Buying your first home can feel complicated. From understanding your deposit and borrowing capacity to working out which government assistance may be available, there is a lot to consider.
LoanFolio, powered by RESIDER, can help you understand your home loan options and the finance process.
How much deposit do I need to buy my first home in Victoria?
There is no single deposit amount that applies to every first home buyer.
A larger deposit can reduce the amount you need to borrow and may help you avoid Lenders Mortgage Insurance (LMI). However, some lenders may accept a smaller deposit, depending on your circumstances and their lending requirements.
Eligible first home buyers may also be able to purchase a home with a minimum 5% deposit through the Australian Government 5% Deposit Scheme without paying LMI, subject to the scheme’s eligibility requirements and property price caps.
You also need to budget for other costs associated with buying a property, not just the deposit.
How much can I borrow as a first home buyer?
Your borrowing capacity depends on your individual financial circumstances.
Lenders generally consider your income, employment, living expenses, existing debts, credit history, deposit and the property you are looking to buy.
This means two people with similar incomes can have very different borrowing capacities.
LoanFolio can help you understand your potential borrowing position and explore home loan options based on your circumstances.
Can I buy my first home with a 5% deposit?
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase an eligible home with a minimum 5% deposit without paying LMI.
The scheme can apply to eligible new or existing homes, including houses, townhouses and apartments, subject to the scheme’s requirements and location-specific property price caps.
You must still meet the participating lender’s normal lending and credit requirements. Being eligible for the scheme does not guarantee that your home loan will be approved.
How much stamp duty do first home buyers pay in Victoria?
Eligible first home buyers in Victoria can receive a full land transfer duty exemption when buying a home with a dutiable value of up to $600,000.
For a home with a dutiable value between $600,001 and $750,000, a reduced amount of duty applies.
The concession can apply to eligible new or established homes, as well as eligible vacant land intended for your first home, subject to the relevant requirements.
What is the First Home Owner Grant in Victoria?
The Victorian First Home Owner Grant provides $10,000 to eligible first home buyers who purchase or build a new home valued at up to $750,000.
The home must meet the requirements for the grant, including being a new home that has not previously been sold or occupied as a home.
The grant is subject to eligibility and residency requirements.
The First Home Owner Grant is separate from the Victorian first home buyer land transfer duty exemption or concession, so an eligible buyer may potentially qualify for both.
What government help is available for first home buyers?
There are several Australian Government and Victorian Government programs that may assist eligible first home buyers.
These include the Australian Government 5% Deposit Scheme, the First Home Super Saver Scheme, the Help to Buy Scheme, the Victorian First Home Owner Grant and the Victorian first home buyer land transfer duty exemption or concession.
Each program has different eligibility requirements, property requirements and conditions. Some programs may be used together, while others have specific rules about combining benefits.
It is important to check the current requirements of each scheme before relying on a particular benefit.
Can I use my super to help buy my first home?
The Australian Government First Home Super Saver Scheme (FHSS) allows eligible first home buyers to make voluntary contributions to their superannuation and later apply to release eligible amounts to help purchase or build their first home.
The FHSS has specific rules covering eligible contributions, release amounts and eligibility.
If you are considering using the FHSS, it is important to understand the rules before making decisions about your superannuation.
Should I get pre-approval before looking for my first home?
For many first home buyers, getting pre-approval before seriously searching for a property can be helpful.
It can give you a clearer idea of your potential borrowing capacity and help you establish a realistic price range.
However, pre-approval is not the same as final loan approval. The lender will still need to assess the property and complete its final checks before approving the loan.
Having your finance organised can also make it easier to move forward when you find a property you want to buy.
Can LoanFolio help me with my first home loan?
Yes.
LoanFolio can help first home buyers understand their borrowing position, explore home loan options and work through the finance process.
We can also help you understand how your deposit, borrowing capacity and potential government assistance may fit together.
LoanFolio has access to a range of lenders, including major banks and specialist lenders, allowing us to compare available loan options based on your circumstances.
You can have a free, no-obligation conversation with LoanFolio about your finance options.