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