Buying Your First Home in 8 Steps

Hello Chasers,

Buying your first home is a massive achievement! But before you jump in and grab the nearest “For Sale” sign, let’s strategise. 

Here’s your roadmap to becoming a happy homeowner, complete with info on Victorian government grants to help you on your way.

  1. Financial Fitness First!

Like any champion in training, you need to assess your financial situation. This means creating a budget to see how much you can realistically afford for a home. Consider your income, savings, expenses, and existing debts. Don’t forget to check your superannuation for income protection cover – this is crucial if you plan on taking out a home loan.

  1. Building Your War Chest:

Saving for a deposit is key. The higher your down payment, the lower your monthly mortgage repayments will likely be. Aim for at least a 20% deposit, but remember there are options for smaller deposits with government grants (more on that later!). Having an emergency fund of $2,000 and 3-6 months of living expenses tucked away is also wise for unexpected bumps in the road.

  1. Get Pre-Approved Like a Pro:

Before you start house hunting, get pre-approved for a mortgage. This will tell you exactly how much you can borrow and keep your home search focused on properties within your budget.

  1. The Hunt Begins!

Now for the fun part – finding your dream home! Consider factors like location, size, amenities, and price. Work with a real estate agent to find properties that tick all your boxes.

  1. Making Your Move:

Once you find “the one,” work with your agent to craft an offer. Remember, in Victoria, if you’re buying at auction, you’ll need to have your financing and inspections done beforehand. For private sales, you can usually make your offer conditional on these checks.

  1. Inspect Before You Invest:

Schedule a home inspection to identify any potential problems with the property before you commit to buying. This will help you make an informed decision.

  1. Negotiate Your Loan Like a Boss:

Just because you have pre-approval from one bank doesn’t mean you can’t shop around for a better interest rate. Don’t be afraid to negotiate for the best deal!

  1. Settlement Day!

Find a solicitor to handle the legal paperwork for settling your purchase.

Victorian First Home Buyer Grants: Your Winning Ticket

The Victorian government offers a helping hand to first-time homebuyers through various grants and schemes. Here are some of the big hitters:

  • First Home Owner Grant (FHOG): This national grant offers eligible Victorians a one-off payment of $10,000 for purchasing or building a new home. The amount and eligibility criteria can vary, so be sure to check the details.
  • First Home Buyer Duty Exemption or Concession: Victorians buying a new or established home may be eligible for a stamp duty exemption or concession, saving you money upfront. The amount you pay depends on the property value and whether it’s your primary residence.
  • First Home Loan Deposit Scheme (FHLDS): This federal scheme lets eligible first-time buyers purchase a home with a deposit as low as 5% and avoid paying Lenders Mortgage Insurance (LMI).
  • Shared Equity Scheme: This Victorian government scheme helps eligible buyers purchase a home by contributing to the purchase price. In return, the government gets a share of the ownership until you buy them out later.

Remember: These grants and schemes have specific requirements and can change, so be sure to do your research and seek professional advice for the latest info.

You Got This!

Buying your first home is a major win. By following these steps and exploring the available government grants, you’ll be well on your way to becoming a homeowner!

Contact our experienced mortgage brokers on 03-55612643 if you are ready to explore your options.

Have a great day!

Read more of our daily blogs for valuable insights and stay up-to-date with the latest industry news – click here to access the full article on our blog page.

General advice disclaimer

The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

Only lending advice provided by CeebeksTM Financial Solutions is associated with Outsource Financial Ltd Credit Representative 396061.

Chris Beks is a director of CeebeksTM Financial Solutions and a Credit Representative (credit representative no. 396061) of Outsource Financial Ltd  Limited  ABN 42 131 090 705; Licence Number 384324  an independently owned and operated Aggregator, and is authorised to provide personal credit advice. For more information, you can read our Credit Guide, or contact us for more information on our available services. 

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