First Steps To Owning Your Home

First-home buyers should examine their finances closely. Understanding your income, savings and expenses will help you determine what you can afford.

Here are key things to consider:

• Savings and deposit — For first-time homeowners, most lenders may require a deposit worth at least 5–10% of the property price.
• Credit score — A strong credit score, generally considered to be between 661 and 734, improves your chances of loan approval and securing better interest rates. Keep in mind that requirements can vary between lenders and loan types, especially for low-deposit loans, which may need a higher score.
• Ongoing costs — Factor in loan repayments, council rates, insurance and maintenance costs.

If you're unsure where to start, a property investment advisor can help you assess your financial position and explore your best options.

Define what you’re looking for in a home. Consider:

• Location — Check the proximity to work, schools, public transport, shopping centres and other essential amenities.
• Property type — Decide whether you prefer a house, townhouse or apartment and whether you want a newly built property or an established home with potential for renovations.
• Lifestyle factors — Think about your long-term plans, including future family needs, work-from-home requirements and whether the property suits your desired lifestyle and future living arrangements.

First-home buyers in Australia may be eligible for several grants and concessions to reduce costs. These include:

• First Home Owner Grant (FHOG) — This is a government initiative that provides a one-off payment to eligible first-home buyers purchasing or building a new home to help reduce upfront costs.

• Stamp duty exemptions — Some states offer discounts or exemptions to first-home buyers.

• First Home Super Saver Scheme (FHSSS) — This scheme allows you to use superannuation contributions to boost your deposit.

• First Home Guarantee (FHBG)— This is a government program that helps eligible first-home buyers purchase a home with as little as a 5% deposit, with the government guaranteeing up to 15% of the loan.

Check your state government’s website for the latest eligibility criteria and application details.

Getting your home loan pre-approved will give you a clear understanding of how much you can borrow. Lenders will review your income, expenses, credit history and deposit to determine your borrowing capacity.

To apply, you’ll typically need proof of income or employment, such as payslips or tax returns, along with proof of assets, bank statements detailing your existing debts and identification documents to confirm your identity.

When searching for properties, you can work with a real estate agent for access to off-market listings and expert guidance, or you can search independently using property websites, attending open houses and exploring different neighbourhoods.

When inspecting properties, take note of recent renovations, potential repairs and the overall condition of the home.

When you find the right home, the next step is to make an offer. Depending on the property type, this could be a private sale, an auction or a negotiated purchase.

Engaging a conveyancer or solicitor is essential at this stage, as they will review contracts and handle legal paperwork.

Once your offer is accepted, you’ll need to finalise your mortgage by submitting your loan application for formal approval. The settlement process typically takes between 30 and 90 days, during which time final payments and legal transfers are completed.

As settlement day approaches, start preparing for a smooth transition to your new home. Ensure that essential services like electricity, gas, water and internet are connected before you move in to avoid any disruptions. Book removalists ahead of time to secure your preferred moving date.