FHOG Victoria

Eligible first home buyers in Victoria can claim the governments First Home Owner Grant. This is currently at an increased level, but as of January 1 it will revert back down to the original $7,000. This grant is aimed at helping first home buyers get into affordable housing.

There are also stamp duty concessions and a First Home Bonus Scheme available in Victoria. Information is available about these grants and concessions at http://www.sro.vic.gov.au/sro/SROWebSite.nsf/rebates_fhog.htm

Here's our top tips for first home buyers:

Reduce debt. Credit cards, car loans, store cards… they are all debts, and they all affect your credit score. They also limit your ability to pay off your home loan, because you are still directing funds into these other loans. Potential interest rate hikes also need to be factored in. Most people who are currently having their homes repossessed were only just getting by' and couldn't afford any increased payments.

Understand the market. Yes, you may not be a property expert, and frankly, some of the hype and jargon sounds like a foreign language, but take some time to study the mortgage market and property markets. Once you start investigating you will actually find it incredibly helpful to understand the market. Keep up to date with house prices, are they going up, down or remaining steady? A particular suburb may have recently emerged from a slump and is ready to be the next great investment area. Look at property performance, recent sales and rental incomes for the properties in each area of interest. You need to know if you are getting a good deal once you put an offer in on a property and knowing the current market it the best way to keep informed.

View top choices a second time because practive makes perfect and the more your view the better your gut instinct becomes. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around.

Check a professional to check out the house. Before you sign a contract it is advisable to have the house inspected for defects and problems. The Royal Institute of Architects can give you a pre-purchase inspection report for a set fee. See www.architecture.com.au

Make sure you source lenders and their home loan products. Compare rates as well as features, ongoing fees and charges and the level of service the lender offers. Your mortgage broker can help search through several home loan types and point out the ones that would best suit you.

Look at the tax benefits available to home owners. Your mortgage broker can assist with this and advise one capital gains tax, negative equity and offer insights into how to build equity in your home.

Once you have your mortgage, look at ways to pay the loan off quicker. See if your loan lets you make extra repayments. This is a great strategy to pay less interest and pay the principal down faster.

We can help you find a fantastic home loan and show you how to manage your repayments. Call us today on

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From October 1st 2009 the First Home Owners Grant is reduced to $10,500 for those buying an existing home, and $14,000 for those building or buying a new home. Then from December 31 it will be cut back to the original $7,000 for both categories.