Master first home buying with our comprehensive guide. Learn about grants, concessions, borrowing power, and use our free calculators for 2024-2025.
Buying your first home is one of life's biggest financial decisions. This guide walks you through the entire process, from understanding government grants to calculating your borrowing power and monthly repayments.
Our Mortgage Calculator helps you understand your borrowing power, monthly repayments, and total loan costs. Start planning your home purchase today.
Calculate My MortgageAustralia offers several programs to help first home buyers enter the property market:
Australia offers several financial incentives for first home buyers. Understanding these programs is crucial for maximizing your purchasing power and minimizing costs.
The First Home Guarantee allows eligible first home buyers to purchase a home with as little as a 5% deposit. The government guarantees up to 15% of the property value, potentially eliminating the need for Lenders Mortgage Insurance (LMI).
Each state and territory offers different FHOG amounts and eligibility criteria. These grants typically range from $10,000 to $20,000 and are designed to help first home buyers with their deposit requirements.
Most states offer significant stamp duty concessions for first home buyers, including full exemptions for properties under certain value thresholds. These concessions can save thousands of dollars in upfront costs.
Your borrowing power depends on several factors including your income, existing debts, living expenses, and the lender's assessment criteria. Most lenders use a debt-to-income ratio of around 6:1, though this can vary based on individual circumstances.
Traditional home loans typically require a 20% deposit, but first home buyers can access loans with smaller deposits through government schemes. With the First Home Guarantee, you may only need a 5% deposit, while other schemes might require 10-15%.
Our comprehensive mortgage calculator helps first home buyers estimate their borrowing capacity, calculate monthly repayments, and understand the total cost of their home loan including interest and fees.
Beyond the purchase price and deposit, first home buyers should budget for additional costs including stamp duty, legal fees, building inspections, loan application fees, and moving costs. These can add 3-5% to your total purchase cost.
Getting pre-approved for a home loan before house hunting gives you confidence in your budget and makes you a more attractive buyer to vendors. Pre-approval typically lasts 3-6 months and provides a clear indication of your borrowing capacity.
Avoid these common pitfalls: not accounting for all upfront costs, borrowing the maximum amount without considering future expenses, not researching different loan products, and failing to factor in interest rate changes over the loan term.
Start saving early, research government grants and concessions thoroughly, get pre-approved before house hunting, consider the total cost of ownership including rates and maintenance, and don't forget to factor in potential interest rate rises when budgeting.