The lenders are still offering Single Parents to buy their home loan as little as 2% Deposit. These loans apply to any single parents who are citizens and have a dependent child.
For those living with family, or trying to break out of the rental market, this can be a real opportunity to feel secure in your own home.
If you have owned a property before, this is fine, as these loans are to assist Single Parents to enter the property market after separation, divorce, or for those who have never been in a relationship.
The Government will pay your Mortgage Insurance at settlement. If you have owned a property before, you will need to pay stamp duty. Stamp duty differs from state to state, and is based on the price of the property.
Proving your relationship to your child will be required but there are many sources of documents you can use, if one does not suit you. Some changes appear to be on the horizon, with the Government possibly allowing permanent residents and other types of parents to reflect the current society norms – Aunties and Uncles, Grandparents, Step Parents, and other types of Parents to children who may not be their own biological children. Some children are in these types of care arrangements and providing a home and stability for families is very important. We do not have a date for this change as yet.
Single incomes are proving to be a challenge with rising interest rates with some parents qualifying for units and townhouses in this housing market. We will try and use as much income as we can – Single Parent Pension, Carers Payment, Family Tax Benefit as well as Wages and Child Support, depending upon the lender and ages of the children. Income thresholds apply, and property price caps apply – differs from state to state.
An example for buying a home shows the costs – $300k unit, deposit $6,000, plus $3,000 legal fees/government fees (estimate only, may differ from state to state) for a First Home Owner. Please note, body corporate fees apply in complexes and this is an additional cost to your day to day expenses so you need to consider these costs and if they are affordable for you. These costs can also continue to rise over time. Some property inspections may include – do you have separate water meters, or does the whole complex just have one? Check your strata insurance has been included in the quoted body corporate fees. Ask your conveyancer about the sinking fund, and check for possible major renovations for the next 5-10 years (a report exists from the Body Corporate).
The information above is of general nature only, no advice and does not apply to your situation. If you would like to know more about how a loan applies to your current situation, please feel free to call 0403 211 361 or email hello@georgefinancialservices.com.au
