my first home, trying to get as much out of banks, use first home grant or lease prop

Hi Guys,

I am ready to buy my first home, i am looking to try get as much out of the banks as possible; - i wont be living in the property (staying put at home)

should i go for the first home owners grant or do i tell the banks im going to use it as an investment so they can take that into there calculations and give me more borrowing power.


Is there a way to get the first home owner grant and lease it also?

any help would be greatly appreciated

Cheers
 
The only way to be eligible for the grant is to live in the house for 6 mths but perhaps this is the shortsighted option for $7k or whatever it is. The banks will use 75-80% of the value of the rent to add to your income. This should significantly increase your affordability & allow you to borrow more.
 
putting it up as an investment loan wont necessarily give you more borrowing power, as most lenders will take account a nominal rent living at home. For LMI I think this was $150pw or so. So in many cases this will counter act the increase in borrowing power for investment.
 
I guess it depends how much you want to borrow & the value of the property. If the bank takes 75% of rent & the rent is $500p/w it will more than cover your $150 living expenses.
 
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