With property prices softening in some areas and recent housing measures from the Federal Government helping to reduce investor competition, conditions may be becoming more favourable for first-home buyers. In some markets, this could mean greater choice, less competition and more opportunities to negotiate than we’ve seen in recent years.
While buying your first home is an exciting milestone, it can also feel overwhelming when property prices, interest rates and lending requirements continue to evolve. The start of a new financial year is the perfect time to reset, get organised and explore the support available to help you take the next step.
Here are five practical tips to help you on your homeownership journey this financial year.
Before you begin attending inspections or scrolling through property listings, it’s worth reviewing your financial position.
When assessing a home loan application, lenders consider more than just your income. They’ll also examine your spending habits to understand how you manage your money on a day-to-day basis.
Take some time to review your bank statements and identify any subscriptions, memberships, or regular expenses that could be reduced or removed. Small improvements made consistently over several months can strengthen your application and demonstrate responsible financial management.
A clear budget can help you better understand where your money is going and how much you may be able to save toward a deposit.
Start by listing your after-tax income and separating your expenses into essentials, such as rent, groceries, utilities, and insurance, and discretionary spending, including dining out, entertainment and hobbies.
A popular budgeting approach is the 50/30/20 rule:
Many people also find it helpful to use separate bank accounts for each category, making it easier to track spending and stay on target.
Your credit history plays an important role in the home loan approval process, so it’s worth reviewing your credit report before applying for finance.
Under the Privacy Act 1988, you can access a free credit report every three months from each of Australia’s major credit reporting agencies: Equifax, Experian, and illion.
Your report will typically include:
Each agency also provides a credit score using its own scoring system, which means your score may differ between providers.
If you notice any inaccuracies or outdated information, contact the relevant credit reporting agency and request a review. Correcting errors before applying for finance can help avoid unnecessary complications.
There are several government initiatives designed to help eligible first-home buyers enter the property market. Understanding what’s available could make a significant difference to your purchasing power.
The Australian Government’s 5% Deposit Scheme allows eligible buyers to purchase a property with as little as a 5% deposit while avoiding Lenders Mortgage Insurance (LMI). The scheme currently has no income caps, place limits, or waiting lists.
Another option is the Help to Buy Scheme, a shared equity program where the government contributes up to 40% toward a new home or up to 30% toward an existing home. Eligible buyers can purchase with a deposit as low as 2% and avoid paying LMI. The scheme offers 10,000 places each year.
The First Home Super Saver Scheme may also assist buyers by allowing voluntary superannuation contributions, up to $50,000, to be used toward a home deposit while benefiting from concessional tax treatment.
Depending on your location and circumstances, you may also qualify for the First Home Owner Grant or stamp duty concessions and exemptions.
Understanding your borrowing capacity before you begin searching for a property can save significant time and help you focus on homes within your budget.
Meeting with a Mortgage Broker early in the process allows you to gain a clear picture of your borrowing power and the costs involved in purchasing a property, including stamp duty, legal fees, and building and pest inspections.
We can help you explore your options, compare lenders and arrange pre-approval so you’re ready to act when the right property comes along.
Make This the Year You Buy Your First Home
Buying your first home is a major milestone and with the right preparation and support, it may be more achievable than you think.
If you’re considering entering the market this financial year, reach out to a 1st Street Mortgage Broker to discuss your options and create a plan to help turn your homeownership goals into reality.
When renting out an investment property, you have the option to either manage it yourself…
You’ve found your dream property, had your offer accepted, finance approved, and now there’s just…
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1st Street’s premium service comes at no cost to you! 1st Street is paid by the lender when your loan settles, however, this will not affect your interest rate or loan fees! It is often more cost-effective for a mortgage broker to process a loan rather than the lenders processing it themselves in-house. In fact, we often find that we can save you money by negotiating on your behalf.
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