:19+00:00

We have a number of reviews and testimonials from clients that you can search via Google
Reviews, Facebook or by following this link: Eda Property Reviews

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