6 Things You Need To Know As A First Home Buyer
Thursday, September 29th, 2022

6 Things You Need To Know As A First Home Buyer

Buying a house for the first time?

Becoming a first home buyer is a major step towards the life you dream of having. It is exciting, yes. But it is also daunting and can easily progress into a huge source of distress, especially when you don’t have all the essential information around what to know as a first time home buyer to make informed decisions. 

If you’re looking at buying your first home, you might want to consider these six home buyer tips before you sign anything.

What is a first home buyer?

A first home buyer is someone who buys their first property as their own home. They are individuals who have not previously owned or been purchasing a home.

6 tips for first time home buyer

1. Set your personal criteria for buying a home

First on our buying first home tip list: make a checklist of all the things that your house must have or be so you have a clear sense of what you are looking for. For example:

  • Is the neighbourhood friendly and safe?
  • Does it have access to public transport, services, and shops?
  • Is it close to work, family, schools, friends, hospital, etc?
  • Are there any plans to develop the area?
  • Is it within your budget?
  • Can your family live comfortably in it?
  • Are you looking for a house, unit, townhouse, studio, etc?
  • What is your style preference?
  • Do you need a parking space?

2. Know more about first home buyer grants

The government has set up schemes to help Australians get their homes fast. You can take advantage of one first home buyer grant QLD, or more depending on your eligibility. 

Here are a short first home buyer scheme list you can inquire about with a local home loan professional:

  • First Home Buyers Grant (FHOG) 
  • New Home Guarantee
  • First Home Super Saver Scheme
  • First Home Loan Deposit Scheme
  • HomeBuilder Grant

You may also want to avail of first home buyer loan concessions, e.g., the QLD first home buyer stamp duty exemption. Under this concession, a first home buyer buying a house can save up to $8,750 in buying costs for houses valued at under $550,000 or blocks of land valued at under $400,000.

3. Use your super

A question we often get asked is “can I withdraw my super to buy a house?” and the answer is always yes — via the First Home Super Saver Scheme (FHSSS). 

Under this first home buyer scheme, eligible Australians can make added contributions to their superannuation fund (totaling $15,000 pa) which can then be withdrawn (capped at $50,000) and used as a deposit to buy a home. Reach out to us to know more about FHSSS.

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4. Pay off debts to work out your borrowing power

How to save up for a house and increase your borrowing capacity as a first home buyer? 

There are many ways. First, pay off your debts (e.g., credit cards, bills, buy now pay later loans) to avoid having multiple debts to pay off at a given time, have a margin of safety, and strengthen your credit. 

Having a good credit score translates to being a “strong borrower” and makes you instantly eligible for many home loan products from various lenders. 

5. Determine how much you can actually afford

There are tons of costs associated with a first home buyer loan other than your initial deposit, so make sure you have a clear grasp on how much you can borrow and afford. 

Here’s an overview of these upfront and ongoing home costs: 

  • Purchase price
  • Loan application fee
  • Lender’s mortgage insurance 
  • Government fees
  • Legal and conveyancing fees
  • Building, pest and/or stata inspections
  • Moving costs 
  • Monthly repayments
  • Interest charges
  • Council rates
  • Utility costs
  • Building insurance
  • Strata fees

We also recommend that you get a pre-approval to establish a realistic budget and avoid wasting time on houses that are beyond your budget. 

6. Talk to a mortgage broker 

A DIY deep dive into the mortgage and property market might cause you to get overwhelmed with the wealth of information, lose precious time, and misunderstand important details.

Read: Benefits of Using a Mortgage Broker As A First Home Buyer

Going directly to a bank, on the other hand, can also severely limit your choices and miss out on better home loan products that really suit your needs. 

With a mortgage broker on your side who is legally bound to act in your best interest, they can answer questions like how to apply for a home loan first time buyer among others, and help you make sense of the whole home buying process.

More Queensland first home buyer tips

Our knowledgeable and trusted mortgage brokers at Professional Lending Solutions will be happy to assist you in the following:

  • Fully understanding your financial situation
  • Doing the necessary research and comparisons
  • Getting access to a wide range of products
  • Saving time and reducing stress
  • Protecting your credit score
  • Getting the right result

If you’re ready to buy your first home, get in touch and we’ll help make it happen for you.

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