Guidelines for First Time Buyers

The very first step when entering your first home buying journey should be to speak to your local mortgage broker. They will assist you with all the points listed below and in most cases come at no cost to you — brokers are paid by the lenders, not the borrower.

Where to Go for Guidance

• Government resources: The Australian Government's MoneySmart website offers a comprehensive guide for homebuyers, including information on saving for a home, understanding costs, and finding the right mortgage.
• State and territory resources: Each state and territory has its own set of rules and resources for homebuyers — for example, NSW Fair Trading and Consumer Affairs Victoria both offer useful buyer guides.
• Financial institutions: Banks and lenders often provide detailed guides for first-time buyers explaining the steps involved in obtaining a mortgage.
• Real estate websites: Websites like realestate.com.au and domain.com.au offer extensive advice sections with articles and guides on the home buying process.
• Professional advice: Consider engaging a conveyancer or solicitor who specialises in property law to guide you through the legal aspects of the purchase.

Tips for First-Time Home Buyers

• Start saving early. The larger your deposit, the better your loan terms could be. Aim to save at least 20% of the property's value to avoid paying Lenders Mortgage Insurance (LMI).
• Understand your budget. Use online calculators to get an idea of how much you can borrow and what you can comfortably afford to repay before you start looking at properties.
• Check for first home buyer incentives. Both the Federal Government and state governments offer grants, schemes, and concessions for first-time buyers — such as the First Home Owner Grant (FHOG) and stamp duty concessions. These vary by state and are worth investigating early.
• Get pre-approval. Pre-approval gives you a clear idea of your budget and shows sellers you're serious about buying.
• Research the market. Attend open homes and auctions to get a sense of property values in your desired area. Understand whether it's a buyer's or seller's market.
• Consider all costs. Remember to account for stamp duty, conveyancing fees, building inspections, moving costs, and home insurance — not just the deposit.
• Be thorough with inspections. Always have a professional building and pest inspection done before finalising a purchase to avoid costly surprises.
• Think long-term. Consider not just your current needs but how they might change over time — this affects the type of property and location you choose.
• Negotiate. Don't be afraid to negotiate on price, terms, and conditions. There's often more room to move than buyers assume, especially if you've done your research.
• Stay level-headed. It's easy to get emotionally attached to a property. Make decisions based on your budget and needs rather than emotion.
• Plan for the future. Consider the potential for property value growth in the area and any planned infrastructure that may affect this.
• Engage a conveyancer early. Bring a conveyancer or solicitor into the process early to help you understand the contract and your legal obligations.