Renting vs Repayments … could you own your home sooner?
Are you renting? Your dream of owning your own home could be possible sooner than you think.
It might surprise you to know that the repayments on a Police Credit Union home loan could be less than the average weekly rent in SA and NT.
The average house rent in Adelaide is $450 per week* and $420 per week in Darwin#
Whereas a home loan of $400,000 over 30 years at 2.99%p.a. would require a repayment of $388 per week.^
Of course, you will need to have some savings behind you for the deposit and to cover fees and charges like stamp duty and conveyancing etc. But don’t worry if you haven’t quite reached your deposit saving goal yet – there are some different options to help you go from renting to owning your own home a lot quicker.
A Family Guarantee (also known as a Family Pledge) may be an option to help you get started if you have a low deposit. Guarantors can be immediate family members such as parents or siblings who have enough equity in their home and offer part of this equity as security for your loan.
The equity in their property can help make up for any shortfall in saving the minimum 20% deposit required to avoid the need for Lenders’ Mortgage Insurance (LMI) which could save you thousands or increase your borrowing power. You can learn more about LMI here.
First Home Owner Grant
You may also be eligible for financial assistance from the Government in the form of the First Home Owners Grant. You can find out more on the South Australian Government or the Northern Territory Government websites.
Interested in discussing your options? Ready to transition into the property market and want to have a personal chat, call us on 1300 131 844 or visit a branch to learn more about your options.