Buying your first home can be daunting and sometimes it seems as though it may never happen.
What we have found is that consistency with savings pays off and although you may want to fly the coop now, you may need to get your ducks in a row before this dream becomes a reality.
The best thing you can do is to:
If you can’t afford it, then don’t buy it. You see the lenders are looking for someone who can prioritise a mortgage and live within their means.
Here are some options available for first home buyers:
If you have genuinely saved 5% deposit + costs, you may be eligible for the FHLDS. Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit of as little as 5 per cent (lenders criteria apply).
One way to potentially get into your own home sooner is by having a family member act as a guarantor. Many lenders allow parents or someone who is close to you, to use the equity in their property as security for your home in lieu of you saving the full deposit required. This person is known as a guarantor.
There are several things to factor in when calculating what the transfer duty will be on the property you buy and what exemptions will be for you, in your specific state. For FHBs though, as part of the First Home Buyer Assistance scheme, you may be exempt from transfer duty on new homes, or eligible for discount.
State governments’ initiative to help first home owners achieve their first home dreams sooner. It does require you to be buying or building your new home and depending on your location, there will most likely be a cap on the value.
Another option for First Home Buyers and previous homeowners is:
This is for eligible single parents with at least one dependent child in purchasing a family home, regardless of whether that single parent is a first home buyer or a previous homeowner with as little as 2%.