Assessing a First Home Buyer Application

First home buyer files have their own quirks. Genuine savings rules, deposit sources, grant eligibility, and LMI waivers all shape the right strategy for the client.

Confirming the deposit source

Start by understanding where the deposit is coming from. Genuine savings built up over time, a gift from parents, sale of an asset, or a combination. Genuine savings rules at most lenders require at least five per cent of the purchase price to have been accumulated over at least three months in the borrower own accounts.

Checking grant and concession eligibility

First Home Owner Grants, stamp duty concessions, and First Home Guarantee scheme places are all available subject to eligibility rules. Check each one the client may qualify for and factor them into the funds to complete calculation. Getting the grants right can reduce the deposit needed significantly.

Deciding on LMI strategy

For a client without a twenty per cent deposit, the options are paying LMI, accessing the First Home Guarantee, or using a parental guarantee. Each pathway has pros and cons. Model each option for the client so they can make an informed choice.

Key takeaways

✓Confirm the deposit source and genuine savings position
✓Identify every grant and concession the client may qualify for
✓Model LMI, guarantee scheme, and parental guarantee options
✓Match the file to a lender whose first home buyer policy fits

How QualifyMate helps

QualifyMate reads first home buyer files end to end, including deposit sources on bank statements, income documents, and liabilities, so brokers can present a complete picture to the lender.