First Home Buyers

To buy or not to buy?

That is the question. Or perhaps you've already made up your mind. For those that are still considering it here are some pros (and cons) for both buying and renting that may apply.

Buying - the pros

• Could be a smart investment, depending on how much property prices rise over time.
• Paying off a mortgage is a good self-imposed saving plan.
• It's not considered 'money down the drain' like renting can be. What you pay towards your loan is equity in your home.
• Freedom to make changes, add a splash of paint, knock down a wall - basically whatever upgrade you make adds value to your home...and ultimately your hip pocket.

Buying - the cons

• There's a big up-front cost (the deposit) and several other fees that add up to a nice chunk of your savings.
• Some people may feel 'locked in' with a mortgage, having less flexibility to move around.

Renting - the pros

• Flexibility - change your mind about where you want to live? Think you might like to travel? If you're renting you can move around as much as you like - well at least, with a bit less to think about than if you were living in your own home.

Renting - the cons

• Lack of security - your rent could rise out of your affordability range.
• Unpredictable - your landlord could decide they wanted to sell or move in (and consequently, you're out).
• Restrictions - you have certain rules about what you can and can't do to alter the appearance of your home; sometimes even hanging a picture on the wall could be a no-no.

If you weigh it all up you may decide that getting your foot in the door (your own door) is best done sooner rather than later. Of course it all depends on your personal circumstances. Speak to your financial adviser or make an appointment with one of our home loan lenders to discuss this further.

Grants: What's in it for first home buyers.

Just like a welcome house warming gift, the First Home Owner Grant (FHOG) can come in handy right when you need it most. The grant was set up by the Australian Government to help people like you buy their first home.

What does this mean for you? If you're buying a new or existing home and you qualify for the grant, you'll receive a payment of $7,000.

Ready to buy? We'll help you complete the paperwork and lodge your First Home Owner Grant application on your behalf. That's one less thing for you to think about when applying for a home loan.

For more information about government grants, visit www.firsthome.gov.au and select your State or Territory.

Am I eligible?

If you can answer yes to these questions you may be eligible to apply for the First Home Owner Grant and the First Home Owner Boost.

• Will this be the first time you and/or your spouse/de facto has received a grant in relation to purchasing a home in any State or Territory in Australia?
• Will this be the first time you or your spouse/de facto have ever owned a home anywhere in Australia?
• Will you or your spouse/de facto be applying for the grant as an individual person (not a company or trust)?
• Are you and/or your spouse/de facto an Australian citizen or permanent resident?
• Will you and/or your spouse/de facto be occupying the established home as your principal residence for at least six months continuously within the first year of owning it?
• Are you building your own home or purchasing a new home?
• Are you over 18 years of age?

St.George Family Pledge

At St.George our aim is to help people get into their first home. That's why we set up the St.George Family Pledge^. It allows your parents/family to lend a helping hand to purchase your home, using the equity in theirs.

Instead of lending you the cash to fund your deposit for a new home - which may not even be possible - they can use their home's equity to provide additional security for a portion of your loan amount. This reduces your loan to value ratio and can also save you a significant amount of money by not requiring Lenders Mortgage Insurance.

So you get into your home faster, with a little help from the family. Make sure you ask a St.George lender for more details when you make an appointment.

^ Eligibility and conditions apply.