For many Australian citizens, purchasing a home is truly a rewarding experience, but for many others, it remains only an unfulfilling dream due to a lack of deposit money, lack of credit, or simply lack of income. However, fortunately in Australia there exists many options for which to buy a home. One popular option is called "The First Home Owner's Grant" . Subject to approval, this grant, is available to Australian Citizens or Australian Permanent Residents who have not previously owned and lived in a residential property in Australia. It is also available for those who have purchased an investment property after July 1, 2000 but have never lived1 in it and are currently seeking an owner occupied property. Th grant is assessed by the Government revenue department for the respective Australian state. Funds from the grant are normally used towards purchase costs but in some cases it can be used towards the purchaser's deposit, plus any surplus resulting from the grant can be used for personal use. Some Australian states also offer stamp duty concessions for first home owners.

Deposits and Savings

Genuine Savings
Many lenders will require a potential buyer to show evidence of a minimum savings pattern of 6 or more months if the intended deposit is going to be less than 10% of the property value. This can be proved by showing savings accounts, shares, or managed funds. It is very important to be aware that some lenders are comfortable with a lump sum deposited into a savings account and left in place for the savings qualifying period while some other lenders might require that proof of the lump sum's history be shown as well.

Gifted Deposits
In most cases, a deposit provided from family or friends, or a "gifted deposit" is acceptable towards your purchase. If the applicant has not qualified for deposit using your his or her own savings, a minimum 10% gifted deposit is often acceptable.

Using Equity for a Deposit
There may be instances where a potential buyer might have equity tied up in an existing property that can be used towards the purchase of another property. There are many ways to access your equity including top up loans or refinancing. Usually existing equity will be treated as genuine savings.

Consolidation of Debts
Consolidating debts can be an effective way of combining an existing mortgage, personal loans, car loans, credit cards etc. into one manageable repayment. Usually when consolidating debts, the overall monthly repayment commitment can be substantially reduced, thus freeing up your hard earned cash for other uses. Normally the process involves refinancing and enough usable equity in a property will be needed to do this. Many lenders will consider a total loan amount of up to 90% of your property value when consolidating debts.