Empowering Dreams: From Renting to Owning Your Guide to Buying Your First Home

From Renting to Owning: Your Guide to Buying Your First Home

Securing your own piece of real estate is a very Australian ambition. And it's a fantasy that many would have you believe is becoming increasingly out of reach for first-time home purchasers. We're here to tell you that it's not as difficult as you think, and with a few clever tips, tricks, and a little bit of advice, you'll be climbing the ladder to your dream home in no time. There is no time like the present! 

Here's everything you need to know.

A beginner’s guide to buying your first home

Purchasing your first home is an exciting decision that takes extensive research and planning. As a first-time home buyer, it can be tough to know where to begin and what steps to take. To make things easier, we've compiled a list of topics to think about and measures to do along the route.

1. Start saving a home loan deposit

Ideally, when buying a property you’ll need a deposit of 20% or more of the purchase price of the property.

2. Find out your budget

As great as it would be to buy a waterfront mansion, it may not be a financially savvy option for everyone. It’s important to understand your borrowing capacity and have a budget in place to avoid any unsavvy financial decisions that could cause you mortgage stress.

3. Get help from a mortgage broker

A common misconception is that mortgage brokers charge hefty fees for their services. In reality, many don’t charge a fee at all, so you won’t be out of pocket for getting home loan help.

Not only are many mortgage brokers and home loan specialists free to use (including our own), but they’re also a valuable resource to help you navigate the world of property. Got questions about interest rates? They can share how interest rates will affect your repayments and loan term.

4. Review your credit report and find out your credit score

Your credit score is an indicator of your credit history. Lenders will look at your credit score when you apply for a home loan to gain an insight into what kind of borrower you are. The higher your credit score, the more trustworthy you appear as a borrower.

5. Get pre-approved before you start your search

Before you start the search for a property, it may be a good idea to get pre-approved. Home loan pre-approval, also known as approval, in principle, is an indication of how much a lender may be willing to lend you.

6. Check if you’re eligible for any government grants

With housing affordability dropping, both federal and state governments have introduced several initiatives to help home buyers purchase their first property.

You might be eligible for a number of first home buyer grants that can help you save and potentially get you on the property ladder sooner than you expect.

Government Benefits Available

Make the most of the financial benefits available:

1. First Home Owner Grant – The First Home Owner Grant provides eligible Australians with a one-off payment towards the purchase or building of a residential property to live in. The grant varies by state and territory and applies exclusively to new builds in many instances. For state-specific advice, visit firsthome.gov.au
2. First Home Super Saver Scheme – Put your super to work before you hit retirement age by investing your super savings into your first home. The Super Saver Scheme allows you to save while benefiting from the concessional tax treatment for superannuation. Only your voluntary contributions can be accessed as part of the First Home Super Saver Scheme. Find out here if you’re eligible and how to apply.
3. First Home Guarantee Scheme - The government introduced the Home Guarantee Scheme to help borrowers with a deposit of at least 2% qualify for a home loan without paying Lenders Mortgage Insurance (LMI). Typically, to avoid paying LMI, you need a 20% deposit. However, under the scheme, eligible borrowers can avoid LMI even with a deposit as small as 2%, since the government will guarantee up to 18% of the value of the property

 Why should you be buying your first home now?

We recognise that the transition to homeownership might be intimidating, but it is simply a matter of becoming educated and feeling secure in taking the first step toward protecting your future. Remember, everyone starts somewhere, and it's not as difficult as it may appear. Wealthy You can assist you in every step of the process. We're professionals in finding the right property and lender for you, no matter what your situation is - so contact us today and let's get started on your first purchase trip!