First Home Buyer
First Home Buyer
Buying your first home? Let Lifestyle Loans Guide You
Embarking on the journey of buying your first home is thrilling, and we’re here to support you at every stage. Our Team is committed to assisting first home buyers, from finding the best loan options to navigating government incentives and grants. Let us help you make your dream of homeownership come true!
Frequently Asked Questions
The deposit you need to buy your first home can vary depending on several factors, including the type of loan and the lender’s requirements. Here are some general guidelines:
- Minimum Deposit: Typically, you need at least 5% of the property’s sale price. For example, if you’re buying a home for $500,000, you would need a minimum deposit of $25,000.
- Ideal Deposit: Aiming for a 20% deposit is often recommended as it can help you avoid paying Lenders Mortgage Insurance (LMI). For a $500,000 home, this would be $100,000.
- First Home Guarantee Scheme: In some cases, you might be eligible for schemes that allow for a lower deposit, such as 5%.
Need some help working out what deposit to save and what government incentives you have access to? Get in touch, our expert brokers are here to guide you through.
The amount you can borrow depends on your income, expenses, credit score, and the lender’s criteria. Generally, lenders will offer a loan amount based on a multiple of your annual income. Fill out this form to understand how much you can borrow today.
There are several government incentives designed to make purchasing a home more affordable:
- First Home Owner Grant (FHOG): This grant provides up to $10,000 for eligible first-time buyers to help purchase or build a new home.
- Home Guarantee Scheme: This includes the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee. These schemes allow eligible buyers to purchase a home with a deposit as low as 2-5%, without paying Lenders Mortgage Insurance (LMI).
- Stamp Duty Concessions: Many States offer stamp duty concessions or exemptions for first-time buyers. For example, in Victoria, first-time buyers can get a full stamp duty exemption on homes valued up to $600,000. Try our calculator to estimate your stamp duty costs.
Understanding these options can significantly ease the financial burden and help you get into your new home sooner. Contact us today to discover which incentives you may qualify for as a first home buyer.
Pre-approval is a process in which a lender assesses your financial situation to determine the amount they are willing to lend to you for a mortgage. This process includes reviewing your credit score, income, debt-to-income ratio, and other financial details. With a pre-approval, you’ll have a clear understanding of how much you can borrow and the price range of homes you can afford. Talk to one of our Lending Specialists today to begin your pre-approval process.
If you’ve been thinking about helping your child buy their first home, you’re not alone. This might be by helping them with some money for their deposit or ongoing repayments or by acting as a guarantor.
- Gift A Deposit: Parents can provide a financial gift to help cover the deposit, making it easier for their child to purchase a property.
- Guarantor Home Loan: A guarantor, usually a close family member, provides additional security for a home loan using their property as a guarantee. They don’t need to contribute cash or make repayments on the loan.
- Risks for Guarantors: Guarantors are responsible if repayments aren’t made, which could mean covering the loan or even selling their own property. The guarantee can also limit their options if they want to sell or refinance.