Are you ready to take the exciting step of buying your first home? It’s a goal many people work hard to achieve, but let’s face it—figuring out how to save for a deposit, apply for grants, and handle inspections can feel a bit overwhelming. The great news is that, with a bit of guidance, it’s completely doable.
This guide is designed to break everything down into simple steps to help you move forward with confidence. No matter if you’re looking to buy house in Hobart, Tasmania, or anywhere else in Australia, this is the roadmap you’ve been looking for to make your first home buyer journey a reality.
How Much Deposit Do You Need to Buy a House?
One of the first questions on every first home buyer’s mind is: “How much deposit is needed to buy a house?” In Australia, the general rule is to save at least 20% of the property’s purchase price. So, if the house you want costs $600,000, you’d need around $120,000 saved up.
The good news is you don’t always need the full 20%. Many lenders are flexible and may accept smaller deposits, sometimes as low as 5–10%. However, if your deposit is below 20%, you’ll need to pay the Lender’s Mortgage Insurance (LMI), which adds a bit to the cost but opens up more opportunities.
Tips to Save for Your Deposit:
- Savings: Create a separate savings account specifically for your deposit. It’ll help you stay focused and prevent you from dipping into those funds by mistake.
- Budget: Go through your budget and find areas to trim back. Cutting down on things like unused subscriptions or eating out can make a big difference over time.
- Government Grant: Check out government programs like the First Home Super Saver Scheme, which allows you to save through your superannuation while enjoying tax advantages. Wondering, “Can you use superannuation to buy a house?” Yes, under this scheme, it’s possible!
- Research: Spend some time researching property prices in the area you’re hoping to buy a house. Prices can vary a lot across Australia, so knowing the average in your suburb of interest will help you set a realistic target.
The earlier you start saving, the better. Consistency is key, and every dollar saved moves you closer to making your first home buyer dream a reality!
First Home Buyers Grant: What’s Available in Your State?
If you’re a first home buyer, you might be eligible for government grants to make buying your first property a bit easier. The details of these grants depend on which state or territory you’re buying in, so it’s important to check what you might qualify for.
New South Wales (NSW)
- You can claim up to $10,000 for new homes priced at $750,000 or less.
- Stamp duty exemptions for properties valued up to $800,000.
Victoria (VIC)
- You can receive $10,000 for new homes in metro areas, while buyers in regional areas can access a higher grant of $20,000.
- For properties priced below $600,000, you’ll also qualify for full stamp duty exemptions, which can significantly lower your costs.
Queensland (QLD)
- First-home buyers can access $15,000 for new homes priced at $750,000 or less.
- You might also be entitled to transfer duty concessions, making homeownership more affordable.
Tasmania (TAS)
- A generous $30,000 grant is available for new homes or off-the-plan purchases.
- It’s especially appealing for first-home buyers in Hobart or those looking to buy a house in Tasmania or build anywhere in the state.
How to Secure the Right Home Loan for Your First Home Buyer Journey
Sorting out the right home loan can seem overwhelming at first, but breaking it down into clear steps makes it much more manageable.
Step 1: Know Your Borrowing Power
Before you apply, work out how much you can borrow. How much you’ve saved for a deposit, how much you earn, and how much you spend each month will determine how much you can afford. An online borrowing power calculator is a great way to set realistic expectations when considering how to buy a houseᅳit’s a great way to get a rough estimate.
Step 2: Compare Lenders
Don’t just take the first lender you come across. Compare interest rates, loan features like redraw facilities or offset accounts and any fees. It can make a big difference to pick the right lender.
Step 3: Get Pre-Approval
This is your green light to start house hunting. This is especially useful if you’re bidding at an auction or negotiating on a property.
Step 4: Understand Loan Types
Fixed-rate loans have fixed repayments, and variable-rate loans have variable repayments. A mortgage broker can help you decide whether to go with a mortgage broker if you’re unsure.
Step 5: Prepare for the Unexpected
Allow for surprises in your budget. There is a chance that interest rates will go up or that unexpected expenses will appear. Don’t let stress later in life come from unexpected expenses or potential interest rate increases.
Essential Inspections and Checks Before You Buy House
Imagine buying a car without taking it for a test drive. Sounds risky, right? The same logic applies to buying a house—only it’s a much bigger investment. Getting thorough inspections done is a must to ensure there are no hidden issues.
Types of Inspections
- Pre-purchase Building Inspection: This checks the property to see if the walls, roof and foundations are in good solid condition.
- Pest Inspection: A good step to check for termites or any other pest that can cause a lot of damage to the property.
- Strata Inspection: This inspection looks at shared areas and financial records to find any potential problems if you’re buying an apartment or townhouse.
These inspections don’t just protect you from unexpected problems—they also give you leverage during negotiations. For instance, if the inspection finds the roof needs repairs, you could ask for a price reduction or request the seller fix it before settlement.
Ready to Buy a House in Hobart or Anywhere Else? Book a Building Inspection
Congratulations—you’re just one step away from owning your first home buyer property! But before you take that final step, make sure your investment is safe with a professional building inspection.
At Fearless Building Inspections, we specialise in helping first home buyers like you make confident, informed decisions. Our detailed reports highlight everything you need to know, from structural concerns to pest issues, ensuring there are no surprises after you move in.
Buying your first home buyer property is an incredible milestone, and we’re here to help make it as seamless as possible. Get in touch with us today to book your building inspection and take the final step toward owning your dream home with peace of mind!