While buying your first home is an exciting life milestone, it can also be incredibly overwhelming. The homebuying process involves many moving parts that require careful consideration and planning. With a wealth of information available online, it can be difficult to narrow down exactly what you need to do when you embark on this journey, especially when it comes to securing a mortgage.

Luckily, our team at LiveInvest Financial Solutions has come up with a quick guide to break down the essentials of applying for a mortgage as a first-time homebuyer in Australia.

The Homebuying Process, Simplified

Knowing what to expect from the homebuying process can make the process less daunting for first-time homebuyers. Here’s a quick overview:

1. Determine Your Budget: If you’re ready to buy a home, you should have already determined you’re in good financial standing to do so. If not, take the time to assess your financial situation, including income, savings, emergency fund, and debt. In this step, you should also plan for costs like legal fees and insurance.
2. Mortgage Pre-Approval: While it’s not a guarantee of funding, getting pre-approved for a home loan helps you understand your borrowing capacity and can help you negotiate from a stronger position as a buyer.
3. Search for Your Home: If you started with the numbers, instead of falling in love with your potential future home first, this is when you start looking for properties that fit your needs, wants, and budget.
4. Make an Offer: When you find the perfect home, you’re ready to make an offer. If accepted, you’ll enter a contract and pay a deposit.
5. Finalise Financing: Formalise your loan by submitting the necessary documents to your lender.
6. Settlement: After final approval, settlement day is when ownership is legally transferred to you. Congratulations—you’re a homeowner!

If you require help at any part of the process, don’t hesitate to reach out to knowledgeable professionals in the industry, like the LiveInvest Financial Solutions team.

How To Apply for Your First Mortgage

Applying for a mortgage involves several steps. While mortgage brokers can help you with most of them, if you’d like to know what the process looks like, the steps are detailed below.

Steps to Apply for a Mortgage:

1. Understand Your Mortgage Options: The research step— this is when you compare lenders and interest rates available to you, as well as repayments, to find the best new home financing options for your needs.
2. Save for a Deposit: If you didn’t start beforehand, this is the perfect moment to save for a deposit that is at least 5% to 20% of the property’s value as a deposit. Most lenders will require a percentage along this range.
3. Gather Documentation: Prepare proof of income, expenses, and identification documents.
4. Submit Your Application: Work with your lender or mortgage broker to complete and submit your application.

First-Time Homebuyer Assistance Schemes

The Australian government recognises buying a home for the first time can be a financially draining process. The good thing is there are several first-homebuyer assistance schemes to make the process more accessible.

First-Time Homebuyer Schemes in Australia:

• First Home Owner Grant (FHOG): A one-time payment for eligible buyers purchasing their first home.
• First Home Guarantee (FHBG): This scheme allows first-time homebuyers to purchase a property with as little as a 5% deposit.
• Regional First Home Buyer Guarantee (RFHBG): This supports eligible regional homebuyers to purchase their first home (in a regional area) with as little as a 5% deposit.
• Family Home Guarantee (FHG): Helps eligible single parents and single legal guardians buy a home with a reduced deposit amount, usually starting at 2%.
• Stamp Duty Concessions: Some states and territories offer reduced or waived stamp duty for first-time buyers.

Consider taking advantage of these government assistance schemes when looking to purchase your first home. You might have an easier time going through the process, and spend less of your allotted budget on your purchase.

How a Mortgage Broker Can Help

Are you unsure of taking on the mortgage process by yourself? A mortgage broker like LiveInvest Financial Solutions will be happy to help you navigate the world of mortgage options for first-time buyers.

Benefits of Working with a Mortgage Broker

1. Personalised Advice: Mortgage brokers can recommend suitable home loan options after assessing your financial situation and future goals.
2. Access to Lenders: Brokers can give you access to a wider range of home loan support options thanks to their connections with multiple lenders.
3. Save Time: You will probably save a lot of time when working with a mortgage broker. They handle much of the loan research and comparison, paperwork, and term negotiations.
4. Expertise: Brokers can help you figure out first homebuyer assistance programs, and complex paperwork, and help you take advantage of any other benefits you might miss otherwise.

Conclusion

Buying your first home doesn’t have to be a daunting process. With the right support and guidance from a mortgage broker, you could move into your dream home without so much as a single headache. From helping you access a wide range of loan options to making the most of government schemes, you’ll be able to make decisions with the utmost confidence.

If you’re ready to buy your first home and seeking expert guidance, contact the LiveInvest Financial Solutions team! Find out more about our home loan support for first-time buyers by booking a free consultation today.