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7-Step Guide for First Home Buyers

Are you tired of renting and ready to buy your first home? Before you jump in and sign a contract on a new or existing home, review our 7-step guide to buying your first home.

1. Prepare a budget

Start by calculating what you earn and what you spend each month, taking into account all your weekly, monthly and annual commitments. The surplus from each month can be used to save for a deposit, or if you already have one, ongoing loan repayments. Remember to make it realistic and achievable.

2. Save for a deposit

Ideally, you should aim for a 20% deposit, so you don’t have to pay mortgage insurance. However, some lenders will accept lower deposits if you have a good financial track record. You may also want to look at the government’s First Home Super Saver Scheme.

3. Conduct your research

Once you have your financial affairs in order, it’s time to do your research. Workout where you would like to live or invest (if you’re buying your home as an investment) then research each suburb online and then go to open for inspections and auctions. Don’t be afraid to ask real estate agents questions as this will help you get a better understanding of what you’re potentially buying.

4. Get finance approval

Now that you have a good feel for how much you need to spend, it’s always a good idea to get a finance pre-approval. If you don’t, you run the risk of signing up for a property that you may not be able to pay for.

5. Find your property

With a finance pre-approval in place you can now get serious, narrow your search and find the property to make an offer on, or if building a new home, choose your builder or new home package. It’s important to be patient at this stage, as it can sometimes take months to find your ideal property.

6. Sign all the contracts

If you’re buying an existing home, you will need to exchange contractors with the vendor (seller). This will typically include a Section 32 (Vendor’s Statement) and a contract of sale. If you’re building a new home you will also need to sign a building contract. It’s always a good idea to engage a conveyancer to check this to ensure you’re getting what you pay for.

7. Complete settlement

Before taking possession of your home, you will need to complete settlement. Your conveyancer will assist you with this process. We can also assist with the process, ensuring everything goes smoothly and you can move in or start advertising for tenants.

Incentives for First Home Buyers

If you’re buying or building a new home valued at up to $750,000 you could be eligible for the First Home Owners Grant (FHOG), which offers up to $20,000 for eligible first home buyers ($20,000 for new homes purchased in Regional Victoria, $10,000 for metropolitan Melbourne). You may also be eligible for stamp duty exemption (for homes up to $600,000 or stamp duty concession (for homes between $600,001 to $750,000).

For more information about the FHOG and stamp duty concessions click here

Talk to Ben, our lending specialist ...

To discuss your lending requirements contact Ben McDonald (03) 5331 3711 or complete the enquiry form on this page.

Accredited National Mortgage Broker

PPT Capital Pty Ltd (ABN 33 283 085 421, Credit Representative Number 393944) has access to a panel of lenders through National Mortgage Brokers Pty Ltd (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596). PPT Capital Pty Ltd has access to products including those from Liberty Financial.

DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

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