A big part of the decision to purchase your first home should be based on your financial status and the impact a home loan will have on your finances and lifestyle.
You will need to save funds to cover the initial purchase (eg deposit, legal costs and stamp duty), and then you will have the ongoing loan repayments to meet. The Home loan fee calculator can help you estimate these costs.
|Set a goal|
One of the best ways to save is to have a goal. The greater the deposit you can accumulate now, the more purchasing power you will have. Remember, you will need to think about additional costs such as stamp duty and legal costs. Generally speaking, a 10% p.a. deposit plus government charges (usually 5% p.a.) is the normal amount people save. Use the Savings calculator to determine how much you need to put aside in order to reach your savings goal.
|Set a budget|
When you have worked out how much you need to put away in order to reach your savings goal, you should also establish a budget and stick to it. Make regular savings from your wages and don't dip into them. Cut expenses. Save on non-essentials. Never underestimate the power of cutting costs, no matter how insignificant they seem. Small savings add up to large amounts over time.
See how much you can save by using the ANZ budget planner. This tool has been specifically designed to help you reach your savings goal.
|Reduce your existing debt|
Whether you have store cards, credit cards, a personal overdraft, personal loan or car loan, it is important that you assess your current debt and implement a plan to reduce it with regular weekly or fortnightly payments.
|Have two bank accounts|
To ensure you can easily monitor your finances and track your progress, you may want to have two separate accounts. Use one account for your bills, repayments and expenses, and the other account for your savings.
Consider opening a savings account that cannot be easily accessed (for example your funds can't be accessed via ATMs and EFTPOS). This option is available on the ANZ Progress Saver account, this will ensure that you are not tempted to 'dip' into your savings.
|ANZ Progress Saver account|
Saving can be challenging, and a disciplined savings plan could make all the difference. An ANZ Progress Saver could help you on the way to achieving your savings goals and you could also be eligible to apply for a discount of 0.20% p.a. off the interest rate on a new ANZ Standard Variable Rate Home Loan or ANZ Variable Rate Residential Investment Loan^.
|Lenders Mortgage Insurance|
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) is one of the easiest ways to achieve the dream of home ownership sooner for borrowers who do not have a large deposit.
How can Lenders Mortgage Insurance help me?
Many lenders will generally only lend up to a loan to value ratio of around 80%. This means that borrowers need a deposit of at least 20% of a property's assessed value.
With LMI, ANZ can lend above its usual loan to valuation ratios for home loans. This means borrowers can buy with a lower deposit and fast track their entry into the home market, and you may only need a deposit of as little as 10% of the property's value, allowing you to purchase your home sooner.
The table below compares paying an LMI fee - which can be added to your loan - against saving a 20% deposit.
What does Lenders Mortgage Insurance cover?
LMI is insurance that will cover ANZ if it suffers a loss when a borrower defaults and there is a shortfall following the sale of the security property. It is important to note that LMI is not insurance for the borrower.
LMI is available to buyers of established homes, those building homes and residential property investors (established or to be constructed).
What does Lenders Mortgage Insurance cost?
LMI is a one-off fee payable by you. The fee amount depends on several variables including the size of your loan, the loan type, and the level of deposit or equity in the property. The fee can be paid from your own funds at settlement, or can be capitalised and added to your loan.
In some cases where you are purchasing an investment property the LMI fee may be tax deductible - see your financial advisor for more details.
All applications for credit are subject to ANZ's normal credit approval criteria. Terms and conditions available on application, fees and charges apply.
How to apply
Send us an enquiry
8:00am to 9:30pm (AEST) Monday to Friday,
8:00am to 4:30pm (AEST) Saturdays and Sundays.
* Based on a loan at 90% loan to valuation ratio. These figures will change if a customer is approved for a lower loan to valuation ratio. The minimum deposit shown does not include the LMI fee
^ Conditions apply. To be eligible for a discount you must have held an ANZ Progress Saver Account for more than one year, with a minimum balance of $5,000 when you apply for the discount and the Home Loan must be greater than $50,000. Offer not available in conjunction with other discounts. For further details visit any branch or call 1800 035 500).
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