First Home Buyers

Contact Us
First Name*
Last Name*
Email Address*
Phone*
Post Code*

Tips for First Home Buyers

The hardest thing for most first home buyers is saving a deposit. Well the good news is that you no longer need a deposit or genuine savings. Genuine No Deposit Home Loans are now available and have made life a lot easier for first home buyers and investors alike. Go to our No Deposit Home Loans page to find out more.

Suitable Loans for First Home Buyers

  • 106% loans: You can borrow all of the purchase price plus another 6% to cover fees. You can even keep the $7000 grant to do with as you please.
  • 100% loans: Borrow 100% of the purchase price. Depending on what state you're buying in, the FHOG can be used to cover most of the fees and mortgage insurance.
  • 97/3 loans: You need 3% genuine savings but your mortgage insurance will be much lower. In addition the mortgage insurance can be added on to the loan taking it up to almost 100%
  • 95/5 loans: If you have 5% deposit, none of it needs to be genuine savings. It could be a gift, inheritance etc. Mortgage insurance will be lower again and can be added to the loan taking it up to around 97%
  • 80/20 loans: Once you have 20% deposit no mortgage insurance is required at all.
  • Family Equity Loans: If you have a family member willing to put up their own property as security then Family Equity Loans are great. For example you parents own their own home. Your parents only need to give the lender a limited guarantee for 20% of your purchase price plus fees. They are only responsible for 20% of the debt and as your equity increases with time they can be released from their guarantee. In effect you are borrowing 100% but there is no mortgage insurance- a great deal!

Before you go shopping for your first home, you really should have your finance pre-approved. See The Power of Pre-Approvals to find out how pre approvals can save you thousands.

Real Estate agents can spot a first home buyer from a thousand paces. There are unscrupulous ones who will try to exploit your inexperience. The most common strategy they will use is to try to pressure you into making an offer by telling you: " You better be quick. I've got two other couples very interested in this property".

Don't fall in love with a property. Find at least four properties that you like and armed with your pre-approval, start making ridiculous offers on each of them. At least one of the sellers will be more desperate than the others. The secret to real estate is to buy right. Your pre-approval will help you do this.

For a FREE phone quote and detailed analysis of your own particular scenario fill in the contact form on this page!