First home buyer basics
Buying your first home is an exciting process, but it can also prove to be a daunting experience for many people who are absorbing lots of new information. It is important to research and gain a thorough understanding of the market, so you can make the right choice in regards to the property and mortgage that you choose.
Things to consider when buying your first home:
1. How much can I borrow? Knowing how much you are able to borrow is really important as it determines what sort of property you can buy and where you are able to purchase. The amount you can borrow depends on your income and financial situation. A lending representative can work out how much you are able to borrow so that you can have this at hand when you enter the market and start searching for a home.
2. What is my budget? Your budget will be determined by the amount you are able to borrow and the deposit you are able to save for the purchase.
3. What deposit is required? Dependent on the product you choose, and how much you have saved, you will generally need a 5-20% deposit
4. Am I eligible for the first home owners grant? You are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of living in the property as your principle place of residence within 12 months of settlement and for at least 6 months. It is important to refer to each state website for the grant eligibility as the state conditions vary.
Most lenders are able to lodge your first home owners application on your behalf so that the grant is available for you at settlement. You must complete the state specific application form, and provide the original application and required documentation before this can be lodged.
5. How much is the first home owners grant? The grant is usually $7,000, and is provided to eligible first home owners at or after settlement
For further information to assist you in buying your home, visit our calculators page to compare loans or determine mortgage repayments applicable to your scenario.
Other first home buyer related topics:
First home buyer basics 2 - Choosing a property
For state specific information regarding the first home owner grant please visit: