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Buy My First Home

Buy My First Home

Buying your first home is an exciting milestone, but it can also feel overwhelming with all the options and steps involved. At Sanford Finance, we’re here to make the process as smooth and straightforward as possible, guiding you every step of the way. 

Deposit Requirements

One of the first hurdles many first-time buyers face is saving for a deposit. Typically, lenders require a deposit of at least 5% to 20% of the property’s purchase price. However, having a larger deposit can open the door to more competitive interest rates and lower monthly repayments. 

If saving a substantial deposit feels challenging, don’t worry—there are various options available to help you get into your first home sooner: 

  • Low Deposit Home Loans: Some lenders offer low deposit home loans, allowing you to buy with as little as 5% deposit. These loans might require you to pay Lenders Mortgage Insurance (LMI), but they can be a great way to enter the market with less upfront savings. 
  • Guarantor Loans: If you have a family member willing to act as a guarantor, you might be able to borrow up to 100% of the property value without a deposit, avoiding LMI altogether. 

First Home Owner Grants and Schemes 

The Australian Government and state governments offer several grants and schemes to help first-time buyers enter the property market: 

  • First Home Owner Grant (FHOG): This is a one-off grant available to eligible first-time home buyers who are purchasing or building a new home. The amount of the grant varies by state and territory, but it can provide a significant boost to your deposit. 
  • First Home Guarantee: This nationwide program allows eligible first-home buyers to purchase a property with a deposit as low as 5%, without having to pay Lenders Mortgage Insurance. For the 2023-2024 financial year, 35,000 places are available under this scheme. To qualify, you must be an Australian citizen or permanent resident, and your annual income must not exceed $125,000 for singles or $200,000 for couples. 
  • First Home Super Saver Scheme (FHSSS): This scheme allows you to save money for your first home inside your superannuation fund, taking advantage of the tax benefits. You can contribute up to $15,000 per year, and withdraw up to $50,000 (or $100,000 for couples) to put towards your deposit. 

State-Based Schemes: Each state and territory offers additional incentives, such as stamp duty concessions or shared equity schemes. For example: 

    • Victorian Homebuyer Fund: The Victorian Government can contribute up to 25% of the purchase price for eligible buyers, allowing you to buy with a smaller deposit.
    • Queensland Pathways Shared Equity Loan: This offers a way for first-time buyers to enter the market with a lower deposit and reduce their mortgage payments.
    • South Australia HomeStart Finance Shared Equity Option: This scheme helps lower-income earners and first-time buyers purchase a home with a smaller deposit by sharing the equity with HomeStart Finance.
    • Western Australia Shared Home Ownership: This program allows first-time buyers to co-own a property with the state government, reducing the deposit required and monthly repayments.
    • Tasmania MyHome Shared Equity Scheme: Under this scheme, the Tasmanian Government contributes towards your home purchase, lowering the deposit and mortgage payments.
    • ACT Shared Equity Scheme: Similar to other state schemes, the ACT Government shares equity in the property to make home ownership more affordable for first-time buyers.

How We Can Help 

At Sanford Finance, we specialise in helping first-time home buyers navigate these options and find the best solution for their unique circumstances. We’ll assess your situation, help you understand the various grants and schemes available, and assist you in securing a loan that meets your needs. 

Our team will be with you every step of the way—from understanding your borrowing capacity to finding the right property, securing your home loan, and finalising the purchase. We’re committed to making your journey to home ownership as smooth and stress-free as possible. 

Ready to take the first step toward buying your first home? Contact us today to schedule a consultation with one of our experienced mortgage brokers. Let’s make your dream of home ownership a reality! 

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