The rewarding path to owning your first home in the ACT

Why home ownership matters for your future

As an ACT Government employee, you've probably heard colleagues talk about buying property, refinancing, or investment opportunities. But when you're renting, it can feel like home ownership is out of reach. The reality is that owning your first home brings tangible benefits that go well beyond just having a place to call your own.

Let's explore what home ownership can offer you and how you can make it happen sooner than you might think.

Building wealth while you live

One of the most significant advantages of home ownership is building equity over time. Every mortgage repayment you make increases your share of ownership in your property. Unlike rent payments that disappear each fortnight, your mortgage repayments are essentially saving money for your future.

With property values in Canberra historically showing growth over the long term, your home can become a substantial asset. This equity can later help you:

• Purchase an investment property
• Upgrade to a larger home
• Access funds for renovations or other major expenses
• Provide financial security for retirement

Control over your living space

When you own your home, you're in charge. Want to paint the walls? Go ahead. Thinking about renovating the kitchen or adding a deck? It's your decision. This freedom to personalise your space creates a true sense of home that renting simply can't match.

You're also protected from unexpected rent increases or being asked to move out when a lease ends. This stability is particularly valuable for ACT Government employees who plan to build their careers in Canberra long-term.

Understanding first home buyer eligibility

Before you start house hunting, it's helpful to know whether you qualify as a first home buyer. Generally, you're considered a first home buyer if you've never owned property before or haven't owned property in the last three years. This status opens doors to various schemes and concessions designed to help you get into the market.

Financial incentives available to you

As a first home buyer in the ACT, you can access several schemes that reduce the upfront costs:

First home buyer stamp duty concessions: The ACT Government offers duty concessions for eligible first home buyers purchasing properties under certain price thresholds. This can save you thousands of dollars at settlement.

First home owner grants (FHOG): While grant amounts and eligibility criteria change, these grants provide direct financial assistance when purchasing or building a new home.

First Home Loan Deposit Scheme: This federal government initiative allows eligible first home buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). As an ACT Government employee, you may find this particularly accessible.

Regional First Home Buyer Guarantee: If you're considering purchasing outside major cities, this scheme offers similar benefits to the standard deposit scheme but with potentially broader eligibility.

Low deposit options that suit public servants

One of the biggest hurdles for first home buyers is saving a deposit. Traditionally, lenders prefer a 20% deposit to avoid LMI charges. However, several low deposit options exist specifically for public servants like yourself:

• 5% deposit options: Through various schemes and lender policies, you may purchase with just 5% saved
• 10% deposit options: Many lenders offer home loans with a 10% deposit, and some provide LMI waivers for ACT Government employees
• Gift deposit: Some lenders accept genuine gifts from family members to help you reach your deposit amount

Public Home Loans specialises in finding home loan options tailored to your employment status, often with interest rate discounts and reduced fees.

Tax advantages through the First Home Super Saver Scheme

The First Home Super Saver Scheme allows you to save for your deposit inside your superannuation fund, where your savings benefit from the concessional tax treatment of super. You can contribute up to $15,000 per financial year (up to a total of $50,000) and then withdraw these contributions plus earnings when you're ready to buy your first home.

This can accelerate your savings timeline considerably compared to a standard savings account.

Creating your first home buyer budget

Before you apply for a home loan, understanding what you can afford is crucial. Your budget should account for:

1. Your deposit amount
2. Stamp duty and government charges
3. Conveyancing and legal fees
4. Building and pest inspections
5. Moving costs
6. Ongoing costs like rates, insurance, and maintenance

Don't forget to factor in your mortgage repayments. Use online calculators to estimate repayments at different interest rates. Consider both variable interest rate and fixed interest rate options - each has advantages depending on your circumstances.

Features that add value to your home loan

When comparing home loan options, look beyond the interest rate. Features that can save you money or provide flexibility include:

• Offset account: Links to your home loan and reduces the interest you pay based on your account balance
• Redraw facility: Allows you to access extra repayments you've made if needed
• Interest rate discounts: Many lenders offer special rates for public servants
• No ongoing fees: Can save hundreds of dollars annually

As a specialist mortgage broker for public service employees, Public Home Loans has access to products specifically designed for your profession, often with benefits not available to the general public.

Your first home buyer checklist

Ready to take action? Here's what you need to do:

1. Review your finances and determine your savings capacity
2. Check your credit score and address any issues
3. Research suburbs and property types within your budget
4. Gather documents for your first home loan application (payslips, tax returns, bank statements)
5. Get pre-approval to understand your borrowing capacity
6. Start attending open homes
7. Engage a conveyancer before making an offer
8. Submit your formal home loan application once you've found your property

Why pre-approval matters

Getting pre-approval before you start seriously house hunting gives you confidence about your budget and shows sellers you're a serious buyer. In Canberra's property market, this can make the difference when competing for your ideal home.

Pre-approval typically lasts 90 days and doesn't commit you to a lender, giving you time to find the right property without pressure.

Taking the next step

Buying your first home represents a significant milestone and a sound financial decision. The combination of first home buyer grants, stamp duty concessions, low deposit options, and employment-specific benefits available to ACT Government employees makes now an excellent time to explore your options.

The team at Public Home Loans understands the specific circumstances of public servants and can guide you through every stage of the home loan application process. From explaining the First Home Loan Deposit Scheme to finding lenders who offer the most favourable terms for your profession, we're here to help.

Call one of our team or book an appointment at a time that works for you. Let's have a conversation about your situation and show you what's possible when you have the right support behind you.