First Home Buyers Guide from Austral Mortgage
Step 8: Exchange Contracts
Your contract of sale is a document that is usually prepared by the Real Estate agent or the vendor’s solicitor. It outlines your offer, the date of settlement and any conditions that must be met before the sale goes ahead.
Your solicitor or conveyancer will review this document and help you understand the contract before you sign it. When exchanging contracts, you will also be required to pay the deposit (usually 10% of the agreed price). The funds will be placed into the real estate agent’s trust fund and made available to the vendor upon settlement.
Once you’ve exchanged contracts, your solicitor will do all the conveyancing (which is the legal transfer of the property into your name).
Now is also the time to shop around for the home and contents insurance to protect your new home. The insurance policy has to be made out in your financier’s name or their trustee. You can contact Austral to confirm the exact details prior to shopping around.
Deposit Bond Guarantees
If your deposit is tied up elsewhere and you don’t want to wait to exchange contracts, talk to a member of the Austral team about Deposit Bond Guarantees. A Deposit Bond Guarantee can act as a cash deposit substitute in the time between signing the contract and final settlement of the property. A Deposit Bond Guarantee can be issued for all or part of the deposit amount required.
Useful First Home Buyer Links
FHOG Online offers information for all States and Territories in one place.
State Revenue Offices:
- NSW Office of State Revenue
- QLD Government Office of State Revenue
- WA Department of Finance
- NT Department of Treasury and Finance
- VIC State Revenue Office Victoria
- SA Department of Treasury and Finance
First Home Buyers
If you’re buying or building your first home, you may be eligible for benefits under the First Home Owner Grant Scheme (FHOG). Once you’ve exchanged contracts, post the original FHOG application along with all the requirements to your lender for processing. Austral can arrange for the FHOG to be available at settlement. Application forms and and more information about the Scheme are available from the website of your State Revenue Office.
Stamp Duty Concessions
In addition to the First Home Owner Grant, some states also provide stamp duty exemptions and concessions to the first home buyers. Check out your State Revenue Office website above for more details.
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