Need a Mortgage Broker
to help buy your first home?

Our team of experienced Mortgage Brokers are here to guide you through the process of buying your first home. We understand that purchasing your first home can be overwhelming, which is why we’re dedicated to helping you every step of the way.

Our experts are well-versed in the First Home Buyers Grant (FHOG) scheme, a national program designed to assist first home buyers in achieving their homeownership dreams. While the scheme is funded by the Federal Government, each state and territory has its own guidelines for eligibility and grant amounts.

With our in-depth knowledge of the FHOG program, we can provide you with tailored advice and support to help you access the application process and maximise your grant entitlements.

Get in touch with our First Choice Mortgage Brokers to discuss your First Home opportunities and for any assistance in accessing the FHOG application process.

Buying First Home FAQs

How Do I Know If I am Eligible for the First Home Owners Grant?

As a basic rule, you are eligible for the first home owner grant if you are an Australian or New Zealand citizen or permanent resident. Buying or building your first home, intending to occupy it as your principal place of residence within 12 months of the settlement and live in it continuously for at least 6 months.

Please note that if you are buying the property in conjunction with other people, they must also meet the first home buyer’s criteria for the grant to be eligible.

Request a free consultation with one of our First Choice home loan brokers now. Our knowledgeable team will work with you to gain a thorough understanding of your financial circumstances and build a home loan strategy that is right for you.

How Do I Apply for the First Home Owners Grant?

Our team at First Choice Mortgage Brokers will complete the application on your behalf. Usually, the first home owners grant application is submitted whilst the loan is proceeding so that the funds are available for settlement of your home loan.

In some cases, the grant can be submitted post-settlement and the funds deposited into your bank account. We will assist you with the application and submit the forms on your behalf. This is part of our mortgage brokers ongoing commitment to assisting you in purchasing your first home.

How Much Can I Borrow?

In Australia, the amount of money you can borrow for a home loan depends on several factors, including your income, expenses, credit history, employment status, and the lender’s lending criteria.

To determine how much money you can borrow, lenders in Australia typically use a calculation called the “borrowing power” or “serviceability” assessment. This assessment takes into account your income and expenses, as well as any existing debts or financial commitments you have, to determine the maximum amount you can afford to borrow and repay.

As a general rule, lenders in Australia will usually lend up to 80% of the value of the property, meaning you will need to have a deposit of at least 20% of the purchase price. However, some lenders may offer higher loan-to-value ratios (LVRs).

It’s important to keep in mind that just because you can borrow a certain amount doesn’t mean you should. You should only borrow what you can comfortably afford to repay, taking into account your income, expenses, and any potential changes to your financial circumstances in the future.

Borrowing capacity will also vary from lender to lender. If you require more information, First Choice is one of Australia’s best mortgage brokers so get in contact today, we will give you a complete individual assessment when we discuss your options.

How Much Will I Need to Save for a Deposit?

In Australia, the amount of money you will need to save for a deposit on a property depends on several factors, including the purchase price of the property, the type of loan you are seeking, and the lender’s requirements.

Typically, lenders in Australia require a minimum deposit of 5% to 7% if you plan to live in the property, in some cases a deposit of up to 20% of the purchase price of the property is required. It’s important to keep in mind that the larger your deposit, the lower your ongoing mortgage repayments will be, as you will be borrowing less money and paying less interest over the life of the loan.

It’s a good idea to speak with a mortgage broker to determine exactly how much money you will need to save for a deposit, as requirements can vary between lenders and loan products. Get in touch with the friendly team at First Choice Mortgage Brokers today to find out more!

How Much Money Will I Need to Set Aside for Stamp Duty?

In Australia, the amount of money you will need to set aside for stamp duty depends on several factors, including the state or territory where the property is located, the purchase price of the property, and whether you are a first-time homebuyer.

Each state and territory has its own stamp duty rates and thresholds, so it’s important to check the relevant government website or speak to a conveyancer or solicitor to determine the exact amount you will need to pay. First-time homebuyers in NSW may be eligible for exemptions or concessions on stamp duty, depending on the purchase price of the property.

It’s important to keep in mind that stamp duty is a significant expense that should be factored into your overall budget when purchasing a property in Australia. You can use online stamp duty calculators or speak to our team of mortgage brokers to get a more accurate estimate of how much stamp duty you will need to pay.

What Other Expenses Will I Need to Pay Besides Mortgage & Stamp Duties?

You may have to consider additional funds for the following:

  • Building and pest reports
  • Valuation fees
  • Lenders mortgage insurance (LMI)
  • Solicitors’ fees
  • Insurances
  • Utility connection fees – phone/gas/electricity
  • Council and water rates
  • Removalist costs

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) premiums are payable by the borrower when the amount borrowed is above a certain percentage of the lender’s valuation of the property.

The majority of lenders will allow you to include the LMI premium to your home loan amount, and others may require you to pay it upfront. It’s important to note that the LMI does not protect you in the event that you are not able to make your mortgage repayments; LMI protects the lender from any losses resulting from late or unpaid loan repayments.

Contact First Choice Mortgage Brokers to find out more about lenders mortgage insurance.

How Do I Choose Which Home is Best for Me?

Choosing a home that is best for you involves several important considerations. Here are some factors to keep in mind as you navigate the home-buying process:

  1. Budget: Determine how much you can afford to spend on a home before considering a home loan. This will help you narrow down your options and avoid falling in love with a property that is outside of your price range.
  2. Location: Think about where you want to live and what amenities are important to you. Consider factors such as commute time, school districts, access to public transportation, and proximity to shops and restaurants.
  3. Size and layout: Determine how much space you need, both in terms of square footage and the number of bedrooms and bathrooms. Consider your lifestyle and future plans, such as whether you plan to have children or work from home.
  4. Condition and age of the property: Consider whether you are looking for a move-in ready home or if you are willing to invest time and money into fixing up an older property.
  5. Resale value: Even if you don’t plan to sell the home anytime soon, it’s important to consider the potential resale value of the property. Look at recent sales in the area and consider factors that may impact the property’s value over time, such as nearby development or zoning changes.

By carefully considering these factors, you can find a home that meets your needs and fits your budget, allowing you to enjoy your new home for years to come.

What are the Steps in the Home Loan Approval Process?

Please find the following basic guide for the home loan process – please note that the stages might vary slightly between different home loan lenders:

Step 1: Speak with a First Choice Mortgage Broker who will consider your financial situation and provide you with a home loan that suits your individual needs.

Step 2: Our home loan consultant will collect your supporting documents and take your application for the home loan.

Step 3: Your home loan will be submitted to the lender we agree on for their consideration.

Step 4: If the lender requires no additional information, the loan will be pre-approved, and a valuation will be ordered on your new purchase property.

Step 5: Valuation returns, and the lender accepts the property as security, your loan is submitted for formal approval.

Step 6: Your loan is formally approved! We provide you with an approval letter so that you can exchange on your new property. We also assist you with your first home buyers grant and submit this to the lender on your behalf.

Step 7: Mortgage contracts are sent to you in the mail – you sign them and send them back to the lender.

Step 8: Your documents are checked, the lender books in a settlement date with your solicitor and your loan settles.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

Contact us for a Free Assessment