Table of content
Table of content

You’re a first home buyer; what assistance can you get?

There are three ways you can get assistance in Victoria when purchasing a house. These include First home owner grant (FHOG), First home buyer duty exemption, concession or reduction and land transfer duty waiver for residential property.

The perks of having a broker are that they can assist you in checking your eligibility and the application process. Each assistant type has different terms, conditions and eligibility requirements. Below is a very brief description of each grant/saving program.

First Home Buyer Duty Exemption, Concession or Reduction

When you purchase your first home in Victoria, you may be eligible for an exemption from paying stamp duty or a concession. Stamp duty is a tax on purchasing your property (land, home or investment). The discount you receive depends on the value of your home.

First Home Owner Grant (FHOG)

When building or buying a new home in Metro Melbourne, you may be eligible to receive a $10,000 grant to purchase your owner-occupied home.

Land transfer duty waiver for residential property

The Victorian Government announced in November a stamp duty waiver that is up to 50% on residential properties valued at $1 million or less.

How can our broker team help first home buyers?

It can be a daunting and overwhelming experience for first home buyers with little to no knowledge of the products, services and processes. Our broker team can put their
expertise to play when assisting you in purchasing your first home. We understand your situation and help you achieve your goals by helping you from start to finish. Our brokers can help to ensure you are ready, and when you are, they can help in crafting the perfect home loan application.

Process of buying a property

So you’ve decided you want to purchase your first home, but where do you start, and what’s the start to end process?

  • Eligibility & Affordability:
    Firstly, you need to check your eligibility and affordability, which is when your broker will get to know you deeper. The broker will understand your financial situation, including your current income, expenses and outgoings, credit history and other details needed when applying for a home. The broker will determine if you are ready to purchase a home based on your financial check and deposit amount and discuss either step needed to ensure you are ready or proceed to a pre-approval application.
  • Pre-approval:
    A pre-approval is essentially completing an application without pressing the submit button. A pre-approval does conduct an enquiry into your credit history and will determine whether you are eligible to proceed with a formal application. The pre-approval will also give you your borrowing capacity based on your affordability and deposit amount, so you know your budget when looking for a home.
  • Choosing A House:
    Looking for a home is the exciting part. You can begin to look for places on realestate.com.au and attend auctions and inspections. You may decide that you want to build, so this would be the time to look at display homes and discuss your needs with your preferred building company.
  • Making an offer:
    Once you have your heart set on a house that you want to purchase and have had your broker discuss every little detail regarding the application, building inspection and so on, it’s time to make an official offer! If you decide that you want to build your first home, this is when you would sign documentation.
  • Complete Settlement:
    It’s time to finalise property settlement by paying stamp duty and land transfer fees, signing the entire home loan contract with the vendor, receiving transferred title deeds and documents and getting home and contents insurance.
  • Move-in!

Costs when purchasing a home

There are several different costs involved when purchasing a home, and these will be discussed with your broker and more in-depth when signing your home loan documentation. The fees include but are not limited to Stamp duty, mortgage application fees, conveyancer and legal fees, inspection fees, mortgage registration fees and more.

Tips for first home buyers

  1. There’s no rush when making the most significant commitment of your life.
  2. Educate yourself on different loan types, investigate the costs involved, and think about your financial goals.
  3. Ensure you are well informed throughout the entire process and don’t leave any questions unasked.

Common mistakes

  1. Having an unrealistic understanding of the costs involved.
  2. Rushing into a decision
  3. Skipping the building inspections
  4. Having not enough savings
  5. Borrowing your absolute limit
  6. Incorrectly reading and or lodging an application
  7. A false understanding of how much you can borrow

How do I know which property is best for me?

When you know, you know! Trust your gut feeling and ensure that you are very knowledgeable before making an informed decision. Factors to consider are the purpose of the purchase, property price and type, whether the purchase is a good investment and how you intend to live in it.