First Home Buyer

Looking to rent? Buying your first home? Lifes Challenges Downsizing?
Retiring? Young Couples Running out of space? Looking to invest?
What's the first hurdle when buying your first home?
For most, it's working out how big a deposit you'll need and after that saving that home deposit.
  • Work out what you can afford to borrow and still live comfortably
  • Get advice from a financial planner, friend or relative who has bought property before. Arm yourself with as much advice as possible
  • Don't over commit when buying your first home. Many people will get approved for loans far above what they can afford to pay back. Don't fall into this trap. You'll need adequate reserves to cover in excess of just mortgage repayments
  • Start looking around once you have around 5 % of the purchase price and keep saving
You need to know:
  • How much you can afford to borrow
  • How large a home deposit you will need
  • What the other costs are that you will incur
  • How to make an offer
Speak with a friendly First National Real Estate agent for advice.
- A bank or mortgage broker can help you establish a realistic figure
- If you have below 20 % of the purchase price, you may need to pay Mortgage Insurance. This allows you to borrow a larger percentage of the purchase price but slows the rate at which you pay off your loan
Mortgage Insurance can be included either in your upfront costs or in your loan repayments so that it's spread out over the term of the loan
- Once you have decided that you are comfortable with the amount your Lender has approved for you, it's wise to get your lender's 'pre-approval' or a 'Deposit Bond'. Then you can bid confidently at an auction, or make an offer on a 'private' sale, knowing your lender won't say no
  • A 'Deposit Bond' acts as a substitute for cash and you can use the bond when exchanging contracts, including at auctions.
  • For a small fee (several hundred dollars normally), you and your lender agree a maximum amount that you can use as a deposit to buy and you don't need to use your cash. The Deposit Bond works like a guarantee. It's your lender's way of saying 'we'll pay this deposit at settlement, instead of now'.
  • It gives you the freedom to concentrate on finding the right property - and keeps your deposit savings earning interest, right up until the day of settlement.
  • Your Lender can arrange this as part of your pre-approval.
Visit First National Real Estate's website, enter your budget, and we'll let you know where we have properties that are perfect for you.
First National Real Estate's Property Market Outlook can give you the tips, trends and predictions, especially concerning whether you should buy now. First National Real Estate has over 400 offices around Australia & New Zealand. Visit our website for your FREE copy or click here to talk to one of our agents
Some of the most respected institutions and banks in Australia say no, and not without good reason. Check out First National's news Blog for more information