First Home Buyers Gold Coast

As a first home buyer on the Gold Coast, you’ve probably got a lot of questions. You’re likely a little unsure of your options. And you’re probably looking for some additional support. In fact, according to a recent survey by CoreData, a massive 71% of first home buyers are looking for more support. The same study found that almost half of first home buyers struggle with understanding how the whole home loan process works, 37% aren’t sure about what government grants they may be eligible for and 46% are uncertain how to get the best mortgage deal.

But don’t worry – Professional Lending Solutions is here to help first home owners on the Gold Coast. We’ve put together a comprehensive guide for first home owners, including answers to frequently asked questions and helpful tips for first home buyers on the Gold Coast. We’ve also provided an overview of what government grants are available for those applying for their first home mortgage on the Gold Coast.

Professional Advice for First Home Buyers Gold Coast

Buying a home for the first time is a definite upgrade but also a huge financial commitment. As such, you would want to have the best first home buyer mortgage broker on board that will help you make sure you are making all the right decisions around purchasing your first home. 

In this video, our CEO and Founding Director Phil Verheijen gives a bite-size, 7-minute version of ‘first home buyer what to know’ information.

What is a first home buyer? Who do the banks and lenders consider a first home buyer?

A first time home buyer in Australia generally refers to an individual who purchases a residential for the very first time. First home buyers often qualify for special grants, concessions, and other financial assistance schemes sponsored by state and federal governments. Many financial institutions also offer incentives and special loans to first home buyers.

Tips to get the best home loan for first home buyer

Here is a list of our first home buyer tips:

1. Know the features of your home loan

Home loans can have many different features that will save you money and give you flexibility. Below are home loan features that you can ask a first home buyers mortgage broker about: 

  • Offset account: An offset account is a bank account attached to your mortgage that works like a standard bank account. What makes it different is that any money in there is “offset” against the home loan principal. When you hold money in an offset account for a period of time, you reduce the amount of interest charged on your mortgage. You can also make a deposit or withdrawal from an offset account just like you would with your everyday bank account.
  • Extra repayments: If an offset account is not an option for you, you can opt to make extra repayments (when possible) to pay down your loan faster. Choose a home loan that allows you to make fee-free repayments.
  • Redraw facility: Extra repayments help you build up money “paid in advance” of your owing repayments. With a redraw facility, you can access the extra repayments you made and draw funds from it. You also reduce the interest owing on your home loan.
  • Interest only: Some home loans allow you to pay the interest amount only for a period of up to seven years. This brings down the ongoing monthly repayment amount during this period, but once it ends you will have to pay the principal balance and all interest owing.
  • Split rate option: Instead of choosing to fix your interest rate on your entire loan, or have only a variable rate, you can have both! This feature lets you choose a portion of your home loan to fix the interest rate while the rest of the loan will remain at a variable rate. This is a good feature to have if you want the security of a known interest rate but also want to access home loan features like an offset account or redraw facility.
  • Altered repayment schedule: Home loans with this feature lets you make your repayments on a fortnightly basis instead of monthly. Making fortnightly repayments allows you to pay off mortgage faster.
  • Home loan portability: This feature is good to have if you decide to move down the line as it allows you to transfer the security of the loan, being your first home, to the next home whilst keeping the same mortgage. 
  • Home loan top up: If you plan to make major expenditures in the future like buying a car or renovating your home, a home loan top up feature will come handy. You can ask your lender to borrow more money once you’ve built up a good amount of equity in your home.
  • Line of credit facility: This feature is determined by the amount of your property equity. It works like an overdraft account and a home loan top up, and is usually capped at 80% of the property value.

2. Talk to an experienced professional that you can trust

First home buyers often find themselves inundated with well-meaning advice (much of it irrelevant or unhelpful). But by talking with a mortgage broker, a first home buyer is tapping into a wealth of industry experience and gaining access to home loan deals that aren’t available on the retail market. Dealing with a broker will also save you time, minimise stress and protect your credit score (which will be negatively impacted by multiple rejections). Additionally, when you deal with a first home mortgage broker you’re protected by ‘Best Interests Duty’, legislation that ensures a broker is always working in your best interests.

3. Don’t feel discouraged if you haven’t saved a 20% deposit

A 20% deposit is preferred by many lenders, but that doesn’t mean you’re locked out of the housing market if you haven’t yet saved up that much money. Get in contact with a first home mortgage broker to discuss what other options may be available to you. This could include using with a guarantor, applying for the First Home Loan Deposit Scheme or opting to buy a property sooner with Lender’s Mortgage Insurance (LMI).

4. Take action to improve your credit rating

A lot of first home buyers aren’t sure what their current credit rating looks like – so the first thing to do is find out. You can apply for a free copy of your credit report through a range of credit reporting agencies. The higher your credit score, the better your application will look to lenders. Once you’ve made sure there are no errors on your credit report (which can occasionally happen) there are steps you can take to improve your credit rating. These include paying down personal debt, paying off your credit card in full each month and making sure all of your bills are paid on time.

5. Do your own research

It pays to know the language used in the property scene so you don’t get lost with the jargon being casually thrown around when discussing finance. In a recent survey, 84% of Australian home buyers admit to not knowing enough about home loans — even current homeowners may have questions about the home loan jargon and different lender terminology that gets used. When overwhelmed, ask a first home buyers mortgage broker to show you the ropes.

6. Ask your parents to help you secure your first home loan

If you’ve been diligently saving for years but still feel like you’re a long way off having that 20% deposit for your first home loan, you can look to family to help you qualify. Your parents can get you your first home loan by:

  • Acting as your guarantor
  • Giving you a financial gift
  • Offering you a cash loan
  • Letting you live with them rent-free to increase your savings
  • Buy your house with you and become co-owners

7. Display job stability

Lenders will be scrutinising your income and will require sound evidence that your income will be stable. While this isn’t a big issue for those employed in essential services (e.g., Coles permanent employees, pharmacists, IT professionals in a government department, etc), self-employed borrowers and those working in less coronavirus-proof industries may find it more difficult to prove their income is stable. Ask your mortgage broker what you need to do to demonstrate to lenders that you have a stable source of income.

8. Make sure you allow for all associated costs

In addition to your initial deposit, there is a range of other fees that you’ll need to budget for when buying your first home. These may include a loan application fee (a one-off fee that is payable when your loan commences), Lender’s Mortgage Insurance (if your deposit is less than 20%), Government fees (such as Stamp Duty), conveyancer charges (for handling the transfer of sale), pre-purchase inspection costs (such as building or pest inspections) and moving expenses. If you want more information on the costs associated with buying your first home, then get in contact with the team at Professional Lending Solutions. We’d be happy to provide you with more detailed information on how much you should be budgeting for associated purchase costs.

What Government Assistance is available for a First Time Home Buyer Gold Coast?

The Federal and Queensland Governments are currently offering a range of incentives and discounts for first-time home buyers. These include:

  • First Home Loan Deposit Scheme: As was mentioned earlier, the First Home Loan Deposit Scheme allows eligible participants to obtain a home loan with a 5% deposit, without having to pay for Lender’s Mortgage Insurance. This scheme, which launched in early 2020, accepts the first 10,000 applicants of each financial year who meet the specified criteria. Find out the new price caps for the First Home Loan Deposit Scheme 2021
  • Queensland First Home Concession: The First Home Concession reduces the amount of stamp duty (also known as Transfer Duty) that first home buyers are required to pay. This concession is available to first home buyers who purchase a property for less than $550,000 and who meet the associated eligibility requirements.

Queensland First Home Owners’ Grant: The First Home Owners Grant Gold Coast is available to all Queensland first home buyers who opt to purchase or build a brand-new home. This is a $15,000 cash grant which can be used to pay for associated purchase costs or as part of your initial deposit.

Why Should Gold Coast First Home Buyers Choose Professional Lending Solutions?

The team of mortgage brokers at Professional Lending Solutions offers first home buyers a combination of industry experience, local knowledge of the property market and a commitment to always acting in the best interests of the buyer.

We’ve recently been listed as Finalists in the Better Business Awards 2021 in the categories of ‘Best Finance Broker’, ‘Best Regional Broker’, ‘Best Loan Administrator’ and ‘Best Regional Office’. These awards acknowledge that “to be an outstanding broker, it’s not just about writing volume, it’s about customer service and dedication to the clients’ best interests.” This is a statement that the team of brokers at Professional Lending Solutions wholeheartedly agree with and something we always try to demonstrate in our dealings with customers.

FAQ from First Home Buyers Gold Coast

The average house deposit is generally considered to be between 5% and 20% of the total property purchase price. The Gold Coast has a current median house price of $630,000, which would require an initial deposit of between $31,500 (5%) and $126,000 (20%). However, this amount will obviously fluctuate depending on where you’re looking to buy. For example, in Parkwood, the average cost of a 3-bedroom home is $555,000 (which would require a deposit of between $27,750 and $111,000), while in Nerrang a house of a similar size will have a median price of $477,000 (deposit of $23,850-$95,400). In Gilston the average 4-bedroom home is $658,000 (deposit of $32,900-$131,600), while in Elanora it’s $780,000 ($39,000-$156,000).

It’s also important to keep in mind that if you’re opting for a 5% deposit then you may find that there are fewer lenders who will be willing to offer you a home loan. Additionally, your interest rate may be slightly higher, since the lender is taking on a greater level of risk. A deposit that is less than 20% of the purchase price will also incur Lender’s Mortgage Insurance (LMI).

Lender’s Mortgage Insurance is a type of insurance policy that is designed to protect the lender in case you default on your home loan. Most lenders will stipulate the need for Lender’s Mortgage Insurance if your deposit is less than 20%. The cost of this policy can add thousands of dollars to the total of your mortgage, so it’s understandable that many first home buyers are looking for ways to avoid it. One possible method is to have someone act as a guarantor on your home loan. Eligible applicants can also apply for the First Home Loan Deposit Scheme. This scheme allows participants to apply for a home loan with a 5% deposit because the National Housing Finance and Investment Corporation (NHFIC) essentially acts as a guarantor on the remaining 15%.

A guarantor is someone (usually a close relative) who is willing to use the equity in their own home as security against your home loan. With a guarantor, a first home buyer can borrow up to 95% of the property purchase price without having to pay for Lender’s Mortgage Insurance. For this reason, a guarantor can be a great option for first home buyers who haven’t yet saved a 20% deposit and who aren’t eligible for the First Home Loan Deposit Scheme.

The amount you can afford to borrow will vary depending on your current assets, your employment status, how much you typically earn, what your credit record looks like and how much personal debt you currently have. To get an estimate of how much you could afford to borrow, try the Professional Lending Solutions free online ‘Borrowing Power Calculator’, or make an appointment to speak with one of our brokers for a more detailed assessment.

A fixed interest rate refers to a home loan where the amount of interest you are charged doesn’t change, whereas a variable interest rate will move up or down in response to adjustments in the official cash rate. There are pros and cons to choosing either a fixed interest rate or a variable interest rate.


For example, with a variable interest rate, you will often have more flexibility when it comes to making additional repayments or accessing redraw. But with a variable interest rate, there is no guarantee that your minimum monthly mortgage repayments will stay the same, which can be a deterrent for those who operate on a fixed budget.

In contrast, a fixed rate allows you to lock in a set figure for a predetermined amount of time (usually between 1 and 5 years). Because interest rates are currently at record lows, a lot of first-time home buyers on the Gold Coast are opting for a fixed rate. To find out more about whether you should opt for a fixed or variable interest rate, talk to an experienced Gold Coast mortgage broker.

If you’re one of the 47% of first home buyers who is unsure how to find the best deal, then there’s no need to panic – that’s what mortgage brokers are for. At Professional Lending Solutions, our brokers always start by asking questions: about you, your current circumstances and your future financial goals. Why do we ask so many questions? Because this will help us to determine which mortgage lenders have the best home loan deals to suit your needs. There is no ‘best home loan deal’ that will be right for every first-time home buyer. That’s why we compare hundreds of home loan products from a wide range of lenders – we’re intent on finding the best mortgage option for your specific circumstances.

You can go directly to a bank or lender to shop for first home mortgage products; however, they are not legally bound to work in your best interest and may wind up offering you a home loan that doesn’t necessarily suit your financial circumstances. Mortgage brokers, on the other hand, have a legal obligation to act in the best interest of consumers. You can therefore rest assured that working with a mortgage broker can get you the best home loan for your needs.

To qualify as a first time home buyer, you must:

  • Be over the age of 18
  • Be a citizen or permanent resident of Australia
  • Be married or in a de facto relationship with an Australian citizen or permanent resident
  • Have excellent credit history
  • Have stable income and employment status
  • Have at leat 20% deposit

Recent Testimonials

Nathan Marchant
Nathan Marchant
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Phil and the team have been fantastic from the first time we used their services buying our first home 5 years ago to now helping us turn a dream in to a reality by refinancing to renovate. We couldn’t be happier with the service we have had over the years with multiple loans and would recommend anyone in need of financial services to get in touch with Phil and his team. Thanks again and time to start turning this house into a home for years to come.
Kerri Hall
Kerri Hall
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My husband and I are first home buyers and we had lost hope when we had bad advice and direction from another broker. We reached out to Phil and he made it all possible. We are now about to start building our first home. This would not have been possible if it was not for him. He made this journey stress free. We would highly recommend him to anyone including first home buyers.

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