The ultimate guide to property for first homebuyers

Buying your first home can be overwhelming. There’s so much to think about, decisions to make and planning to do. We believe the process should be enjoyable and seamless. That’s why we’ve created a clear guide on the steps to take towards your new home.

1.    Getting started.

Before you start the process of looking for your home and speaking to builders about the design to suit your needs, sit down and work out how much you can borrow and how much you can afford to spend. Look over your finances, income and savings and work out a budget that will show you how much you can spend on your mortgage payments. You will need to have finance approved before you start the process of building your new home, so it’s important to get pre-approval on your home loan at this point.

2.    How much can I borrow?

MyChoice Home Loans has a handy borrowing calculator that you can use to work out how much you will be eligible to borrow. This is just a guide; one of our experts will be able to provide more detail on your loan options when you speak with us. Although your borrowing capacity may be a lot, it’s important to remember to not over-commit yourself and make financing your new home difficult. Consider both your present and likely future income and make considerations for changes in the interest rates or repayments on your home.

Click here to calculate your borrowing power.

3.    What are the different costs you will need to consider when buying your first home?

Beyond the price of the house and the loan repayments, there are a number of costs you need to consider before buying your new home. These will depend on the price of your property and the size of your home loan. The additional costs include:

  • Building inspections
  • Legal fees
  • Loan establishment charges
  • Pest inspections
  • Stamp duty (or ‘transfer’ duty)
  • Moving expenses
  • Many Australian states offer stamp duty exemptions to first homebuyers building their home brand new, which is a fantastic saving for your home. You can calculate the stamp duty for your new home by using our handy calculator.

Click here to calculate your stamp duty.

4.    Getting pre-approval on your first home loan.

It’s important to get pre-approval on your home loan before you start the search for the perfect home. Getting pre-approval on your home loan will give you the confidence to look for a design and block of land in your price bracket and will ensure you don’t become disappointed if you get your heart set on a property/home outside of your budget.

5.    The First Home Owner Grant (FHOG) explained.

As a first homeowner, you may be eligible for a one-off grant payment from the NSW government.

The First Home Owner Grant is available to people who purchase a new property to the value of $750,000 or less (including the home and land).

The amount of the grant is $10,000 and you need to live in the home for a continuous period of at least 6 months to be eligible. For details and eligibility criteria, click here or speak to one of our experts.

6.    What other concessions could you be applicable for?

You could also be eligible for:

The First Home Plus Scheme

First homebuyers may be eligible to receive the exemptions or concessions on stamp duty (including vacant land on which you intend to build) provided through the NSW First Home Plus Scheme.

  • Stamp duty exemptions for homes valued up to $500,000.
  • Stamp duty concessions for homes valued between $500,000 and $600,000.
  • Stamp duty exemptions for a vacant block of residential land to build your home.
  • Stamp duty concessions for vacant land valued between $300,000 and $450,000.

Up to a $17,900 stamp duty exemption is available, depending on the property.

Home Builders Bonus

The Home Builders Bonus provides further concessions on stamp duty.

  • For the purchase of new homes for less than $600,000 purchased ‘off the plan’, stamp duty will no longer apply.
  • For homes worth up to $600,000 bought during construction or at completion, stamp duty will be cut by 25% (equating to a saving of $5,623).

As a first homebuyer in NSW, you can save up to a maximum of $22,4490 thanks to the Home Builders Bonus. While these concessions were initially applied only until 2012, they have been extended.

7.    Which first home lenders should you talk to?

With so many home loan products and lenders available, it can be difficult to know where to start when it comes to financing your new home. The team at MyChoice Home Loans will be able to guide you to the best loan for your personal circumstances. Here is how:

  • We have access to most of the home loan products and providers available, including from the major Australian banks.
  • We focus on really getting to know you and understanding your unique needs so that we can find the right home loan for you.
  • We review your home loan every two years to ensure you always have the best home loan available. As things change over time, such as your personal circumstances, the economy, home loan products and interest rates, your home should continue to be the best option for you.

At MyChoice Home Loans, we know that everyone is different. We use a 6-step method to analyse your situation and gain a thorough understanding of your needs. This allows us to provide the best home loan match for you. Moreover, our service is provided to you free of charge – you pay nothing!


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