TLDR
- Government initiatives may assist eligible first home buyers.
- Purchasing a property involves costs beyond the deposit.
- Pre-approval can help buyers understand their borrowing capacity.
- Understanding common pitfalls may help avoid delays during the buying process.
Buying a first home is a significant milestone, but it often comes with many questions. From saving a deposit to understanding the home loan process, there are several factors to consider before entering the property market.
Understanding available assistance
Depending on eligibility requirements, government initiatives such as grants, guarantees, and stamp duty concessions may be available to some first home buyers. These programs can vary between states and territories and may change over time.
Looking beyond the deposit
While saving a deposit is often the primary focus, there can be additional costs associated with purchasing a property. These may include legal and conveyancing fees, building and pest inspections, lender fees, insurance, and moving expenses.
What is pre-approval?
Pre-approval is an indication from a lender of the amount a borrower may be able to borrow, subject to meeting lending criteria. It can provide a clearer understanding of a budget before beginning a property search.
Common mistakes to be aware of
Some first home buyers may underestimate the costs involved in purchasing a property, make significant financial commitments before settlement, or begin searching for properties before understanding their borrowing capacity. Being familiar with the process can assist with planning and preparation.
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