Your guide to the steps to buying your first home
Buying your first home is an exciting experience, but it’s important to be aware of all the issues involved. Here are some of the essential things you need to know as a first time home buyer.
What is the First Home Owners Grant and how much is it?
The First Home Owners grant (FHOG) is an Australian government initiative which enables first home buyers to save money when purchasing a new build home. The rules differ in different states and territories. For example, in areas of Victoria such as West Melbourne, if you are a first time home owner buying or building a brand new home worth $750,000 or less, you can receive a grant of $10,000. In some areas of regional Victoria, this increases to $20,000.
You need to speak to a home loan specialist to check your eligibility and how much you can receive.
How much can I borrow for my home loan?
The amount you can borrow depends entirely on your individual circumstances and income, so this is something you need to discuss with a finance professional. If you want an approximation, it’s worth organising pre-approval before you start looking for your first buyer home.
You also need to work out how much you can afford to repay per week. This depends on the total amount of your loan and will need to be worked out with your lender.
What are the other costs involved for a first time buyer?
When you’re buying your first house, you need to be aware of a number of other costs which may apply to your purchase. These can include:
- Stamp duty (in Melbourne and more widely in Victoria, you can get concessions on this if your new home costs $600,000 or less)
- Conveyancing and legal fees
- Lenders Mortgage Insurance (you can avoid this if you have a deposit of 20 per cent or more of the total property price)
- Buildings and contents insurance
You may also need to budget for any extra inclusions you want in your home.
Do you have a range for first time property buyers?
We also recognise that not every first home purchase is actually going to be a home for the buyer. Our properties are ideal for first investment property buyers, as they are modern and fitted with all the latest conveniences that tenants expect.