Buying Your First Home?

Buying your first home can be a daunting process. In the current market it can also be difficult to save a 20% deposit. If you don’t have a 20% deposit, you may be able to purchase with as little as a 5% deposit, but you may need to pay Lender’s Mortgage Insurance.

What is Lender’s Mortgage Insurance?

This is insurance that you pay and that protects the lender in case you default on your home loan. It is calculated as a percentage of the loan amount.

Applying for a Loan

We can guide you through this process and look at options to help you enter the property market. Some of these options may help you to reduce or remove stamp duty and/or Lender’s Mortgage Insurance. These options include:

  • Family guarantee loans

  • First Home Owner’s Grant

  • First Home Buyer’s Assistance Scheme

  • Home Guarantee Scheme

Pre-Approvals

After reviewing your financial position, we may be able to assist you in obtaining a pre-approval. If you haven’t found a property yet, a pre-approval is an indication from a lender how much you can borrow from them. This may help you to search for a property with more confidence.

Budgeting

Careful budgeting is an important step in saving your deposit. Our living expenses planner can help you to keep track of your expenses to help you grow your deposit.

https://moneysmart.gov.au/budgeting/budget-planner

What are the costs associated with buying a property?

  • Stamp Duty (or transfer duty) is a one-off state-based tax that varies according to the state or territory where you are purchasing. Some states offer discounts to first home buyers, such as the First Home Buyers Assistance scheme in NSW.

  • Other Government Fees – include mortgage registration fees and transfer fees and they vary by state.

  • Pest and building inspections – these will help identify any poor building work and pest problems that may cause issues in the future.

  • Conveyancer or solicitor fees – a licensed conveyancer or solicitor can help you to review the contract of sale and transfer the property into your name. Their fees may vary, so make some enquiries before committing to a particular solicitor or conveyancer.

  • Building Insurance – you will need to obtain building insurance for the property you are purchasing before settlement.

  • Lender fees – lenders may charge an establishment fee and/or valuation fee.

  • Lenders Mortgage Insurance – this is insurance that you pay and that protects the lender in case you default on your home loan. You may need to pay this if you have less than a 20% deposit.

  • Removalist Costs

  • Connection of Electricity, Gas and Telecommunications.