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Your complete First Home Buyers guide from a qualified financial planner

Your complete First Home Buyers guide from a qualified Financial Planner

Buying your very first home can be equally thrilling and overwhelming at the same time. It is a pivotal step to take, so we have put together a first home buyer’s checklist to help run through the journey with relative clarity and confidence.

Work out How Much you Can and Should Borrow

First things first, book an appointment with your financial adviser and go over your budget, assets and overall objectives. Are you planning to have a family soon? Have you been working at your job for a few months or a couple of years? What are you willing to sacrifice in your lifestyle to get the house you really want? Questions like these will help you ascertain whether you are in the right position to get a home loan, and also how much you can borrow from the banks and lenders. Check out our handy calculator.

Go over your budget and work out what you can do without, to make room for a mortgage repayment. Once you have set up a plan, it’s a good idea to save at least 10% of the price of the type of home you would like to buy, to give you a better chance of a loan application being approved. Once you have your deposit saved, it is then time to book in with your mortgage broker [link:] and get the ball rolling. Your mortgage broker will show you a panel of lenders and a range of loan products, and help you choose a home loan that is especially suitable for a first home buyer, with loan features to suit your needs.

How to budget for a home loan

Understand What Kind of Home Buyer Assistance You May be Eligible For

There are so many grants and incentives available in New South Wales that it can be confusing and daunting to sift through them all. Speak to your financial adviser or mortgage broker to work which incentive you would be eligible for.

Below is a quick summary.

NSW Shared Equity Scheme

  • The NSW Government will contribute a percentage of the purchase price of a property in exchange for an equivalent interest in the property.

Those applying need to be:

  • single parents of a dependent child or children
  • single people 50 years of age or above, or
  • first home buyer key workers (nurses, midwives, paramedics, police officers, teachers, or early childhood educators.

Read more about the NSW Shared Equity Scheme here.

Single parents may be eligible for the NSW Shared Equity Scheme

Australian Government First Home Loan Deposit Scheme

Permits you to take out a mortgage with just a 2-5% deposit and avoid paying the lender’s mortgage insurance (LMI).

NSW Stamp Duty Waiver/Discount

Established/New Homes:

  • No stamp duty up to $800,000
  • Discounted stamp duty from $800,000 – $1,000,000

Vacant Land:

  • No stamp duty up to $350,000
  • Discounted stamp duty from $350,000 – $450,000

You may be eligible for NSW Stamp Duty Waiver/Discount

NSW First Home Buyers Grant

  • $10,000 grant
  • Buying or building your first home.
  • It must be a new home that no-one has lived in before you
  • It cannot be worth more than $750,000.

Australian Government First Home Super Saver Scheme

This scheme allows you access up to $50,000 contributions of your voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to put aside for your first home.

Obtain a Formal Loan Approval

At this point, you may have already achieved pre-approval. You must give evidence to show that you are financially dependable on the bank or lender you are applying to. You can do this by showing evidence of being employed in a stable job and that you have ample savings in the bank. If anything has changed with your finances since getting your pre-approval, speak to your mortgage broker to ensure that this will not affect your formal loan approval.

When buying a house, research locations and prices

Research Locations and Prices

While you wait for your loan approval, ask lots of questions and speak with family and friends about different areas that they live in that you are interested in. Speak to real estate agents about your options and get good advice.

A house may have a price tag on it, but there are additional costs that must be discovered. Visit a few homes on offer and try to give yourself an accurate idea of what costs you may really be up for. A brand-new house may be more expensive, but an older home may need a new kitchen and bathroom and perhaps some repairs. Make sure you go into the purchase of a property with a clear idea of what all the costs may be before you settle on the house of your dreams.

And remember, speak with a professional mortgage broker – they don’t usually charge for their services.

Talk to a Professional

Buying your first home is a big step! Fortunately, you don’t have to walk through it alone and you will most likely find that done alongside professionals, the first home buying process is not as overwhelming as you may have thought. Book an appointment with your financial adviser to work out your first home goals, and have a plan developed that is tailored to your needs and situation. Contact Elliot Watson Financial Planning today on  02 4038 1623 to book an initial meeting or complete our Contact form and our friendly staff will contact you.


The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness regarding your objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of the licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the author’s express written consent.
Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

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