Ask yourself: Where's my dream neighbourhood?
First things first - check out the property prices in your dream neighbourhood. This will help you understand how much you might need to spend on your first home. Another thing to consider is how much money you'll need to save for a deposit.
The deposit amount will depend on the property price. Ideally, if you can cover 20% of the purchase price, you'll avoid having to pay Lender's Mortgage Insurance (LMI).
First home buyer dictionary
Scratching your head when it comes to home buying jargon? You’re not alone. To ease the pain, we’ve helped define common housing related terms and have listed them from A to Z.
Consider how much you can afford to borrow and calculate your possible repayments
Your income
Home loan repayments should be less than 30% of your after-tax salary.
Your savings history
Your credit history
Your deposit
A deposit of 20% plus fees (conveyancer, stamp duty, building inspection, etc) is recommended, however you may have the option to consider Lenders' Mortgage Insurance (LMI) if your deposit is less than the recommended amount.
Prepare with a savings budget
Write up a budget for your savings
This will show you how much you can afford to save and give you a feel for dealing with home loan repayments later on.
Now make the most of your savings and store them in a high interest savings account with no monthly fees.
Have you been saving for a deposit for three to six months? Let's get your pre-approval ready!
Consider additional costs
There are a few extra costs first home buyers need to prepare for, such as stamp duty. We have a calculator that can help you understand the cost of stamp duty.
Other upfront costs may include legal costs, taxes and other fees depending on the state you buy in. Speak to a Home Loan Adviser for more information.
Almost done: Get a pre-approval
Contact a Home Loan Adviser
A People First Bank Home Loan Adviser can tell you the conditions for pre-approval and which home loan suits you best.
Our experts will also discuss first home buyer grants and stamp duty concessions available in your state or territory and check your eligibility.
Overview of our fixed and variable rates
We have a range of home loan options available to you for your first home.
FAQs
Need some help? We've got you covered.
Get in touch with us and we can help you get the answers you need.
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