Callum wants to move out of home and find a place of his own. Find out how he can afford it.
Callum is 26 years old and is ready to move out of his parents’ house. He earns approximately $2,200 a fortnight as a tradesperson and has saved up $12,000 for a home loan deposit.
By doing some research on the HomeSeeker SA website, Callum can see that there are a number of expenses involved in buying a home that he hadn’t counted on, such as stamp duty and conveyancing fees. But he learns that if he buys a house and land package he will pay less stamp duty.
Callum finds a new two-bedroom house in the northern suburbs priced at $280,000. Because he's never purchased property before and it's a newly built home, he's eligible for the $15,000 First Home Owner Grant.
He talks to HomeStart Finance and finds out that he can buy a house with a 3 per cent deposit under their Graduate Loan as he has a Certificate III for his trade.
Callum works out his finances as follows.
|
Monthly household income after tax |
$4,396 |
|
Home purchase price |
$280,000 |
|
Stamp duty and other fees |
$16,640 |
|
Borrowed amount ($296,640) less deposit ($18,000) and First Home Owner Grant ($15,000) |
$269,940 |
|
Monthly repayments on HomeStart Finance Graduate Loan |
$1,419 |
Disclaimer
This fictional case study is based on real life experiences of home buyers. Before buying a home, it is strongly recommended you seek professional advice on your personal financial circumstances and your ability to pay a mortgage.
As at December 2021
