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 per cent 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.

A mortgage broker can help you understand the scheme, and the risks. We have access to over 30 lenders participating in the scheme, and your broker will help you find a lender from our panel that’s right for you.

Our team at Loan Market can help you navigate the options to map out the right approach for your situation. Having a plan in place and talking through it with a broker could make a real 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. For loan applications you’ll need to provide key documentation such as pay slips, proof of savings, ATO notices of assessment and identification.

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.