Thinking about buying your first home? Important things you need to know
Finding your dream home starts with understanding your financial landscape. At Buyvest, we help first home buyers gain clarity around budgeting, deposit options, home loan choices, and the type of property that fits their lifestyle. Our expert team guides you through every step - from planning and securing loan approval to researching properties, making an offer, and closing the deal.
Understanding key concepts
As a first home buyer, it is important to understand the key financial concepts that impact your home buying journey.
Stamp Duty Concession
This is a state-imposed tax on property purchases. The cost varies depending on the state, property price, and type of property. All states offer Stamp Duty Concessions under the First Home Buyers Assistance Scheme for first home buyers seeking to purchase an owner-occupied property.
Home Guarantee Scheme (HGS)
Gives buyers the opportunity to buy a home with a much lower deposit and the possibility to avoid Lenders Mortgage Insurance. You can purchase with just a 5% deposit, and single parents under the Family Home Guarantee, the deposit can be as low as 2%.
Shared Equity Scheme - also known as Help to Buy Scheme (HTB)
The shared equity scheme helps eligible first-time homebuyers purchase a property with a smaller deposit. The government contributes up to 40% for new homes and 30% for existing homes, allowing buyers to enter the market with just a 2% deposit.
First Home Owner Grant (FHOG)
This governmental program offers a single payment aimed at assisting first-time homebuyers purchasing or constructing a brand-new home. Eligibility varies by state, so it is important to check specific criteria in your state.
Loan to Value Ratio (LVR)
How much of a property's value you are borrowing from a bank. To figure out your LVR, divide your loan amount by the property’s value, then multiply by 100 to turn it into a percentage. Aim for an LVR of 80% to avoid Lender’s Mortgage Insurance.
Formula:
LVR = (Loan Amount ÷ Property Value) x 100
Lenders Mortgage Insurance (LMI)
This insurance protects the lender if you can't make repayments and is generally required if you borrow more than 80% of the property's value.
Understanding these concepts will allow you to maximise your benefits and minimise costs.
Buyvest understands these changes and we can guide first home buyers through each step of the process on your homeownership journey.
Contact us today to start your journey and get home loan pre-approval
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Buying your first home?
Purchase your first home with confidence.
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Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd ABN 91 684 841 496, Australia Credit Licence No. 567392 and is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
All information on this website is subject to change without notice.
