Buying your first home can be an exciting, but sometimes overwhelming process. Regional Australia Bank has created a cheat sheet of everything you need to know.

What you need to know when buying your first home

Step One – Start Budgeting

Buying your first home starts with taking stock of your current financial situation, such as income, and future costs. This helps you work out how much deposit and monthly mortgage payments you can realistically afford.;

Take a look at Regional Australia Bank’s top five tips to help you save for a new home.

It’s also important to check your eligibility for a home loan so you know what to aim for.

How much should you be aiming to save, and what costs do you need to consider?

The deposit

You can typically borrow up to 95% of your home’s value ­– but it’s best to try and save about 20% of the value yourself

Lenders Mortgage Insurance (LMI)

If you need to borrow more than 80% you will most likely need to pay Lenders Mortgage Insurance. There are ways you could avoid lender mortgage insurance but It may require the help from a family member or friend. See Regional Australia Banks Head Start Family Guarantee for more information.

Transfer Duty

Transfer Duty (previously known as Stamp Duty) is a significant additional cost on the purchase price of your property. Transfer Duty rates vary depending on the amount of the property but as first-time buyer you’ll likely qualify for a grant or exemption, depending on which state or territory you’re in.

Legal costs

You’ll need to save for various legal costs as part of the purchase, from paying a conveyancer to legally transfer ownership of the property, to possible strata inspections and record checks.

Home, Building & Contents Insurance

Building insurance is mandatory and costs can vary depending on the type of property and the coverage you require. Regional Australia Bank have made it easy to secure a home insurance policy through our partner and insurance experts CGU.

Use Regional Australia Bank’s Borrowing Power Calculator to work out your borrowing power, repayments, and stamp duty.

Step Two – Select Your Home Loan and Know Your Entitlements

Home Loans

There are many different types of mortgages to review. Choosing the right loan for your needs is vital so make an appointment to speak with one of Regional Australia Bank’s home loan specialists today.

Our home loans are tailored to save you time, money, and effort, and include:

Grants and Schemes

Supplement your savings with grants or exemptions you are eligible for. Possible ones include:

  • Home Guarantee Scheme - The Home Guarantee Scheme is designed to assist eligible first home buyer to purchase a house with as little as a 5% deposit1.
  • The First Home Super Saving Scheme - First home buyers can contribute an additional $30,000 to their deposit by taking it from their super fund.
  • First Home Owner Grants - Under the scheme a one-off grant is payable to first home owners that satisfy all the eligibility criteria.
  • Transfer Duty or Exemption - As a first home buyer you may be eligible to receive an exemption or concession on your transfer duty (previously known as stamp duty).

Step Three - Make your move

Having your paperwork, deposit, and pre-approval ready to go means you’ll be more likely to secure your dream property when you find it.

Start your home loan application with Regional Australia Bank today by booking an appointment with one of our specialists, visiting your local branch, or calling us on 132 067

This information is not to be considered as financial or legal advice. Please ensure that you speak to your accountant or solicitor in relation to your situation.
1 Subject to NHFIC Eligibility Criteria and approval under the First Home Loan Deposit Scheme (FHLDS).