First home buyer tips and basics

How much should I borrow?

If you’re a first home buyer and not sure how to get your first home loan, our borrowing calculator is a great place to start. This will give you an idea about how much you can borrow, as well as giving you an idea of what your repayments might be. How much you borrow can also depend on things like your income, expenses, deposit, the number of kids you have and the type of house you want to buy.

For an even better picture, you can book an appointment with your local Aussie broker which is at no cost to you. Your broker is your home loan expert and will take your finances and home loan needs into consideration to help you find the right loan.

Our brokers can also give you some tips if you’re not quite ready to take out your first home loan. They can show you how to cut down your everyday expenses by doing things like taking your lunch to work and using public transport. They might also be able to show you ways to pay off your other loans faster or reduce your credit limits. These are some of the steps that can help you get your dream home sooner. 

What sort of deposit do I need?

Your deposit is dependent on a variety of factors including the type of home you want to buy, its value and your finances. Most lenders want you to have at least a 20% deposit so you don’t have to pay lender’s mortgage insurance (LMI). This protects the lender if you can’t keep up with your repayments. But if you’re happy to pay LMI, a 5% to 10% deposit might be enough. Having a guarantor can also reduce the deposit you need.

How much does it cost to buy a home?

The property price is just one of the costs when you buy a home. Some of the other expenses include;

• insurance
• legal/conveyancing fees
• LMI
• mortgage or loan application fees
• pest and building inspection reports
• strata searches (for apartments)
• stamp duty
• utility connections

These costs are different in each state and territory and vary depending on who you use to provide them. Your expenses also depend on the area you want to buy in, the type of property you’re buying, your home loan product and your deposit amount.

To narrow down your dream property search, try Aussie’s Suburb Spotter Map for an idea of how much of a deposit you’d need for the areas you’re looking to buy in. Your local Aussie broker can also give you an idea about costs.

Keep learning