Buying Your First Home: First Time Buyer Mortgage

Setting out to buy your first home? It might seem daunting, but don’t worry! This article simplifies the mortgage maze, helping you find your perfect fit

Estimated reading time: 7 minutes



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Understanding the First Home Buyer Loan

With ScaleMortgage’s expertise, the path to homeownership is clearer and closer than you think. Let’s make your dream home a reality!

What is a First Home Buyers Mortgage?

A First Home Buyers Mortgage is a loan for people buying their first home. It has special benefits like lower interest rates, smaller down payments, and government help. It is designed to meet the needs of first-time buyers

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Navigating the Mortgage Maze: ScaleMortgage at Your Side

The cornerstone of buying your first home lies in understanding and securing a suitable mortgage. This pivotal step often brims with questions: What type of mortgage is best? How much deposit is needed? Here, we unravel the mysteries of first-time buyer mortgages and showcase how ScaleMortgage propels you towards homeownership.

What Government Schemes are Available?

The First Home Guarantee

The First Home Guarantee is a government initiative that provides a guarantee to eligible first-time buyers who are purchasing a newly built home. This guarantee allows first-time buyers to secure a home loan with a deposit as low as 5%, without the need for LMI.

The Family Home Guarantee

The Family Home Guarantee helps single parents buy a home with a low deposit (2%), without needing mortgage insurance. It aims to support single parents in achieving homeownership and creating stability for their families.

The First Home Owner Grant (FHOG)

The First Home Owner Grant (FHOG) is a single-time financial aid provided by the government to qualified first-time purchasers who are buying or constructing a new house. The grant’s value fluctuates based on the state or territory, but it can offer a substantial financial uplift for first-time buyers.

The Regional First Home Buyer Guarantee

The Regional First Home Buyer Guarantee helps first-time buyers in regional Australia. The government guarantees up to 15% of the loan amount for eligible buyers. This means they can buy a home with a smaller deposit and no need for lenders mortgage insurance.

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How Can ScaleMortgage Help?

ScaleMortgage helps first-time buyers find the right home loan. They are a top mortgage broker that specializes in assisting buyers with their mortgage needs.

Access to a Wide Range of Lenders

ScaleMortgage is a mortgage broker. They can help you find the best loan for your needs. They do this by comparing options from various lenders. These lenders include banks, credit unions, and non-bank lenders.

Expert Advice and Guidance

Our team of mortgage brokers can help you with expert advice and guidance when buying a home. We can explain the types of mortgages, eligibility for government programs, and the steps to get a home loan.

Assistance with Paperwork and Applications

Getting a mortgage can be overwhelming, especially for first-time buyers. ScaleMortgage can help with all the paperwork and applications, making the process as easy and stress-free as possible.

Negotiation with Lenders

Our team knows lenders well and can help you get a good interest rate and loan terms. This could save you a lot of money on your mortgage in the long run.

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First Time Buyer Home Loans Tips and Tricks

Save for a Deposit

One of the biggest challenges for first-time buyers is saving for a deposit. The larger your deposit, the lower your loan-to-value ratio (LVR) will be, which can result in a lower interest rate and potentially save you thousands of dollars in interest over the life of your loan. Start saving as early as possible and consider government assistance programs, such as the FHOG and First Home Guarantee, to help boost your deposit.

Improve Your Credit Score

Your credit score plays a significant role in your ability to secure a mortgage and the interest rate you will receive. Before applying for a home loan, make sure to check your credit score and take steps to improve it if necessary. This can include paying off any outstanding debts, reducing your credit card limit, and ensuring all your bills are paid on time.

Consider Government Assistance Programs

As a first-time buyer, you may be eligible for government assistance programs, such as the FHOG and First Home Guarantee. These programs can provide you with a significant financial boost and help you secure a home loan with a smaller deposit and without the need for LMI. Make sure to research the programs available in your state or territory and see if you meet the eligibility criteria.

Get Pre-Approved

Getting pre-approved for a mortgage can give you a clear understanding of your budget and help you narrow down your property search. It also shows sellers that you are a serious buyer and can give you an advantage in a competitive market. At ScaleMortgage, we can help you get pre-approved for a mortgage, so you are ready to make an offer when you find your dream home.

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What is the first time buyer loan in Australia?

The First Time Buyer Loan in Australia refers to various mortgage products and government programs designed to assist first-time home buyers. Key initiatives include the First Home Loan Deposit Scheme (FHLDS), allowing eligible buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), and the First Home Owner Grant (FHOG), which offers a one-off payment to help cover the costs of purchasing or building a new home.

Can I buy a house with a $10,000 deposit?

Yes, purchasing a house with a $10,000 deposit is possible in Australia, especially for first-time buyers leveraging government schemes like the First Home Loan Deposit Scheme. These programs are designed to help lower the entry barrier to homeownership, allowing for smaller deposits without the need for LMI. However, eligibility criteria apply, and the choice of properties may be limited based on the loan size and area.

How much deposit do I need as a first home buyer in Australia?

As a first home buyer in Australia, the minimum deposit you generally need is 5% of the purchase price, thanks to government initiatives like the First Home Loan Deposit Scheme and the First Home Owner Grant. However, saving more can reduce your borrowing costs and increase your buying options. The exact amount can also depend on the lender’s requirements and the cost of the property you aim to purchase.

Do you pay back the First Home Guarantee?

The First Home Guarantee itself does not require repayment as it is not a loan but a government guarantee to the lender on behalf of the home buyer. It allows first-time buyers to purchase a home with a lower deposit without needing LMI. However, the home buyer is responsible for repaying the mortgage obtained through the scheme, including interest and any fees, according to the loan terms with their lender.

Buying Your First Home with ScaleMortgage

Buying your first home is an exciting milestone, but it can also be a daunting process. With the right knowledge and resources, you can make your dream of homeownership a reality. At ScaleMortgage, we specialize in helping first-time buyers secure the best home loan for their needs. Contact us today to learn more about how we can help you achieve your homeownership goals.

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Thomas Makin

Thomas Makin is the Principal Mortgage Broker and Co-Founder of Scale Mortgage. He has a Diploma in Finance and Mortgage Broking Management and is accredited by the Mortgage & Finance Association of Australia (MFAA).

Thomas is known for his skill in providing tailored mortgage solutions. He helps homebuyers and investors across Australia, showing a strong commitment to professionalism and high industry standards.

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