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The First Home Owner Guide


Buying your first home is one of the best experiences in life! - that journey of working towards your goal; building a deposit, working out your priorities, looking at all the options available and finding that perfect First Home.

So where to start? There are several options to secure finance for your first home, and they vary depending on where you’re at.

First, get all your information together – you will need to have clear what your income and budget are. This information will tell you not only how much you have for debt servicing; but also how much you might be able to save after all day to day expenses are paid.

Next is finding out how much you have available for a deposit. The ideal scenario is a 20% deposit from your own savings. This is 20% of the value of the property, so if you are purchasing a $300,000 property, the ideal deposit would then be $60,000. Do not forget Stamp Duty and Government Fees are added on top of the property price (approximately 5% of the purchase price). However, if you don’t have that 20%, there’s still options to borrow up to 97% (in some cases) of the purchase price. Keep in mind the latest, will incur in Lenders Mortgage Insurance, which can add a hefty amount to the final price.

Across Australia, there are different concessions for Stamp duty and First Home Owner Grants. In South Australia, the $15,000 First Home Buyer Grant of is available for newly built properties and for anyone building at the time of application. The Grant is no longer applicable for existing residential homes. Lenders on the other hand have developed special offers for First Home Buyers including discounted rates or cash backs for Conveyancing Fees.

As exciting as buying your first home can be; it can also easily become a daunting process. Don’t have much of a deposit? Low income? Self employed or contract worker? Worried about your credit rating? Let’s talk! We can go through your current circumstances, and look at all options available. A bit of planning can set you up for success!

Lastly, some food for thought – things you can expect we can talk you through during our consultation.

  1. First Home Owner Grant

  2. Lenders Mortgage Insurance or low deposit loans

  3. Interest only / Principal and interest loans

  4. Offset account

  5. Variable rate / Fixed rate loans

  6. Investment loans / Owner occupied loans (Future tax deductions)

  7. Approved in principle / Unconditional approval

  8. The Role of the conveyancer / solicitor

  9. Professional packages vs. Basic

  10. Borrowing extra funds (Buffer) / Savings left over

  11. Difference between the deposit for purchase and funds required at settlement

  12. Guarantors

  13. Valuations

  14. Banks vs. Optimo Home Loans (the added value)

  15. Repayment frequency

  16. Stamp duty and other Government fees

  17. Genuine savings policy.

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