Buying your first home is both exciting and challenging. Navigating the complexities of loans, deposits, and government grants can feel overwhelming. At Mantra Mortgage, we simplify this process, offering personalised guidance to help you secure your dream home faster. In this guide, we break down every essential step, from saving for a deposit to understanding loan options.
Why Buying Your First Home is a Major Milestone
Homeownership represents financial stability and a major life milestone. However, with rising property prices and various financial requirements, first-time buyers often face significant hurdles. Understanding your options is critical to making informed decisions.
Step 1: Assess Your Financial Readiness
Before diving into homeownership, evaluate your financial situation. Calculate your borrowing capacity, assess your monthly income, and review current debts. Use mortgage calculators to determine how much you can borrow and what repayments will look like.
How Much Can You Borrow?
Lenders usually offer home loans based on your ability to meet monthly repayments. Consider factors like your credit score, current debts, and income to gauge how much you can realistically afford. Many first-time buyers underestimate ongoing costs such as maintenance, council rates, and insurance.
Step 2: Saving for a Deposit
One of the biggest challenges first-time buyers face is saving enough for a deposit. While the general rule is to save 20% of the home’s purchase price, various low-deposit options exist.
Low-Deposit Home Loan Options
At Mantra Mortgage, we offer several low-deposit loan options. You can start with as little as 5% down, making homeownership more accessible. We also help first-time buyers navigate the First Home Owners Grant (FHOG), which can contribute significantly to your deposit.
Step 3: Understanding Government Grants
In Australia, first-home buyers are eligible for various grants and concessions that can help reduce the financial burden. The First Home Owners Grant offers up to $15,000 for new builds, while stamp duty concessions vary by state.
First Home Owners Grant (FHOG)
Eligible first-time buyers can receive up to $15,000 for new homes or builds. These grants are available in most Australian states, including South Australia. Mantra Mortgage can help you determine your eligibility and manage the application process.
Step 4: Pre-Approval for Your Home Loan
Securing a pre-approval is a critical step before house hunting. Pre-approval not only gives you an idea of how much you can spend but also shows sellers that you’re a serious buyer. Pre-approvals generally last for three to six months, giving you time to search for the perfect property.
How to Get Pre-Approved
To get pre-approved, you’ll need to submit financial documentation, including income statements, bank records, and credit history. Our mortgage brokers will guide you through the process, ensuring you secure the best possible terms.
Step 5: The Home Buying Process
Once pre-approved, you’re ready to start searching for your dream home. Begin by selecting an area that fits your lifestyle and budget. Research local amenities, schools, and transport links. Don’t rush—take your time to find a home that meets both your needs and your financial comfort zone.
Costs to Consider Beyond the Purchase Price
First-time buyers often overlook the hidden costs of buying a home. In addition to your mortgage, expect to pay for inspections, legal fees, and insurance. Mantra Mortgage offers comprehensive consultations to ensure you’re financially prepared for all eventual costs.
Step 6: Finalizing Your Home Loan
After making an offer and having it accepted, you’ll need to finalize your home loan. Your lender will conduct a property valuation to confirm the purchase price matches the loan offer. Once complete, the settlement process can begin.
Tips for a Smooth Settlement
Ensure all necessary documentation is in place, including contracts and insurance. Settlement typically takes between 30 and 90 days, depending on the property and loan provider. Our team will support you through every step, ensuring a smooth and stress-free experience.
Conclusion: Make Your First Home Purchase a Reality
Buying your first home is a life-changing experience. At Mantra Mortgage, we’re committed to simplifying this process, offering expert advice on low-deposit loans, government grants, and financial planning. With our help, you’ll be moving into your dream home sooner than you think.
