There is a lot going on in the world right now and Australia is no exception. COVID-19 has shaken even the most grounded financial and property advisors, so it’s understandably a scary time to get into the property market as a first time home buyer. 

You hear the word ‘unprecedented’ thrown around a lot. It’s true that there are a lot of unprecedented challenges in the face of this pandemic, however, it’s also true that there are unprecedented advantages during this time – especially from the lens of a first time home buyer in Australia.

So… Is now a good time for first home buyers to get into the market?

There are two things you’ll want to ask yourself before you enter into this discussion with yourself or your partner. One: Do you have financial stability? You should have at least three to six months worth of savings should your area go back into lockdown and you’re unable to work. And two: Is your job secure during this pandemic? Some industries, like airlines, have been negatively impacted. But other industries, like tech, are mostly flourishing. If your answer to one or both of these questions is yes, then read on for why it could be a great time to get into the property market for first home buyers.

Low Interest Rates

It has never been cheaper to borrow money in order to pay off your mortgage. Low interest rates equal lower home repayments. This means that you could save tons of money over the course of your loan – in some cases, even hundreds of thousands of dollars. If you were already in the process of starting to think about buying a home for the first time, the pandemic has made interest rates even more appealing to first time home buyers.

Please keep in mind that when it comes to choosing your first time home loan, there are additional considerations you should be aware of outside of low interest rates. This is why it is advised that first time home buyers seek expert advice to ensure they maximise savings

It’s a Buyer’s Market

Buyers may have a better chance of negotiating a lower price than they would normally see for the home of their choice and rental prices are at an all time low so many people may be looking to shed investment properties. Because of this, there are some major deals to be had all over Australia.

Keep in mind that house viewings are still continuing, though some may have restrictions on the number of people. Make sure to stay on top of the latest COVID-19 restrictions for your state by visiting health.gov.au.

It’s also important to keep in mind that because of COVID-19, many lenders have strengthened their lending criteria. Each lender will have a different approach to assessing your loan application, so LiveInvest is a great resource for you to speak with a professional who is aware of the ebbs and flows of the current market or to organise a home loan pre-approval for you.

The Government’s 2020 First Home Loan Deposit Scheme

Buying a first home is a huge step. Saving for a house deposit is usually the most daunting part as most lenders require a 20% deposit, but that just got easier because of the First Home Loan Deposit Scheme.

The First Home Loan Deposit Scheme allows first home buyers to pay a deposit as little as 5% while avoiding lenders mortgage insurance (LMI) to help them buy their first home sooner. Read more for further information including eligibility criteria.

Don’t qualify for the scheme? Check out the First Home Owner Grant.

First Home Owner Grants or ‘FHOG’ is a program that the government introduced a little over 20 years ago in order to offset the cost of GST on first time home buyer’s homes. In short, the FHOG is a scheme that’s meant to make the cost of homeownership more affordable to Australians that are first time home buyers. 

Use our mortgage affordability calculator to figure out what your loan repayment might look like.

Why do first time home buyers choose LiveInvest?

• Fast Approvals: It’s always a competitive market when you’re a first time home buyer and time is one of the most important factors in your home success. We get results as quickly as possible. With relationships with all major lenders, we’re able to fast track your loan and streamline the application process so that your loan can get approved fast.
• Convenience: You’re busy! And you work hard. Your time is valuable and LiveInvest ensures that you don’t spend time waiting at the bank to lodge your application. We’re also available to answer all your questions at a moment’s notice. And best of all – our brokers come to you! 
• Range: We offer a range of products that will suit the needs for every first time home buyer. Give us a heads up if there are certain details we need to be aware of to fit your situation and we’ll find an affordable solution for you!
• Relationship: Unlike your average broker, our first time home buyer service goes beyond the approval of your loan. We provide ongoing support to ensure that you continue to have access to the best finance solutions on the market! We’re always here to answer your burning questions.
• Network: We partner with the best local professionals and businesses no matter where you’re located!