First Home Buyers

Opening the door to your first home.

Buying Your First Home: A Step-by-Step Guide for Australian First-Time Buyers

Buying your first home is an exciting milestone, but it requires careful planning to navigate the complexities of the Australian property market. From budgeting and understanding loan options to taking advantage of first-time buyer incentives, there are many steps involved.

Here’s a guide to help you realise your dream of homeownership with Natloans’ support.

Now Is the Perfect Time to Buy Your first home in Australia

Australia’s property market offers opportunities for first-time buyers, particularly with current government incentives.

By purchasing your first home, you’re not just saving on rent but investing in your future and building long-term wealth.

Government programs, like the First Homeowner Grant (FHOG) and other first-time buyer schemes, can reduce upfront costs and make homeownership more achievable.

Understanding Home Loan Options for First-Time Buyers

1. Key Mortgage Types

Choosing the right home loan is essential to buying your first home. Here’s a breakdown of popular options:

Fixed-Rate Home Loans: Lock in a consistent interest rate, which makes budgeting easier.
Variable-Rate Home Loans: Interest rates may fluctuate, potentially reducing overall costs if rates decrease.
Split Loans: Combine fixed and variable rates for flexibility.
Interest-Only Loans: Lower initial repayments, suitable mainly for investors but can also benefit first-time buyers in certain situations.

2. Importance of Loan Pre-Approval

Loan pre-approval gives you a clear budget and strengthens your bargaining position. It helps you act quickly when you find the right property and reduces stress during the buying process. Natloans can assist with pre-approval, so you’re well-prepared to make an offer confidently.

Government Incentives for First-Time Home Buyers

Australia offers several incentives to support first-time buyers. Here’s an overview of programs that can help make buying your first home more affordable:

First Home Owner Grant (FHOG): This is a one-time payment for eligible buyers purchasing a new home. The grant amount and eligibility vary by state.
First Home Loan Deposit Scheme (FHLDS): With as little as a 5% deposit, this program helps first-time buyers avoid lender’s mortgage insurance, reducing upfront costs.
Stamp Duty Concessions and Exemptions: Some states offer reduced or even waived stamp duty fees, lowering your initial purchase costs.
First Home Super Saver Scheme (FHSSS): This allows you to save for a deposit within your super fund, benefiting from reduced tax rates and faster growth.

These programs can make a substantial difference to your budget. Natloans can help you determine which incentives you’re eligible for and guide you through the application process.

3. Budgeting and Saving for Your Home Deposit

Saving for a deposit is often the biggest hurdle for first-time buyers. Here are a few tips to reach your goal:

Set a Savings Target: Determine your target deposit based on property prices in your preferred area.
Create a Savings Plan: Set aside a portion of your income specifically for your home deposit. Automated transfers to a high-interest savings account can accelerate progress.
Consider Low-Risk Investments: High-interest savings accounts or term deposits can help grow your deposit faster.

Budgeting may take discipline, but with clear goals and perhaps advice from a financial advisor, you can stay on track toward your first home purchase.

4. Choosing the Right Property as a First Home Buyer

Finding the right home is both exciting and crucial to making a sound investment. Keep these factors in mind:

Location: Choose a location that aligns with your lifestyle and future plans. Proximity to work, family, and amenities can enhance property value.
Property Type: Decide if an apartment, townhouse, or house is the best fit. Different types offer varied price ranges, maintenance needs, and growth potential.
Growth Potential: Research the suburb’s growth trends to ensure a good return on your investment.
Condition and Features: Evaluate any needed repairs or upgrades, as these can add to your costs.

Natloans can guide you through property research and provide insights on what to look for as a first-time buyer.

5. The Home Buying Process in Australia

Here’s a quick overview of the home-buying process:

1. Set Your Budget: Use online calculators or speak with a mortgage broker to
determine how much you can afford. Factor in upfront costs like stamp duty and legal fees.

2. Start Your Property Search: Use reputable real estate sites and attend open
houses to explore options. Working with a real estate agent can also be helpful.

3. Make an Offer: When you find the right property, submit an offer and be prepared for negotiations.

4. Conduct a Property Inspection: Professional inspections can uncover potential issues, giving you the option to negotiate repairs or a price adjustment.

5. Finalise Your Loan and Settlement: Once your offer is accepted, work with your lender to complete the loan application. On settlement day, the property legally becomes yours, and you receive the keys.

6. How Natloans Can Support Your First Home Purchase

At Natloans, we’re here to make your first home-buying experience as smooth as possible.

Our mortgage specialists guide you through every step, from understanding your loan options to securing pre-approval and navigating government incentives.

With our expertise, you can feel confident in your decisions and focus on enjoying your journey to homeownership.

Q: What is a First Home Owner Grant (FHOG)?

A: The FHOG is a one-time payment for eligible first-time buyers purchasing a new home. The amount and criteria vary by state.

Q: How much deposit do I need to buy my first home?

A: Generally, a deposit of 10-20% of the property’s value is ideal. Some government
schemes may allow lower deposits for first-time buyers.

Q: Can I use my superannuation to buy a house?

A: Through the First Home Super Saver Scheme, you can use super contributions to save for a deposit, benefiting from lower tax rates.

Q: What is loan pre-approval?

A: Loan pre-approval is a lender’s preliminary assessment of your borrowing capacity, giving you a budget to work with and helping you act quickly when you find the right home.

Q: Do I need a buyer’s agent?

A: While not necessary, a buyer’s agent can be helpful for finding and negotiating properties, especially if you’re new to the market.

Q: What are some of the common mistakes First Home Buyers should avoid?

A: Avoiding these common pitfalls can save you stress and money:

Not Researching Government Assistance: Missing out on grants and schemes
can lead to unnecessary expenses.
Underestimating Costs: Beyond the property price, other fees like stamp duty, insurance, and maintenance should be budgeted.
Skipping the Inspection: Structural or maintenance issues can lead to costly repairs if not identified early.
Overlooking the Fine Print: Read all loan terms and seek advice when needed to avoid hidden fees.

Q: How a Mortgage Broker Can Help First Home Buyers

A: A mortgage broker acts as a bridge between you and multiple lenders, guiding you to the best loan product that suits your needs. Brokers also help clarify complex loan terms, improve your loan application, and ensure a smoother process.

Q: What is the minimum deposit for a first home in Australia?

A: A minimum of 5-20% deposit is typically required. Programs like the First Home Loan Deposit Scheme can help those with lower deposits.

Q: How do I apply for the First Homeowner Grant?

A: Check your state’s eligibility requirements and apply through your lender or the
appropriate state government department.

Q: Should I use a fixed or variable home loan as a first-time buyer?

A: Fixed loans offer stability, while variable loans provide flexibility. A mortgage broker can help determine the best option based on your goals.

Buying your first home is an empowering journey, full of learning and decision-making. By understanding the basics of mortgages, saving effectively, and leveraging government support, you can confidently take this next step.

Surround yourself with experienced advisors, such as mortgage brokers and real estate agents, who can guide you throughout the process, ensuring your experience as a first home buyer in Australia is both rewarding and manageable.

By following this guide, you’re on the path to owning your first home in Australia. Good luck and remember that each step brings you closer to achieving your homeownership dreams!

Natloans is here to make your journey to first-time homeownership in Australia as seamless as possible. Contact us today to learn more!

What are you able to claim?

NSW

Grant

First Home Guarantee Scheme
Regional First Home Guarantee Scheme
Family Home Guarantee Scheme

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance required.
Up to 50,000 guaranteed loans per financial year (on the combined schemes)
Property value must not exceed $750,00 for the rest of the state

Benefits

Insurance savings depend on the value of the property

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New homes or substantially renovated homes are eligible up to $600,000
New builds: combined home + land value eligible til in excess of $750,000

$10,000

First Home Buyer Assistance Scheme

New Homes — Stamp duty exemption on home valued equal or less than $650,000; stamp duty reduction $650,000-$800,000
Established Homes — stamp duty exemption on Homes valued equal or less than $650,000; stamp duty reduction on homes valued $650,000-$800,000.
Vacant Land — Stamp duty exemption on land valued equal or less than $350,000; stamp duty reduction on homes valued $350,000-450,000.

Tax savings depend on the value of the property

VIC

Grant

First Home Guarantee
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) required.
Up to 40,000 guaranteed loans per financial year (both schemes combined).
Property value must not exceed $800,000 for Melbourne and regional centres.
Property value must not exceed $650,000 for the rest of the state.

Benefits

Insurance savings depend on the value of your property.

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit fro your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New apartments, houses and townhouses equal or less than $750,000.

$10,000

Homebuyer Fund

State contributes funds in exchange for a share or proportional interest in the property.
Eligible homebuyers can receive up to 25% of the home’s value.
You can buy with a 5% deposit.
Aboriginal and Torres Strait Islander Victorians can receive up to 35% of home’s value.
Aboriginal and Torres Strait Islander Victorians can buy with a 3.5% deposit.
Property value must not exceed $950,000 in Melbourne and Geelong.
Property value must not exceed $600,000 in eligible regional areas.
Ongoing obligations apply.

Insurance savings depend on property value and other factors

Stamp Duty Savings

Stamp duty exemption for new and established homes priced equal or less than $600,000; stamp duty reduction on homes priced between $600,000-750,000.

Tax savings depend on the value of your property.
Further concessions are available depending on other factors.

QLD

Grant

First Home Guarantee Scheme
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) needed.
Up to 40,000 guaranteed loans per financial year (both schemes combined).
Property value must not exceed $700,000 for Brisbane and regional centres.
Property value must not exceed $550,000 for the rest of the state.

Benefits

Insurance savings depend on the value of your property.

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New homes off the plan, new builds or substantially renovated homes valued less or equal to $750,000.

$15,000

Queensland Housing Finance Loan

A low deposit loan for those who can afford to buy or build a home but aren’t able to get private finance from a lender.
You must have a household income equal or less than $141,000 annually.
Covers established and new builds
You can buy a house with a 2% deposit or the difference between the max loan you can get and the purchase price.
No LMI needed.

Insurance savings depend on property value.

Stamp Duty Savings

For Vacant Land; property valued equal or less than $250,000 are exempt from stamp duty, and properties valued between $250,000-400,000 have their duty reduced.
New and Existing Homes: property valued equal or less than $500,000 are exempt from stamp duty, and property valued between $500,000-550,000 are subject to stamp duty reduction.

Tax savings depend on the value of your property.

WA

Grant

First Home Guarantee
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) required.
Up to 40,000 guaranteed loans per financial year (both schemes combined).
Property value must not exceed $600,000 for Perth and regional centres.
Property value must not exceed $450,000 for the rest of the state.

Benefits

Insurance savings depend on the value of your property

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.

Lower cash deposit required to buy.

Home Buyers Assistance

Reimburses certain costs associated with the purchase of a home, including mortgage registration fees, inspection fees, mortgage insurance premiums and lender fees.
Property must be valued equal or lesser than $400,000

Equal to or less than $2,000

Keystart

A low deposit loan for those who don’t meet the requirements of mainstream lenders.
Can buy a house with a deposit between 2% and 10% (subject to property location).
No LMI needed.
Must meet income limits (subject to property location).
Property value must be equal or lesser than $750,000 (subject to property location)
Shared equity schemes available.

Insurance savings depend on property value.

First Home Owner Grant

For new homes only
South of 26th parallel: land and building value must be equal or lesser than $750,000
North of the 26th parallel: land and building value equal or greater than $1,000,000.

$10,000

Stamp Duty Exemptions

Vacant land purchase to the value of $300,000

Tax savings depend on the value of your property

SA

Grant

First Home Guarantee
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) needed.
Up to 40,000 guaranteed loans per financial year (both schemes combined)
Property value must nor exceed $600,000 for Adelaide and regional centres.
Property value must not exceed $450,000 for the rest of the state.

Benefits

Insurance savings depend on the value of your property.

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for a payment towards your home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New homes off the plan, new builds or substantially renovated homes valued equal to or lesser than $575,000.

$15,000

HomeStart

SA government backed lender only
You can avoid additional loan charges
Start Loan of up to $10,000, five year term with no repayments or interest (it is a secondary loan type).
Eligible if your household income is equal to or less than $65,000 (if single) or equal to or lesser than $90,000 (as a couple).
You will need to cover the deposit.

$10,000 (must be paid back at the end of the term)

TAS

Grant

First Home Guarantee
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) needed.
Up to 40,000 guaranteed loans per financial year (both schemes combined)
Property value must not exceed $600,000 for Hobart and regional centres.
Property value must not exceed $450,000 for the rest of the state.

Benefits

Insurance savings depend on the value of your property.

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New homes off the plan & new builds up to any value.

$30,000 (until 30 June 2024)

Stamp Duty Savings

50% discount when you buy an established home valued less than $600,000

Tax savings depend on the value of your property.

ACT

Grant

First Home Guarantee
Family Home Guarantee

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) required.
Up to 40,000 guaranteed loans per financial year (both schemes combined)
Property value must not exceed $750,000

Benefits

Insurance savings depend on the value of your property

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards you home loan.

Lower cash deposit required to buy.

First Home Owner Grant

New homes or substantially renovated homes are eligible up to $600,000
New builds: combined home + land value eligible til in excess of $750,000

$10,000

Home Buyer Concession Scheme

All property types at any price.
A concession cap is implemented for the amount of tax that will be waived.
You must have a household income up to $170,000 with no dependents.
Eligible incomes increase relative to the number of dependent children under your care up to a maximum of $186,650

Capped at $34,790.

NT

Grant

First Home Guarantee
Family Home Guarantee Scheme

Description

Eligible buyers can purchase with a 5% deposit (lenders criteria apply).
Eligible single parents can buy a house with a 2% deposit.
No lenders mortgage insurance (LMI) needed.
Up to 40,000 guaranteed loans per financial year (both schemes combined)
Property must not exceed $600,000

Benefits

Insurance savings depend on the value of your property.

First Home Super Saver Scheme

You can deposit a maximum of $27,500 per financial year.
You can withdraw up to $50,000 toward your first deposit from your super.
From then on, you can withdraw up to $15,000 per financial year for payment towards your home loan.