Why Should First Home Buyers in Glen Waverley Start Here?

Getting Started on Your First Home Journey

Buying your first home in Glen Waverley is an exciting milestone, but it can feel overwhelming when you're not sure where to begin. As a first home buyer, you'll face decisions about home loan options, deposit requirements, and eligibility for various government schemes. The good news? With the right information and support, you can confidently work through your first home loan application and turn your property dreams into reality.

Let's walk through everything you need to know about purchasing your first property in Glen Waverley and the surrounding areas.

Understanding First Home Buyer Eligibility

Before you start browsing properties online or attending open homes, it's worth understanding if you qualify as a first home buyer. Generally, you'll need to meet these criteria:

• You haven't previously owned property in Australia
• You're an Australian citizen or permanent resident
• You intend to live in the property as your principal place of residence
• The property value falls within the relevant scheme caps

Meeting these requirements opens the door to several government initiatives designed specifically to help you enter the property market sooner.

First Home Buyer Grants and Concessions

As a first home buyer in Victoria, you may be eligible for various grants and concessions that can significantly reduce your upfront costs:

First Home Owner Grants (FHOG)

The Victorian government offers financial assistance for eligible first home buyers purchasing or building a new home. This grant can help cover some of your upfront costs and make buying your first home more achievable.

First Home Buyer Stamp Duty Concessions

Stamp duty can add tens of thousands of dollars to your purchase costs. Fortunately, Victorian first home buyers may be eligible for substantial stamp duty concessions or even full exemptions, depending on the property value. These savings can make a meaningful difference to your first home buyer budget.

First Home Loan Deposit Scheme

This federal government initiative allows eligible first home buyers to purchase a property with as little as a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI). The government effectively guarantees part of your loan, which can save you thousands of dollars.

Regional First Home Buyer Guarantee

While Glen Waverley itself may not qualify, if you're considering properties in regional areas, this scheme offers similar benefits to the standard deposit scheme with potentially higher property price caps.

Working Out Your First Home Buyer Budget

Knowing how much you can afford is crucial before you start your property search. Your budget should account for:

• Deposit (typically 5%, 10%, or 20% of the property value)
• Stamp duty (unless you receive a full concession)
• Conveyancing and legal fees
• Building and pest inspections
• Lender fees and charges
• Moving costs
• Initial furniture and appliances

Many first home buyers focus solely on the deposit but forget about these additional costs. Having a comprehensive understanding of your financial position helps you avoid surprises down the line.

Low Deposit Options for First Home Buyers

One of the biggest hurdles for first home buyers is saving enough for a deposit. Traditionally, a 20% deposit was standard, but several low deposit options now exist:

5% Deposit

Through the First Home Loan Deposit Scheme or with certain lenders, you can purchase with just 5% saved. However, you'll need to meet specific criteria and property price caps.

10% Deposit

Many lenders offer home loan options with a 10% deposit, though you'll typically need to pay LMI if you're borrowing more than 80% of the property value.

Gift Deposit

Some lenders accept a gift deposit from family members as part or all of your deposit. This can be particularly helpful if you're struggling to save the full amount yourself.

First Home Super Saver Scheme

This scheme allows you to save money for your deposit inside your superannuation fund, taking advantage of the concessional tax treatment. You can contribute up to $15,000 per year (up to a total of $50,000) and then withdraw it for your home deposit.

Understanding Interest Rates and Loan Features

When you apply for a home loan, you'll need to choose between different interest rate types and loan features:

Fixed Interest Rate vs Variable Interest Rate

A fixed interest rate locks in your rate for a set period (typically 1-5 years), providing certainty with your repayments. A variable interest rate fluctuates with the market, which means your repayments can go up or down. Some borrowers choose a split loan, combining both options.

Offset Account

An offset account is a transaction account linked to your home loan. The balance in this account offsets your loan balance, reducing the interest you pay. This feature can save you thousands over the life of your loan.

Redraw Facility

A redraw facility allows you to access any extra repayments you've made on your loan. This provides flexibility if you need funds for emergencies or renovations.

Interest Rate Discounts

Many lenders offer interest rate discounts based on factors like your deposit size, loan amount, or if you're a professional in certain occupations. It's worth exploring what discounts you might qualify for.

Your First Home Buyer Checklist

To help you stay organised throughout the process, here's a practical checklist:

1. Check your first home buyer eligibility for government schemes
2. Review your finances and calculate your first home buyer budget
3. Obtain pre-approval for your home loan
4. Research Glen Waverley suburbs and property prices
5. Attend open homes and inspections
6. Make an offer on a property
7. Complete your home loan application
8. Organise building and pest inspections
9. Finalise your loan and settlement
10. Move into your new home!

The Importance of Pre-Approval

Before you make an offer on a property, getting pre-approval for your home loan is highly recommended. Pre-approval gives you:

• Confidence about how much you can borrow
• Stronger negotiating power with sellers
• A clear timeline for settlement
• Peace of mind that your finance is likely to be approved

Pre-approval typically lasts for 3-6 months, giving you time to find the right property without rushing.

Understanding Lenders Mortgage Insurance (LMI)

If you're borrowing more than 80% of the property value, most lenders will require you to pay LMI. This insurance protects the lender (not you) if you default on your loan. LMI can cost several thousand dollars and is usually added to your loan amount.

However, certain schemes like the First Home Loan Deposit Scheme allow you to avoid LMI even with a smaller deposit, which can result in substantial savings.

Why Local Knowledge Matters

Working with a mortgage broker in Glen Waverley means you're dealing with someone who understands the local property market. They know typical property values in different streets, which suburbs offer the most value, and which lenders are most active in the area.

This local expertise, combined with knowledge of the various home loan options available, can help you make informed decisions throughout your purchase.

Taking the Next Step

Buying your first home in Glen Waverley is a significant achievement, and having the right support makes all the difference. At Mobile Mortgage Solutions, we specialise in helping first home buyers understand their options, access government schemes, and find suitable home loan options for their situation.

Whether you're just starting to save for your deposit or you're ready to apply for a home loan, we can guide you through every step of the process. From understanding first home buyer stamp duty concessions to exploring low deposit options and securing pre-approval, we're here to help.

Call one of our team or book an appointment at a time that works for you. Let's discuss your goals and create a plan to help you purchase your first home in Glen Waverley.