Understanding Your First Home Buyer Journey
Buying your first home in Truganina can feel overwhelming, particularly when considering a unit purchase. As a first time home buyer, you'll need to understand various loan products, government assistance programs, and the application process to make informed decisions about your financial situation.
Units often present an excellent entry point into the property market for first home buyers. They typically require a lower loan amount compared to houses, making them more accessible for those building their borrowing capacity.
Government Support for First Time Home Buyers
Several first time home buyer programs and schemes are available to support your unit purchase:
• First Home Owner Grants (FHOG): Available for eligible first home buyers purchasing new properties
• Home Guarantee Scheme: Allows qualifying buyers to purchase with a deposit as low as 5% whilst avoiding lenders mortgage insurance (LMI)
• Stamp duty concessions: Many states offer reduced or waived stamp duty for first home buyers
These first time home buyer schemes can significantly reduce your upfront costs and help you enter the property market sooner.
Loan Options and Interest Rates
When applying for a home loan for your unit purchase, you'll encounter various interest rate options:
Variable Interest Rate: Fluctuates with market conditions and may offer offset account facilities
Fixed Interest Rate: Provides certainty with locked rates for a specified period
Many lenders offer interest rate discounts and special packages for first home buyers. Having access to home loan options from banks and lenders across Australia ensures you can compare different products and find suitable terms for your circumstances.
The Application Process
The application process for your first home loan involves several key steps:
- Get pre-approved: Understanding your borrowing capacity helps establish your budget
- Gather documentation: Bank statements, income verification, and expense records
- Property search: Finding a suitable unit within your approved loan amount
- Formal application: Submitting your complete home loan application
- Settlement: Completing the purchase process
A streamlined application process with experienced brokers can help you access banks and lenders nationwide, ensuring you find suitable loan products for your unit purchase.
Understanding Loan to Value Ratio (LVR)
The loan to value ratio (LVR) represents the percentage of the property's value you're borrowing. For unit purchases, consider:
• Higher LVRs (above 80%) typically require lenders mortgage insurance (LMI)
• Lower deposits mean higher LVRs and additional costs
• Some government schemes allow higher LVRs without LMI for eligible first home buyers
Benefits of Professional Mortgage Broking
Working with experienced mortgage brokers provides several benefits:
• Access to multiple lenders and loan products
• Professional assessment of your financial situation
• Assistance with first home buyer programs and government schemes
• Support throughout the entire application process
• Ongoing relationship for future refinancing needs
Mortgage brokers can also help you understand investment loan options if you're considering your first investment property after establishing yourself in the property market.
Making Your Unit Purchase Decision
When buying your first home, particularly a unit, consider factors beyond the purchase price:
• Strata fees and building management
• Location and transport links in Truganina
• Future capital growth potential
• Rental yields if considering investment loan application later
• Building quality and age
Understanding these factors helps ensure your unit purchase aligns with your long-term financial goals and lifestyle requirements.
As a Truganina resident, you have access to growing infrastructure and development opportunities. Professional mortgage brokers can help you capitalise on these local market conditions whilst securing appropriate loan products for your first home purchase.
Call one of our team or book an appointment at a time that works for you to discuss your unit purchase options.
