Our guide to buying a home
The decision to buy a home is one of the biggest you’re likely to ever make. Getting your planning right from the start, can help to save you more than just money in the end.
Saving for a deposit
Learn more about our products for owner occupiers, like Suncorp Bank's Deposit KickStart and Low Deposit Option, plus the First Home Buyers Grant, that can help you with saving a home deposit.
How can I estimate the total costs involved in buying a home?
So, you've found that perfect house. Great! House hunting can be exciting, especially when you spot "the one".
It's a little less exciting when you sit down to figure out how much you need to spend. There's the price of the house itself, which will probably be your biggest expense, but you'll have to factor in a range of other things when working out your total budget.
How much do you (really) need for a house deposit?
If you're saving for a house, it can be hard to know when exactly to stop. When will you actually have enough money to go looking for a house and actually put down a deposit? After all, a home loan is a huge life commitment. You're generally not expected to pay it off in less than 25-30 years. You don’t want to rush into it.
We've all seen the news stories. Apparently, it's more difficult than ever to buy your first home – if you don't win the lottery, then good luck getting a foot on the property ladder.
After hearing these claims, it'd be easy to swear off buying a house forever.
Government fees & other costs
Buying a property costs more than just the purchase price. When it comes to getting a home loan, government fees can be a factor in knowing how much to budget. It’s important to be aware of all the additional costs you’ll incur when buying a property – and budget for them accordingly before you sign a contract.
Tools to help you understand the cost
What is LVR & LMI?
The deposit you need will depend on the type of transaction and loan facility you choose. If you are looking to purchase or refinance your own owner-occupied property, you can generally borrow up to 95% of the purchase price or valuation (whichever is the lesser) i.e. up to a 95% loan to valuation ratio (LVR) inclusive of any lenders mortgage insurance that may apply. Higher deposits may be required for investment lending and/or borrowing to finance the purchase of vacant land for construction loan purposes i.e. 10% minimum deposit or maximum 90% LVR.
Lenders Mortgage Insurance (LMI) is required on all borrowings in excess of 80% of the property value.
NOTE: The borrowing limit for refinancing your mortgage is 90% of the purchase price or valuation (whichever is the lesser).
If you are borrowing more than 80% of the value of the property, you will be required to pay Lenders Mortgage Insurance. This is a one-off payment and can be financed into the loan.
Lenders Mortgage Insurance protects Suncorp Bank against loss in the event of a forced sale of a mortgage property. It does not insure you but may make it possible for you to buy a home with a smaller deposit. You will still be responsible for all amounts owing in relation to your loan.
What does your Money Profile say about your savings style?
What influences how much I can borrow?
If you’re in the market for a new home, at some point you’ll probably start wondering how much you can afford to spend. It’s a pretty important question, after all.
Everything you need to know about the First Home Buyers Grant
Buying your first home is an exciting time, it’s can also be an expensive one. Between home loans, stamp duty, inspections, and conveyancers, there’s plenty to consider. Thankfully, there are several grants and reductions that apply to eligible first home buyers.
Need more help with home loans?
*FlexiRates allows you to earn higher interest rates by locking away a portion of your savings within your account for periods up to 12 months. The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.
Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Disclosure Statement before making any decision regarding the product. Contact us for a copy.