Buying your first home is one of the biggest financial decisions you'll make, and as a Department of Home Affairs employee, you have unique opportunities to make this dream a reality. Understanding effective property hunting techniques combined with the right home finance strategy can put you ahead in the property market.
Understanding Your Financial Position
Before you start browsing properties online or attending open houses, it's crucial to understand your financial situation. Your borrowing capacity depends on several factors including your income, expenses, and existing debts. As a public service employee, you typically have stable employment, which lenders view favourably.
Consider these key financial elements:
• Your loan to value ratio (LVR) - this determines how much you can borrow against the property value
• Lenders mortgage insurance (LMI) requirements if you're borrowing more than 80% of the property value
• Available funds for stamp duty and other purchasing costs
• Your preferred loan amount and repayment structure
Government Support for First Time Buyers
As a first time home buyer, you have access to several government schemes designed to help you enter the property market sooner. The Home Guarantee Scheme allows eligible buyers to purchase with a deposit as low as 5%, without paying LMI. Additionally, first home owner grants (FHOG) and various first time home buyer schemes can provide financial assistance.
These first time home buyer programs offer significant benefits, but eligibility criteria and packages vary by state. It's worth exploring all available options to maximise your purchasing power.
Property Hunting Strategies That Work
Successful property hunting requires a systematic approach. Start by defining your must-haves versus nice-to-haves. Consider factors like proximity to work, public transport, schools, and local amenities.
Research Techniques:
- Use multiple property websites to compare listings
- Attend open houses in your target areas on weekends
- Drive through neighbourhoods at different times to get a feel for the area
- Check recent sales data to understand market trends
- Consider properties that have been on the market for a while - there may be room for negotiation
Inspection Tips:
When viewing properties, look beyond the styling and focus on structural elements, natural light, and potential maintenance issues. Take notes and photos to help you remember each property, especially when viewing multiple homes.
Getting Your Finance Right
Once you've identified your target price range, it's time to secure your home finance. Getting pre-approved for a home loan gives you confidence when making offers and shows sellers you're a serious buyer.
A Home Finance & Mortgage Broker can help you access Home Loan options from banks and lenders across Australia. This is particularly valuable because different lenders offer varying interest rate discounts and loan features.
Key considerations for your first Home Loan:
• Variable interest rate versus fixed interest rate options
• The benefits of an offset account to reduce interest payments
• Investment loan options if you're considering an investment property later
• Access to banks and lenders nationwide for the most suitable loan
Mortgage Brokers can streamline the application process by handling paperwork and liaising with lenders on your behalf. They'll need documents like bank statements and payslips to assess your borrowing capacity.
Making Strategic Offers
When you find the right property, having your finance pre-arranged allows you to act quickly. In a busy property market, sellers often prefer buyers who can demonstrate their financial readiness.
Consider these offer strategies:
• Research comparable sales to make informed offers
• Be prepared to negotiate on price and settlement terms
• Include appropriate conditions like building and pest inspections
• Have your solicitor or conveyancer ready to handle the legal aspects
Planning for Additional Costs
Beyond the purchase price and your deposit, factor in additional costs such as:
• Stamp duty (varies by state and property value)
• Legal fees and conveyancing
• Building and pest inspection costs
• Moving expenses and immediate property improvements
These costs can add up to several thousand dollars, so include them in your budget planning.
Working with Property Professionals
Building relationships with local real estate agents can give you early access to new listings. Similarly, working with experienced Mortgage Brokers ensures you're aware of the latest loan products and interest rate changes.
For public service employees, some lenders offer special packages with additional benefits or discounted rates. A mortgage broker with experience in this sector can identify these opportunities.
Applying for a home loan doesn't have to be overwhelming when you have the right support. Whether you're looking at your first investment property or your family home, professional guidance can make the process smoother and potentially save you money.
Take your time with property hunting, but be ready to act when you find the right home. With proper preparation and the right finance structure, you'll be well-positioned to secure your first property.
Call one of our team or book an appointment at a time that works for you to discuss your home loan options and start your property journey today.
