Understanding Your Options as a First Time Home Buyer
Buying your first home as an ACT Government employee comes with unique advantages. You have access to specialised first time home buyer programs and schemes that many private sector workers don't know about. Working with a Home Finance & Mortgage Broker who understands the public service industry can make all the difference in your property journey.
Public Home Loans specialises in helping ACT Government employees access Home Loan options from banks and lenders across Australia. We understand your employment structure, salary packaging arrangements, and the specific benefits available to public servants.
First Time Home Buyer Schemes Available to You
Several government schemes can help reduce the financial burden of buying a home:
• Home Guarantee Scheme: This allows eligible first home buyers to purchase with as little as 5% deposit, avoiding lenders mortgage insurance (LMI)
• First Home Owner Grants (FHOG): Direct financial assistance for purchasing or building your first home
• Stamp duty concessions: Many states offer reduced or waived stamp duty for first home buyers
• Shared equity schemes: Some programs allow government co-investment in your property
As an ACT employee, you may qualify for additional territory-specific first time home buyer schemes that complement these federal programs.
Working Out Your Borrowing Capacity
Your financial situation as a public servant often provides stability that lenders value. When applying for a home loan, several factors determine your borrowing capacity:
• Your regular salary and any salary packaging benefits
• Existing debts and monthly expenses
• The loan amount you're seeking
• Your chosen loan to value ratio (LVR)
• Current interest rate environment
Mortgage Brokers with public service experience understand how to present your income in the most favourable light, including salary packaging components that some lenders might overlook.
Choosing Between Variable and Fixed Interest Rates
The interest rate you select impacts your repayments significantly. Here's what to consider:
Variable Interest Rate:
• Rates can go up or down with market conditions
• Often start lower than fixed rates
• Usually offer more flexibility with extra repayments
• May include offset account options
Fixed Interest Rate:
• Locked rate for a set period (typically 1-5 years)
• Provides payment certainty
• Protection against rate rises
• May have restrictions on extra repayments
Many first home buyers choose a split loan, combining both variable and fixed portions.
The Application Process Made Clear
The application process involves several steps, but preparation makes it smoother:
- Get pre-approved: This gives you a clear budget and shows sellers you're serious
- Gather documentation: Including bank statements, payslips, and employment verification
- Property valuation: Once you find a home, the lender arranges valuation
- Final approval: After all conditions are met
- Settlement: When ownership transfers to you
Having access to banks and lenders nationwide through experienced Mortgage Brokers means you're not limited to one institution's products or timeline.
Maximising Your Benefits and Packages
ACT Government employees often receive benefits that can help with home buying:
• Salary packaging arrangements that may improve your borrowing position
• Stable employment history valued by lenders
• Potential access to employee-specific loan packages
• Interest rate discounts through employer arrangements
Some lenders offer special packages for public servants, including reduced fees or preferential rates.
Understanding Lenders Mortgage Insurance
Traditionally, borrowing more than 80% of a property's value requires lenders mortgage insurance (LMI). However, first time home buyer programs like the Home Guarantee Scheme can help you avoid this cost while still buying with a smaller deposit.
LMI protects the lender, not you, so avoiding it saves thousands of dollars. Your mortgage broker can explain which options help you avoid or reduce LMI costs.
Investment Loan Options for the Future
While your focus is on your first home, it's worth understanding investment loan options for future property purchases. Many ACT employees later consider investment properties, and the application process differs from owner-occupier loans.
Investment loan applications typically require:
• Higher deposits (usually 20% minimum)
• Different interest rates
• Separate assessment criteria
• Different tax implications
Building a relationship with Mortgage Brokers now can help when you're ready for your first investment property.
Making Property Market Conditions Work for You
Property market conditions change constantly, but as a first home buyer, you have advantages regardless of market state:
• Access to first time buyer schemes in any market
• Ability to take time finding the right property
• No existing property to sell before buying
• Potential to benefit from any first home buyer incentives
Your mortgage broker monitors market conditions and can advise when it's an opportune time to buy.
Your Next Steps
Buying your first home as an ACT Government employee puts you in a strong position. You have employment stability, access to specific schemes, and potential benefits that many buyers don't have.
Working with specialists who understand the public service industry ensures you access all available programs and present your application in the optimal way. From getting pre-approved to understanding offset account benefits, professional guidance helps you make informed decisions.
The streamlined application process available through experienced brokers means you can focus on finding your perfect home while they handle the complex financial arrangements.
Ready to start your home buying journey? Call one of our team or book an appointment at a time that works for you to discuss your specific situation and explore all available options.
