First Home Buyer Section - Part I: Where to Start?

With my 15 years experiences in both lending and real estate industries, the most common questions I have been asked by first home buyers are: where should I look for the information? How do I start this process?

Here are the few key points that I have created for you, and hopefully they will be useful to you through the journey of finding your first dream home…

1.       Show me the money!

2.       Find you the funding.

3.       Are you the lucky?

4.       See the right propy…

5.       Appoint a good convey.

6.       Waiting for the HOUSE-KEY!

Show Me the Money!

In reality, when you try to purchase your first home, you will not be able to borrow 100% of the purchase price in Australia today. As a home buyer, you will be required to contribute certain amount of saving towards to the purchase. However, the million-dollar question is, what could be the minimum amount of the saving you need to have in order for you to be able to purchase?

In general, depending on your eligibility in the current first home buyer benefit from the Government, you may need to save up to 5% to 15% of the purchase price if you want to buy a property in Victoria TODAY! (Updated on 1/11/2020)

Here is the simple equation for you: PurchasePrice + StampDuty/Transfer + Bank/OtherLegal/Registration/Others + LMI = ProposedLoanAmount + AvailableFund (Saving/FHOG/StampDutyDiscount/Others)

Majority of banks in Australia today may only lend you up to 95% of the property value. In other words, you will need to have enough saving to cover other costs such as Stamp Duty, Title Transfer Fee, Conveyancer/Lawyer cost, Mortgage Registration Fee, LMI (Lenders Mortgage Insurance), and others. As a result, even the lender says you are able to borrow 95% of the property value (or purchase price), you sill want be able to purchase your first dream home if you only have saved 5% of the purchase price!