First Home Buyer
Shopping for your first home?
Buying your first home can be a stressful experience. It's a big step, especially if you’re used to living with your parents or renting while studying or working. Plus, getting a mortgage can seem incredibly complex at first glance.
Our aim is to help make the process of buying a home easy and rewarding.
Benefits of Being a Homeowner
What is a mortgage?
Because everyone’s financial situation is different, the best first home loan for you may not be the best option for somebody else.
A home loan typically has a 25-year or 30-year loan term and is repaid via regular payments, usually monthly repayments, but may be more or less frequent.
What should you look for?
It’s important to compare different home loans and look at all the options, including:
The lower the rate, the lower your mortgage payments. Some banks offer special discounted interest rates for first home buyers, but once the introductory “honeymoon” period ends, you’ll revert to a higher rate.
Fees may be charged annually or when you have certain features. or facilities attached to your mortgage.
The comparison rate combines the loan interest rate with standard fees and charges. This can provide a more accurate indication of the loan's overall cost.
It's also worth comparing the features and benefits of different home loans, to work out which ones may help you better manage your repayments and enjoy extra value.
What do first home buyers need to know?
As a first homeowner there is much to consider and plenty to research.
Firstly, you need to work out how much you can borrow and how much you can afford to repay. A key to this step is to have an accurate and detailed budget that takes into account all expenses associated with purchasing a property. This will include stamp duty, council rates, moving costs, conveyancing and other fees.
Many first homeowners forget to budget for added extras that come with home ownership. Electricity, water, other utilities and insurances all add up. Money for maintenance and even simple things, like stocking up the fridge and pantry for the first time, are hidden costs that catch many new homeowners out. We can help you identify these extra costs.
Popular Home Loan Features
Pay off your loan faster, so you’re charged less interest.
Take extra repayments back out of your loan if you need the cash.
A separate savings or transaction account linked to your home loan, included when calculating your home loan’s interest charges to help you save some money. For example, if you have a $350,000 mortgage and $10,000 in your offset account, you’ll be charged interest as if you only owed $340,000.
Home Loan Grants & Schemes
We'll help you navigate the myriad of home buyer grants and schemes available around the country.
Here are some examples some New South Wales:
First Home Owners Grant (New Homes)
First home buyers building a new property will be entitled to a $10,000 grant on homes worth up to $750,000. First home buyers purchasing a new property worth up to $600,000 will be entitled to a $10,000 grant. This policy aims to provide assistance to first home buyers and stimulate the construction of new dwellings.
First Home Buyer Assistance Scheme
Most banks and lenders require a minimum deposit of 20% of the property’s value for the borrower to be exempt from lenders mortgage insurance (LMI). This scheme allows first home buyers who can’t reach this threshold to take out a loan if they have saved at least 5% of the value of the property they are buying. The government will underwrite the loan so that borrowers do not have to pay LMI.
The scheme is open to individuals who are earning up to $125,000 per year, as well as couples with combined earnings of up to $200,000. Maximum purchase price in capital cities and regional centres is $700,000. Rest of the state is $450,000.
Stamp Duty Exemption
Stamp Duty, the tax paid to the state government, when buying residential property can be an obstacle for first home buyers.
The NSW Government is abolishing this duty on new and existing homes worth up to $650,000.
For properties valued at between $650,000 & $800,000, the duty concession will be gradually reduced (calculated on a scale).