department of credit research

FHOGS: If you are in the market to buy your first home, you may be eligible for assistance from the NSW Government in the form of a first home buyers grant. This grant has recently been boosted by the Federal Government, making it a very attractive option for first home buyers.

The NSW government has totally financed this First Home Owner Grant Scheme (FHOGS) and managed by the office of State Revenue (OSR). The first home buyers who are ready to buy the first home are approved for a loan of $7000 as these people are helped by the scheme.

Regardless of their income, and the area where they are preparing to buy or build or the first home valuation, the first home owners are qualified to receive the grant. This grant is not earnings tested and no need to pay tax on it.

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 are going to buy homes which are already established will receive a boost of $7,000 and it gets doubled to the first home buyers grant to $14,000.

First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000. This will take their first home buyers grant to $21,000.

Home Loan Professional Packages: You have a Superior credit profile is nothing but a credit rating like AA, A, or AAA credit rating. Lenders offer special loan deals to catch the attention of people on higher incomes or those who are low-risk borrowers. These special loans are known as professional packages as a gift 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.

Depending on the size of the loan a Professional Package generally offer 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.

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.

Consider the following pros and cons before you decide on a professional package with your home loan:

The Advantages are Fully featured account e.g. redraw, split loans, internet and phone banking, Interest rate discounts on the standard variable rate, Other benefits like Fee Free Transaction accounts and insurance products discounts, and No establishment fees and no ongoing monthly fees on your loans are the benefits offered by some home loan lenders.

The Disadvantages are an annual fee applies to this product

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