1. Read up on deposit rules
If you’re a potential first home buyer, it’s time to get geeky on rules around home loan deposits. Most first home buyers expect to have to save 20% of what they are going to borrow, and with the house market where it currently is, that’s a lot of dough! If you do your research, you can likely find a lender that will allow for a 5% deposit. That cuts your saving time by 3 quarters!
2. Get eligible for the first home owners grant
Ok, easier said than done. If you’re rolling your eyes and thinking ‘we aren’t all rich’ then we do apologise, but hear us out. While it will mean buying new (and needing a bit more cash), this is the one and only time you can be eligible. Once you pass it up and buy an older place, you won’t ever have this option again. And $15,000 is a pretty big chunk off your deposit (if you’re in QLD)! So, do whatever you can to buy new for your first home – partner up, save a little longer, whatever it is.
3. Check out what special offers are available
Particularly if you are buying new, have a google and take a look at what your local ‘house and land package’ guys are offering. You might find you can score a good deal. If you are in QLD, that could be us! We are currently matching the first home owners grant by offering all eligible first home buyers $15,000 towards a deposit. When you add that to the government grant, that means $30,000 towards a deposit! That’s gotta make it quite a bit easier to buy new. You’re feeling bad for rolling your eyes at our second tip now, aren’t you? it’s ok, we forgive you… (but we will love you even more if you apply here).
4. Ask a family member (very nicely) if they will be a guarantor
Still not satisfied with those options hey? Geez, ok. How about getting a guarantor? What that basically means is, that if someone in your family owns property, they can offer part of their home as a sort of ‘insurance’ to the lender that they will make up the remainder of your deposit if you were to default on your loan. This way you don’t need to save up the whole deposit. Keep I mind this can be a big ask, so have fun with that awkward convo. (Not biased, but our previous solution is better).
5. Two heads (or bank accounts) are better than one
If all of the above wasn’t quite the ‘get rich quick scheme’ you were hoping for, there is another potential option. If you don’t think you can get finance on your own, maybe you could go halves with a partner or family member? Two incomes make your chances a whole a lot better. Even if you’re a single pringle, it can’t hurt to ask a sibling or close friend, can it? Keep in mind, to get the First Home Buyers Grant you will both have to be a first-time home buyer.
Ready to dive into the property market?
First Home Hero helps First Home Buyers get into the property market. If you would like to have a chat with one of our specialist about what we have on offer, get in contact with us here.