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What is a first home buyer loan in Australia, and how does it work?



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Are you looking to purchase property in Australia, but don’t have the funds or know-how? You may be eligible for a First Home Buyer Loan. This type of loan combines government grants and other financial assistance into one package, enabling first time buyers an easier path towards their dream home. Let me tell you how it works!

First off there are two main types: Concessional Loans and Non-Concessional loans (also known as non-discounted)

What is a concessional loan?

A concessional loan is often made up of parts that include stamp duty discounts, registration fee waivers and several different subsidies/grants depending on where you live. These can range from exemption/freeze concessions on existing fees such as land tax; free building inspection services; access to builder incentives like finding lower priced appliances or furniture amongst others. 

Generally speaking these are available only when your total household income does not exceed certain limits set by respective states and territories within Australia — usually $95k combined annually—plus the amount put forward will vary from state to state due to differing conditions imposed upon applicants seeking this kind of assistance with buying their first property. As an example Victoria offers about 20 criteria for eligibility whilst NSW offer 13 options which allows maximum affordability relating to regional locations across both States providing great leniency for those wanting a foot hold in our growing market no matter where they find themselves geographically located within either State borders .

What is a Non-Concessional loan?

On the other hand ‘Non–Discountable’ Acts seek out new entrants who wanting larger mortgages than what can typically be covered under the former whereby much longer repayment terms over thirty years become more common although come attached with higher interest rates. This means buyers should always proceed strategically – understanding that such additional borrowing requires much thought given before committing future earnings let along any extra top ups associated with exuberant purchasing costs linked directly or connected indirectly via large deposits required plus potential extras including legalities particular inspections surveys etc all being taken into serious consideration since at times costs related matters do sometimes creep beyond initial expectations– fortunately though still allowing investment seekers advantages through generous rebates considered ideal if contracts cash strapped situations apply now making good use of long payments plans offered throughout most capital cities applicable today more so.

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