FHOGS: Are you in the market to purchase your first home, then you are entitled to get a First Home buyers grant which is offered by the NSW government. It is an attractive option for all the first home buyers where this grant has been advanced newly by the federal government.

The First Home Owner Grant Scheme (FHOGS) is fully funded by the NSW Government and administered by the Office of State Revenue (OSR). The Scheme was established to assist first home buyers to purchase their first home by offering a $7000 grant.

The first home owners who are entitled to get the grant despite of their income, the area where they are planning to build or buy the first home. There is no need to pay tax and this grant is not means tested.

The Australian Government publicized a First home owner boost in October 2008, which harmonizes the NSW Government, which sponsored First home Owner Grant Scheme. So based on this announcement from commonwealth:

First home buyers who purchase established homes will receive a boost of $7,000. These will double the first home buyers grant to $14,000.

The first home buyers who are going to build a new home or buying a newly constructed home will get an extra amount of $14,000. This will totally include to an amount of $21,000 to the first home buyers.

Home Loan Professional Packages: Like Credit rating AAA, AA or A rating you will a superior credit profile. In order to attract people who earns large incomes or the people who are known as low risk borrowers, lenders are offering a special loan deals which are called as Professional packages as a rewards to these customers.

Once restricted to professionals such as lawyers and accountants, these packages are now available to a wide variety of purchasers with sufficient income or aggregate loan size.

Discounts of 0.2 to 0.7 per cent off lenders’ standard variable interest rate and up to 0.25 per cent off fixed interest rates are offered by Professional package depending on the size of the loan.

These package offers will not help in saving rates discounts but also offers a variety of other discounts on accounts such as credit cards, transaction, margin loans and insurance.

Think about the favorable offers and non favorable things i.e., pros and cons of the professional package.

Professional Package Home Loan Pros are Fully featured account e.g. redraw, split loans, internet and phone banking, Interest rate discounts on the standard variable rate, Entitled to the benefits of fee free transaction accounts and insurance product discounts and No establishment fees and no ongoing monthly fees on your loans.

The Disadvantages are an annual fee applies to this product

The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility

The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility

A Home Equity Loan allocates you a lot of flexible features with your finances.

With an intention to carry out renovations, invest in shares, or purchase other’s investment property or bill payments you can utilize this line of credit.

Know about the pros and cons prior you make a decision on a Home Equity Loan:

Advantages of a Home Equity Loan

* A home equity line of credit offers a much lower rate of interest than credit cards * Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards * Flexible payment options - Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want * Accessibility - Money is easily accessed by cheque or ATM card linked to this loan * Repayments can be made in full or on a monthly basis * Extra repayments are allowed at any time * Cheque book facilities are available if needed

Cons of a Home Equity Loan

* The interest rate of a home equity line of credit changes with the prime rate. There is also a margin that is added to the interest rate, which is fixed and is determined at the time of application * Typically attracts higher interest rates than your standard variable rate loans

Low Doc Home Loan: Are you scratching your head wondering whether you can attain finance or not if you are self employed and you don’t have your fiscal conditions in place.

A Low Doc Home Loan is a very plain and simple fast loan offered to all the self employed borrowers. Since they are not in a position to provide full financial statements and also they cannot present income evidence.

More and more lenders are adopting the growing trend of low doc home loan products on the market with many lenders offering standard and premium ‘low-doc loans’, with the choice of fixed or variable interest rates.

DirectMoney HomeLoans helps to get you access to these hundreds of lenders and the leading home loans on the market, to provide you with the best rate and a marked home loan for you.

Based on the lender, some people require you to pay for Lender Mortgage Insurance (LMI) if the loan reaches 80% loan to value ratio(LVR). A higher interest rate is charged by some lenders for these products to self employed customers as their risk related is high. The interest rate is reduced to you by the lenders if the customers show their tax assessments.

Consider the following pros and cons before you decide on a low doc home loan:

Advantages

Financial proofs are not necessary Instead of tax returns simple financial statement is required Irregular income and non-traditional sources are measured

Low Doc Home Loans Cons

Higher interest rates and fees are to be paid Appropriate to higher repayments your cash flows might suffer