What not to expect when buying your first home

Buying your first home is one of the most significant financial decisions you'll make as a Tasmanian Government employee. While the excitement of homeownership drives many first-time buyers forward, understanding what to expect—and what not to expect—can save you from costly surprises and disappointment.

The deposit hurdle isn't always 20%

Many first-time buyers believe they need a 20% deposit to buy their first home, but this isn't necessarily the case. While a 20% deposit helps you avoid lenders mortgage insurance (LMI), various programs exist to help you enter the property market sooner.

The Home Guarantee Scheme allows eligible first-time buyers to purchase with as little as 5% down. As a Tasmanian Government employee, you might also qualify for:

• First home owner grants (FHOG) worth up to $20,000 for new homes
• Stamp duty concessions or exemptions
• Interest rate discounts through specialist first time home buyer programs
• Access to no LMI loans designed for public servants

Your borrowing capacity might surprise you

Don't assume you know your loan amount without professional assessment. Borrowing capacity depends on multiple factors beyond your salary, including your financial situation, existing debts, living expenses, and the loan to value ratio (LVR) of your chosen property.

As a public servant, you have access to specialist packages that aren't available to the general public. Some lenders offer enhanced borrowing capacity for government employees, recognising the job security that comes with public sector employment.

Interest rates aren't one-size-fits-all

First-time buyers often focus solely on advertised interest rates without understanding that your actual rate depends on your circumstances. Both variable interest rate and fixed interest rate options come with different benefits:

• Variable rates typically start lower and include features like offset accounts
• Fixed rates provide payment certainty but may limit features
• Split loans allow you to combine both options

Government employees often qualify for additional interest rate discounts that aren't advertised publicly. When you access home loan options from banks and lenders across Australia through a specialist broker, you'll discover rates and features unavailable through direct applications.

The application process takes time

Expecting to apply for a home loan and receive approval overnight sets you up for frustration. The application process typically involves:

1. Gathering documents including bank statements, payslips, and tax returns
2. Completing detailed application forms
3. Property valuation and assessment
4. Final approval and documentation

However, getting loan pre-approval can streamline your property search. Getting loan pre-approval provides clarity on your budget and demonstrates serious intent to sellers.

Government employee benefits extend beyond basic loans

As a Tasmanian Government employee, you shouldn't expect to be treated like every other borrower. Specialist lenders recognise the stability of public sector employment and offer:

• Waived or reduced LMI
• Higher LVR lending (up to 95% in some cases)
• Access to banks and lenders nationwide through specialist programs
• Streamlined application processes

Property market timing isn't everything

Waiting for the "perfect" market conditions often means missing opportunities. Instead of trying to time the property market, focus on:

• Your personal financial readiness
• Long-term affordability of repayments
• Properties that meet your needs rather than investment potential
• Government schemes and grants currently available

For public servants considering their housing options, remember that buying your first home doesn't preclude future investment opportunities. Many clients later explore buying their first investment property using their home's equity.

First-time buyer schemes have eligibility requirements

Don't assume you automatically qualify for first time home buyer schemes without checking the criteria. Most programs require:

• First-time buyer status (not owning property previously)
• Income limits that vary by location
• Property price caps
• Intention to occupy as your primary residence

Some schemes also restrict the type of property you can purchase or require you to remain in the home for a minimum period.

Professional guidance makes a difference

Expecting to handle the entire process alone often leads to missed opportunities and suboptimal outcomes. Working with mortgage brokers who specialise in public sector lending ensures you access all available benefits and programs.

Our team understands the unique position of government employees and can help you access home loan options that align with your circumstances and career trajectory.

Buying your first home as a Tasmanian Government employee comes with unique advantages, but also specific considerations. Understanding what to expect—and what not to expect—positions you for success in your homeownership journey.

Call one of our team or book an appointment at a time that works for you to discuss your first home loan options.