Let’s face it, university isn’t easy, and if you’ve studied hard for quite some time then you’ll have earned the kudos that comes with a certificate III/IV, degree, diploma or higher qualification. Of course, chances are you’ll want to let off steam for a few weeks after graduating but sooner or later thoughts turn to how to use your qualifications to get a great job, and of course, a house.
Owning your own home, whether a house or apartment is quite a big deal, and many banks realise that those who have shown a commitment to learning that has resulted in a higher qualification. These people are likely to commit to a home loan, so they tend to offer good rates and benefits for graduates. There is a wealth of information for first time buyers available, so if you’ve graduated, or are about to and want to own your own home, then it’s well worth looking at a graduate loan.
What you need.
Whoever you are and whatever your situation, unless you’re wealthy enough to buy your home outright, you’ll need a deposit to secure a home loan. If you’re a graduate however, you’ll likely be able to benefit from a low deposit, from 3% in some cases, or 6% if you’re intending on building your own home. This differs between regions so it’s well worth checking out the deposit situation before you take the plunge and start looking for a house. You may need to revisit your budget if you haven’t taken this into account and it would be awful to fall in love with a prospective home and then find you’re just not able to afford it.
In addition to your deposit, you’ll also need references if you’ve rented a property previously (usually 12 months as standard) or if not, you must be able to prove you’ve had savings for three months of around $3000 (amounts differ between home loan providers). You’ll also need to meet other fees and charges, so check the costs of these before applying and also take a look at your credit history. If it’s not clear, you might struggle, although there are sometimes other options.
If all this sounds a little too much, there are Government grants that can assist with deposits and other charges. These are perfect for first time buyers and can really help. Check the governments website for details.
Benefits of graduate loans.
Of course, graduate loans differ depending on the home loan provider, but some of the benefits graduates can take advantage of with certain providers can include:
A lower deposit – Paying a lower deposit will free up more funds for decorating your new home. You’re likely to need furniture too if this is your first home, so any saving is worth having.
Lower Lenders Mortgage Insurance Rates – Sometimes graduates are less of a risk than those with lower levels of education. If you can save on mortgage insurance, you can certainly benefit from lower monthly bills.
Repayment holidays – Sometimes life takes unexpected turns and whether you find yourself starting a family, or you’re short on funds short term, then you may be able to take a payment break for a few months. The payments are then added on to the end of the home loan but the break can be a godsend if you’ve something unexpected to pay for.
Voluntary loan repayments – If you get a bonus, or some unexpected funds for any reason, you can pay off your home loan more quickly. This is usually capped but paying off your home loan early can be a great feeling and you’ll be debt free much quicker if you consider this option.
If you’re considering purchasing a house or apartment, then it’s well worth looking into what you could gain from a graduate loan.
