Can I buy my first home?

can i buy my first home

Buying a home is one of the most exciting things you will go through in your entire life – it can also be super daunting because you are also buying the single biggest asset of your life, but where do you begin? Are you asking yourself ‘Can I Buy a Home’? Well don’t worry, this is something we get asked all the time and we can help you out.

In this article we’ll answer these questions:


First Question to ask is: Have you saved a deposit?

This is even more important than the first question, because having a deposit is the very first thing a bank will look for before getting a home loan.

When you are applying for a home loan the bank usually has two things they look for first and foremost – how much deposit you have, and how much income you earn. We’ll talk about the income in another article so lets start with how much deposit you are going to need to have saved away as a first home buyer!

How much deposit do you need for an Existing Home?

For Existing Homes, the banks are looking for 8% to 10% of the purchase price as your initial deposit.

  • Existing Home: 8% to 10% of purchase price as deposit
    • Bank Deposit: 5%
    • Stamp & transfer duty: 4%
    • Conveyancer: $1,500
    • Other Costs: $1,000

So what this means is if you in Brisbane for example and purchasing a $500,000 first home, you are going to need around $30,000 as your deposit as a first home buyer – but remember this will change state to state as the stamp duty figures and first home owners concessions are all different depending where you live.

  • Purchase $500,000 existing home
    • Bank Deposit: $25,000
    • Stamp & transfer duty: $1,450 (reduced as QLD have concessions for first home owners and when purchasing a property to live in but this changes state to state).
    • Conveyancer: $1,500
    • Other Costs: $1,000

How Much deposit Do I need?

Can I get the First Home Owners Grant (FHOG) on new property?

What happens if you want to buy a brand newly build property? Or build a new home yourself? As a first home owner you may be eligible for the First Home Owners Grant which in some cases can be up to $20,000 which can also form part of your deposit to purchase. Stamp duty is sometimes waived when buying a first but check with your local Office of State revenue to see what you are eligible for.

How much is the Queensland First Home Owners Grant (FHOG)?

The Queensland First Home Owners Grant is a state scheme to help get more first home buyers into their home sooner, and depending on when you sign your purchase contract you can get $15,000 or $20,000 towards buying or building your new home, unit or townhouse – provided it is valued less than $750,000.

There are a few criteria you need to meet to qualify for the Queensland grant, and you can choose to buy off the plan or build the property yourself provided you:

  • You need to be at least 18 years of age.
  • You have to be an Australian citizen or permanent resident
  • You or your spouse must not have previously owned property in Australia that you lived in.
  • You must be buying or building a brand new home.
  • The value of the home including the land is less than $750,000.
  • You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
can i buy my first home

Can I buy my first home? You might qualify for the First Home Owners Grant.

How much deposit do you need when buying a brand new first home

For New Homes, the banks are looking for 5% to 8% of the purchase price as your initial deposit.

  • New Home: 5% to 8% of purchase price as deposit
    • Bank Deposit: 5%
    • Stamp & transfer duty: No stamp duty (some states only)
    • Conveyancer: $1,500
    • Other Costs: $1,000
    • First Home Buyers Grant (QLD) + $20,000

So what this means is if you in Brisbane for example and purchasing a brand new $500,000 first home, you will only need around $10,000 as your deposit as a first home buyer once you factor in the $20,000 being provided by the Queensland First Home Buyers grant – but remember this will change state to state as the stamp duty figures and first home owners concessions are all different depending where you live.

  • Purchase $500,000 existing home
    • Bank Deposit: $25,000
    • Stamp & transfer duty: $1,450 (reduced as QLD have concessions for first home owners and when purchasing a property to live in but this changes state to state).
    • Conveyancer: $1,500
    • Other Costs: $1,000
    • First Home Buyers Grant (QLD) + $20,000

What does this all mean in short?

To summarize, if you’re buying an existing you’ll need to save up 8% to 10%. So, on a $500,000 purchase you’re going to need about $50,000 saved up towards your first home – remembering that  depending on your state you might not have to pay stamp duty.

For new properties you might be eligible for the first homeowners grant – The Queensland First Home Owners Grant is up to $20,000 which can be used towards your deposit.

Latently remember its not all doom and gloom if you don’t have a deposited saved. We have other options like a Guarantor Home Loan or Gifted Deposit Funds we can discuss to help you get into your first home.

Help this is all confusing

If you are a first home buyer speak with one of our experienced mortgage brokers to walk through the next steps with you.

At Hunter Galloway we help first home buyers get ahead in this competitive market, we give you the actual strategies that have helped other first home buyers like you secure a property when there have been 5 other offers on the table! Enquire online or give us a call on 1300 088 065.

Mortgage Broker

Author Mortgage Broker

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