First Home Buyers Loan in Mountain Creek
Brokering a Home Loan for a Couple in Mountain Creek
How Loanright Financial Services Helped a Mountain Creek Couple Secure Their Dream Home
Mountain Creek, a sought-after suburb on the Sunshine Coast, is known for its family-friendly atmosphere, proximity to beaches, and excellent schools. For a married couple looking to settle in this vibrant community, finding the right home was a thrilling experience. They had their eye on a three-bedroom house valued at $690,000. With $210,000 saved for a deposit, they were well on their way, but navigating the complexities of securing a home loan was still a challenge. That’s where Loanright Financial Services stepped in, guiding them through the process and ensuring they understood the critical factors like Loan-to-Value Ratio (LVR), Lender’s Mortgage Insurance (LMI), and the First Home Owner Grant (FHOG) in Queensland.
The Property Purchase: A Three-Bedroom House in Mountain Creek
Mountain Creek’s mix of natural beauty and modern conveniences made it the perfect place for the couple to buy their first home. The three-bedroom house they found was ideally located, offering plenty of space and a comfortable environment to raise a family. The property was valued at $690,000, which was within their budget, and they had saved $210,000 for a deposit.
With a substantial deposit in hand, the couple’s next step was securing a loan for the remaining $480,000. However, they needed expert advice to ensure they got the best deal and didn’t face unnecessary costs.
Understanding Loan-to-Value Ratio (LVR)
One of the most important concepts in home financing is the Loan-to-Value Ratio (LVR). This ratio is used by lenders to assess the risk associated with the loan. It’s calculated by dividing the loan amount by the property’s value and is expressed as a percentage. Lenders typically prefer an LVR below 80%, as anything higher can increase the risk of default from the borrower’s perspective.
For this couple:
- Property value: $690,000
- Deposit: $210,000
- Loan required: $690,000 – $210,000 = $480,000
Their LVR came out to approximately 69.6%, comfortably under the 80% threshold. This was excellent news because it meant they could avoid paying Lender’s Mortgage Insurance (LMI), a common additional cost for homebuyers whose LVR exceeds 80%.
Avoiding Lender’s Mortgage Insurance (LMI)
Lender’s Mortgage Insurance (LMI) is a safety net for lenders in case a borrower defaults on their loan. When a borrower’s LVR is above 80%, lenders typically require LMI to protect themselves from the higher risk. While LMI protects the lender, the cost is borne by the borrower, and it can add a significant amount to the overall cost of purchasing a home.
Thanks to their 69.6% LVR, the couple did not need to pay LMI. Had their LVR been over 80%, they would have been required to pay this insurance, which could range from a few thousand dollars to tens of thousands, depending on the loan amount and LVR. Loanright Financial Services ensured that the couple’s finances were structured in a way that avoided this extra cost, potentially saving them thousands of dollars.
First Home Owner Grant (FHOG) in Queensland
As first-time homebuyers, the couple was keen to understand if they were eligible for the First Home Owner Grant QLD (FHOG), a government initiative designed to help first-time buyers purchase or build a new home.
In Queensland, the FHOG offers $15,000 for those purchasing or constructing a new home, provided the property’s value is under $750,000. The couple’s three-bedroom house was valued at $690,000, but because it was not newly built, they were not eligible for the FHOG. The grant only applies to newly constructed homes, not established ones, which is an important distinction for first-time buyers to consider.
Loanright Financial Services provided them with a detailed explanation of the FHOG, ensuring that they understood why the grant didn’t apply in their case but also advising them on other potential first-time buyer incentives and schemes that could be available to them in the future.
Choosing the Right Home Loan
With their LVR in check and no LMI required, the couple turned their attention to finding the right home loan. Loanright Financial Services played a key role in this process, using their expertise to sift through various loan options and tailor a solution that matched the couple’s financial situation and future plans.
Some of the loan options that Loanright considered included:
- Fixed-rate loans: These loans offer the security of a consistent repayment amount for a fixed period, making them a safe choice for those wanting to budget with certainty.
- Variable-rate loans: These loans fluctuate with the market interest rates, which can offer savings if rates decrease but can also lead to higher repayments if rates rise.
- Offset accounts: A feature that allows borrowers to reduce the interest charged on their loan by linking it to a savings or transaction account, effectively reducing the overall loan term and interest paid.
After thorough analysis and discussion with Loanright, the couple decided on a variable-rate loan with an offset account. This option provided flexibility and the potential to reduce their mortgage faster while giving them some room to adapt to changing financial circumstances.
A Smooth Settlement Process
Once the couple had chosen their loan, Loanright Financial Services managed the entire application and settlement process, liaising with the lender and ensuring all documentation was submitted promptly. They made sure that everything ran smoothly, so there were no delays in settling on their new home.
A New Chapter in Mountain Creek
With the help of Loanright Financial Services, the couple successfully navigated the complexities of securing a home loan, avoiding unnecessary costs like LMI, and choosing a mortgage that suited their lifestyle. Now, they are the proud owners of a beautiful three-bedroom home in Mountain Creek, ready to start the next exciting chapter of their lives. Thanks to Loanright’s expert guidance, they achieved their goal of homeownership with confidence and ease.
Case Study Details
- Location – Mountain Creek QLD
- Type of Loan – First home buyers’ loan
- Purpose of Loan – Brokering a loan for a married couple purchasing their first home

Contact
1A / 14 Smith Street, Moolooalba, QLD 4557
How To Find Us
Driving directions
Our office is located on the corner of Smith and Muraban Street, just a block back from the Mooloolaba Esplanade.
Parking information
There are a few onsite parking spaces available, including disabled parking, as well as street parking and paid hourly spots, which are available in the multi-story parking facility across the road from our office.
Wheelchair friendliness
There is wheelchair access to the office, as well as wheelchair friendly restrooms and parking.
Pet friendliness
We are a pet friendly office; however, we do ask that you kindly keep dogs on a lead for their safety as we are near relatively high traffic road.