First home buyers

Buying your first home is a big step. As home loan brokers in Newcastle, we are here to simplify the process & get you on the property ladder with the most suitable product.

How much can I borrow? What loan is best for me? How do I go about making an offer on my dream first home?

If you’re a first home buyer, these are probably some of the key questions you have. Purchasing a property can seem confusing and complex when you’ve not done it before, but we’re here to help.

We always begin by asking you your ‘why’: what are your goals for buying your first home? We then find the most suitable product from over 40 reputable lenders. Importantly, because we’re independent, we always put yours, not the banks, interests first.

Specialists in the local Newcastle and Hunter markets, we have over 8 years of experience in the lending world and over 20 years in the finance industry. From securing pre-approval to making an offer and working with conveyancers, we do all the heavy lifting making the process smooth, fast and stress-free.

First Home Buyer

Our first home buyer lenders

Previous
Next
“Buying our first home was something that we had wanted to do for a long time. We met with Joel at Ascension Finance to discuss our options, and he helped us put a plan in place to make this dream a reality. We focused on paying down our personal loans to maximise our borrowing capacity. He talked us through all the available First Home Buyer schemes and guarantor options. In the end, we were able to utilise a guarantor to help buy our first home sooner than we would have been able to otherwise and didn’t need to pay any lenders mortgage insurance fees. We were also able to hold onto our savings to make improvements on the property we bought, rather than needing to put them all toward the purchase as a deposit.”
—Ashley & Riley, Beresfield NSW
You may be surprised at your options as a first time home buyer—from what you can borrow to the assistance you can get.
Schedule a Call with a Broker

FAQs—First-home Buyer

There are three types of interest rates and two repayment types commonly available on home loans. These are:

  • Variable rate – Interest can go up or down due to economic factors
  • Fixed-rate – Interest rate stays the same for the initial part of your loan
  • Split rate – A combination of variable and fixed. You can choose the percentage of each
  • Interest only – You only pay back the interest, not the money borrowed (the ‘principal’)
  • Principal and interest – You pay back the money borrowed plus interest

This depends on a range of factors, such as whether you have access to a guarantor or are eligible for various government schemes and grants. Having a 20% deposit puts you in the best borrowing position, but it can be possible to buy your first home with no deposit.

The minimum deposit we ideally recommend for first home buyers is around 8% to 10%. Ultimately, the larger your deposit, the better, as you’ll borrow less, pay less in fees and pay less interest.

Home loan pre-approval is when a lender grants you conditional approval to borrow money for a property. Pre-approval usually lasts for 3-6 months.

Benefits of pre-approval include avoiding wasting time looking for properties outside your budget, knowing your bidding limit at auction and making your offer more attractive to sellers.

There are a few things we recommend you do to improve your chances of getting a home loan.
  • Save a good deposit
  • Build a good credit score
  • Live within your means and avoid Buy Now, Pay Later facilities
  • Hold off on major purchases
  • Avoid changing your job
  • Keep other financial liabilities (e.g. car loans, credit cards) to a minimum

As a first home buyer, you may be eligible to receive exemptions, concessions and grants to make it easier to buy your first home. These include:

  • First Home Buyer Assistance Scheme
  • First Home Owners Grant (New Homes)
  • Shared Equity Home Buyer Helper
  • First Home Buyer Choice
  • First home buyer supersaver scheme
  • The Home Guarantee Scheme

In NSW, these schemes are managed through Revenue NSW and the National Housing Finance and Investment Corporation.

First time buyers with a deposit of less than 20% are generally required to pay lenders mortgage insurance. This is a once-off premium paid to the Insurer that covers the bank’s risk, not yours.

This cost of LMI varies depending on how much you borrow and how much deposit you have. It can be possible to avoid LMI with less than a 20% deposit if you have a guarantor or access the Home Guarantee Scheme.

When we help you select a mortgage, we’ll ensure you choose a product you can afford. However, if you find yourself in a difficult financial position later on, the best thing to do is contact us, and we’ll advise you on how to negotiate with your lender to find a solution.

The first home loan process can take a few days to several weeks to complete, depending on lender eligibility and turnaround times.

Documents you need to provide include:

  • Bank statements (showing at least three months savings)
  • ID – driver’s licence, passport, birth certificate
  • Recent statements for existing financial liabilities
  • Two most recent pay slips
  • If you’re self-employed, your last two years of personal and business tax returns and ATO assessments, including P&L statements.