Maximise Your Deposit
Purchasing your first home should never be an impulsive decision. It requires careful saving and thorough research. Financially, the larger your deposit, the better, as it will lower your future mortgage repayments and improve your standing with lenders.
While saving a 50% deposit for your first home may not be realistic, aiming for 20% is considered ideal. This amount helps you avoid paying lender’s mortgage insurance (LMI).
If reaching 20% is not achievable, there's good news. The First Home Loan Deposit Scheme (FHLDS), introduced in 2020, allows first-time buyers to enter the market with as little as a 5% deposit.
While saving a 50% deposit for your first home may not be realistic, aiming for 20% is considered ideal. This amount helps you avoid paying lender’s mortgage insurance (LMI).
If reaching 20% is not achievable, there's good news. The First Home Loan Deposit Scheme (FHLDS), introduced in 2020, allows first-time buyers to enter the market with as little as a 5% deposit.
Leverage Government Grants
The FHLDS is just one of several grants you might be eligible for as a first home buyer in Australia. Make sure to apply through your lender and find the right financial provider for your needs.
Additionally, you may qualify for the First Home Owner Grant. For instance, in Queensland, this could provide $15,000 toward purchasing or building your new home. If you’re unsure of your eligibility, an eligibility test can help clarify.
Other programs, like the First Home Super Saver Scheme, are also available to assist first home buyers. Be sure to research all options!.
Additionally, you may qualify for the First Home Owner Grant. For instance, in Queensland, this could provide $15,000 toward purchasing or building your new home. If you’re unsure of your eligibility, an eligibility test can help clarify.
Other programs, like the First Home Super Saver Scheme, are also available to assist first home buyers. Be sure to research all options!.
Account for Additional Costs
When budgeting for your first home, don’t forget the extra expenses. For a $500,000 home, it’s easy to think you'll only need to borrow the required percentage of that amount, but there are other costs to consider.
Conveyancing fees, stamp duty, building and pest inspections, mortgage insurance, and bank fees can quickly add up and impact your deposit. Be aware of these hidden costs and consider them before finalizing your purchase.
Search for the best interest rate & loan terms
That’s where we come in. A mortgage is a long term debt, so even the smallest difference in interest rate will save you a lot in the long run. We will compare rates from multiple lenders and take the time to explain the differences between fixed rates and variable rates.
Obtaining a pre-approval from your lender before you start actively searching for properties is also higher regarded. This will help focus your budget with a clear dollar amount to stick to, and avoid the disappointment (and sometimes additional fees) that come with making an offer without the cash to back it up. It also shows the seller you’re serious about purchasing the unit or house they are selling because you have the money ready to go
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Shop For The Right House
Ready to find the perfect home to call your own? Start by searching online listings and filtering for location and budget ranges. Talk to real estate agents, attend a few open houses and auctions to see how it all works. Don’t forget the research you did in step 1 so you know the median price of units and houses within the location you want because it’s easy to forget the budget when emotions are running high.
Remember not to rush this stage – there’s a lot of properties out there.
Remember not to rush this stage – there’s a lot of properties out there.