Ask yourself: Where's my dream neighbourhood?
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).
People's Choice of Housing Report - Adelaide
People's Choice of Housing Report - Melbourne
First home buyer dictionary
Consider how much you can afford to borrow and calculate your possible repayments
Some factors we look at to determine how much we can lend you are:
Home loan repayments should be less than 30% of your after-tax salary.
Tip: Use our income tax calculator to calculate your net income.
Your savings history
Show a strong savings history. Save for a deposit for at least three to six months.
Your credit history
Pay off any existing debt as soon as possible.
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.What is Lenders' Mortgage Insurance?
First Home Guarantee
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
Pre-approval means getting the approval and paperwork for a home loan out of the way, so that you're ready to shop for your first home. Showing a home loan pre-approval when placing an offer on your dream home can put you in front of other potential buyers.
Plus, having a pre-approval provides you with the certainty of how much you can borrow and can keep you from looking at properties outside your price range.
Contact a Home Loan Adviser
A People's Choice 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.
Ready? Let’s apply for your pre-approval.
You'll receive a response from us within 48 hours.
Most popular questions
- You can check your potential eligibility on the NHFIC website.
- The Australian Government has introduced the First Home Guarantee (FHBG) to assist eligible first home buyers to purchase a home sooner. It does this by providing a guarantee to participating lenders that will allow eligible first home buyers to purchase a home with a deposit of as little as 5%, and the additional benefit of not having to save for Lenders Mortgage Insurance (LMI).
- The First Home Guarantee (FHBG) is an Australian Government initiative to support eligible first home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5% (lender's criteria apply).
- To ensure the FHBG is only available for the purchase of a modest home, property price thresholds apply in capital cities, large regional centres and regional areas. You can find them here.
- No. The First Home Guarantee (FHBG) allows first home buyers with deposits as low as 5% to get a home loan without paying Lenders Mortgage Insurance (LMI) fees.
- The cost of LMI generally depends on the borrower's LVR (Loan to Value Ratio) and amount of money they need to borrow. The cost can vary depending on the lender. For more information on LMI when taking out a Home Loan at People’s Choice please speak to one of our Home Loan Advisers or call 13 11 82.
- LMI is a once-off payment made by the borrower at the time of loan settlement, which protects the lender should the borrower no longer be able to meet their loan repayments.
- To avoid Lenders' Mortgage Insurance it is generally recommended the borrower keep their LVR (Loan to Value Ratio) below >80% plus any fees (conveyancer, stamp duty, building inspection, etc). If the borrower has a deposit of 20% or more of the property value, then they may not be required to pay LMI. For more information on whether you’ll need LMI please speak to one of our Home Loan Advisers or call 13 11 82.
- LMI may be required if the borrower doesn't have a minimum of 20% deposit to take out a home loan.