First Home Buyers

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First Home Buyers

Buying your first home can be daunting and sometimes it seems as though it may never happen.

What we have found is that consistency with savings pays off and although you may want to fly the coop now, you may need to get your ducks in a row before this dream becomes a reality.

The best thing you can do is to:

Pay your rent and bills on time
Save some money
Get your living expenses in order by creating a budget and organising your bank accounts
Stop using short term credit. This means no more after pay, zip pay, zip money, buy now pay later schemes.

If you can’t afford it, then don’t buy it. You see the lenders are looking for someone who can prioritise a mortgage and live within their means.

Here are some options available for first home buyers:

First Home GUARANTEE (FHG)

If you have genuinely saved 5% deposit + costs, you may be eligible for the FHG. Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit of as little as 5 per cent (lenders criteria apply).

Get a guarantor

One way to potentially get into your own home sooner is by having a family member act as a guarantor. Many lenders allow parents or someone who is close to you, to use the equity in their property as security for your home in lieu of you saving the full deposit required. This person is known as a guarantor.

Transfer Duty Concessions (previously known as Stamp Duty)

There are several things to factor in when calculating what the transfer duty will be on the property you buy and what exemptions will be for you, in your specific state. For FHBs though, as part of the First Home Buyer Assistance scheme, you may be exempt from transfer duty on new homes, or eligible for discount.

First Home Owner Grant (FHOG)

State governments’ initiative to help first home owners achieve their first home dreams sooner. It does require you to be buying or building your new home and depending on your location, there will most likely be a cap on the value.

Another option for First Home Buyers and previous homeowners is:

Family Home Guarantee

This is for eligible single parents with at least one dependent child in purchasing a family home, regardless of whether that single parent is a first home buyer or a previous homeowner with as little as 2%.

The first step is to be armed with some knowledge and a plan of how to get into your first home. This is best done by booking a strategy session with us to firstly see where you are at now and secondly see what you need to do to get into that home.

First Home Buyers

See how Money It Is can help you