Key tips for first home buyers

To claim the five per cent deposit, you must be a first time buyer and an Australian citizen or permanent resident. You can buy with a family member, friend or partner as long as they haven’t owned a property in the last 10 years. You can use the Home Guarantee Scheme Eligibility Tool to check your eligibility.

Even though the deposit is lowered, there are still other upfront costs such as stamp duty, legal fees, building inspections, property inspections, and moving, which you’ll need to budget for. Possible stamp duty concessions vary by state. A lower deposit also means a 95% loan, so interest and repayments will be higher compared to paying a higher deposit upfront. Make sure to take these costs into consideration when saving your deposit - having an extra buffer will help you avoid being stretched thin.

A mortgage broker can help you understand the scheme, and the risks. Over 30 lenders are participating in the new scheme, your broker will be able to help you find a participating lender that’s right for you.

Our partners at Loan Market can help you navigate the options to map out the right approach for your situation - with competition expected to intensify, having a plan in place and talking through with a broker could make all the difference. It’s never too early to find a broker and start planning.

Through your broker, you can apply for a loan pre-approval to give you an idea of how much you’re eligible to borrow to help move fast once you spot a property you’re interested in. For loan applications you’ll need to provide key documentation such as pay slips, proof of savings, ATO notices of assessment, identification, etc. so make sure you prepare in advance to speed up the process.

With the new scheme now in place, make sure to research your ideal suburbs and keep up to date with what’s happening in your preferred market. Your local Ray White agent can provide the latest house price reports and insights to help give you a better idea. Every situation is different, and timing here is crucial, so if you have any questions, reach out to your nearest Loan Market broker.