By Ranju Kumar
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 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.
Eligible first home owners can receive the grant regardless of their income, the area in which they are planning to buy or build, or the value of their first home. The grant is not means tested and no tax is payable on it.
The Australian Government announced a First Home Owner Boost in October 2008, which supplements the NSW Government funded First Home Owner Grant Scheme. According to the announcement from the Commonwealth:
* First home buyers who purchase established homes will receive a boost of $7,000. This will double 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: Like credit rating e.g. AAA, AA or A rating, a AAA credit rating means you have a superior credit profile. In an effort to attract people on higher incomes or those regarded as low-risk borrowers, lenders offer special loan deals known as professional packages to "reward" 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.
Not only will you save on the rates discounts but a Professional Package also offers a range 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:
Pros of a Professional Package Home Loan
* Fully featured account e.g. redraw, split loans, internet and phone banking
* Interest rate discounts on the standard variable rate
* You may be eligible for other benefits such as fee free transaction accounts and discounts on insurance products
* Some Home Loan lenders also offer no establishment fees and no ongoing monthly fees on your loans
Cons of a Professional Package Home Loan
* An annual fee applies to this product
About The Author
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