Buying your first home can be a daunting process. Navigating pre-approval, purchase contracts, loan features, conveyancing – all these little details get tricky. As an experienced first home buyer mortgage broker, our team at Simplifi Lending can guide you through your first home buyer journey.
Getting your first home loan doesn’t need to be stressful. Simplifi Lending has helped hundreds of first home buyers get approved for the purchase of their first property. We’ll walk you through your figures, the home loan application process and answer all your questions.
When you’re ready to get approved, we will compare hundreds of home loan options for you from more than 40 top home loan lenders and manage the application from start to finish.
First home buyer home loans have a different set of lender policies, schemes and incentives to other types of home loans. We are specialists in first home buying and will compare your options across our extensive panel of over 40 different lenders.
As part of our process, we will educate you on the critical parts of buying your first home. From savings requirements and borrowing capacity to contract clauses and negotiating with agents, we are here to provide expertise and answer any questions you have.
First Home Owners Grant, First Home Guarantee Scheme, Regional Home Guarantee Scheme, First Home Concessions and more! There are a large number of schemes and incentives available to eligible first home buyers and we are experts on the eligibility criteria for these. We can advise you of any schemes you may be eligible for and co-ordinate applying for these on your behalf.
All lenders have a requirement to positively identify all applicants. A driver’s licence, passport and Medicare card will generally meet the criteria for all lenders, although substitute documents are available if you don’t hold one of these. Some schemes and incentives also have specific ID requirements.
First home buyer loans can have unique requirements for your savings and rental history. You will need to have your savings history and rental history (if applicable) available to give you as many lender options as possible
You will need to provide evidence that you have sufficient income to service the home loan you are looking to get approved for. We will let you know exactly what supporting documents are required to verify your income as part of your preliminary assessment
You will need to provide details and statements for any car loans, personal loans or credit cards you have. Other items like HELP/STSL debt, interest free finance facilities and charge cards also need to be declared so we can give you accurate figures and borrowing capacity
We suggest doing a bit of research so you have an idea of approximately how much you would like to spend on a property and in roughly what location. Also think about the type of property- are you looking for a unit, villa, townhouse, or fully detached house? Your price range may influence what type of property you can afford in that area.
We’ve prepared the below hints and tips to make you are prepared and your home buying process is as smooth as possible.
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Before you get to a savings plan or pre-approval, you should make sure your finances are in order. If you have late or missed payments on existing debts, it can show up on your credit file and cause issues with your application. This is called ‘Comprehensive Credit Reporting’ and this information will be reviewed by your chosen lender.
A summary of events that may stay on your credit file include:
| Event | Time on Credit File |
| Financial Hardship Arrangement | I year |
| Poor Repayment History | 2 years |
| New Credit Enquiries | 5 years |
| Credit Default or Court Judgement | 5 years |
| Debt Agreement | 5 years or 2 years from agreement termination |
| Bankruptcy | 5 years or 2 years from bankruptcy discharg |
If you would like to review your credit file, you can request a free copy of your credit file from Equifax as long as you meet their criteria. If you have known issues on your credit file, please bring this to our attention when you talk with us.
Saving a deposit can be the toughest part of home buying, especially buying your first property.
So, how much deposit do you need for your first home? You can buy a house with as little as a 5% deposit, but we recommend saving a minimum of 8% before you start your property hunt.
Buying your first home with a small deposit often means paying higher interest rates, as well as expenses like Lenders Mortgage Insurance (LMI). There are significant savings on LMI premiums as you increase your deposit, and we know how to structure your finances to take advantage of this.
Lastly- depending on purchase price and whether you’ve owned property before, you may qualify for government schemes which reduce the deposit required or the LMI payable. These are covered later in this guide.
As a general rule- the higher the deposit, the better the interest rate and lower the LMI premium you will pay. As your first home buyer broker, we will provide these tailored figures for you. We cover your specific situation in detail as part of our free preliminary assessment.
Australia’s Federal and State Governments offer grants and schemes that can help you get into your first home. Eligible first home buyers in Queensland can access the following grants and schemes for 2023-24:
Schemes like the First Home Guarantee can save you thousands and let you access the property market with as little as 2-5% genuine savings. Use our Stamp Duty Calculator to see how much you could save. We will co-ordinate the application process with you for any schemes you may qualify for.
Some of the most common questions first home buyers ask us are:
You can use our Loan Repayment Calculator to get a rough idea of repayments and what you can afford to borrow, but to get a complete and accurate picture we will conduct a detailed preliminary assessment of your financial position.
As your first home buyer broker, we will walk you through all the details. We’ll calculate your buying power, educate you on your options, figure out which banks are likely to approve you and manage the application process for you.
If you’d like to take the next step and get your free preliminary assessment, contact us and we can start the home buying process today.
You’re ready to start heading to open homes and making offers- where to now? Working with us as your first home buyer mortgage broker will take the hassle getting home loan pre-approval.
Pre-approval entails applying to the bank for what is called ‘conditional approval’. The bank will review your income information, statements, account conduct, credit file and more. Assuming you meet their criteria, they will then issue your pre-approval. This approval is usually conditional on:
Our first home buyer broker will make sure you’re eligible, you pass the banks credit policies, get your documents in order and help you navigate any potential issues. Once approved, the lender will provide a pre-approval letter and you can start your house hunt!
With pre-approval in hand, all that’s left to do is find the right home! This is all about research. Where do you want to live? What amenities, schools or shops are you looking for? Will you buy an existing house or build a new one? Freestanding home, townhouse or apartment?
The choices you make may also affect what types of home loan deals are available. Your mortgage broker can provide guidance on the right kind of property and what you need to consider if you want to access any applicable government incentives.
We also offer Corelogic RPData reports for all of our clients. This information can be invaluable for seeing trends in property prices, the estimated value of the property, sales history, suburb statistics and much more.
Simply call or email us with the property details and we will send you the report within the next business day.
Found the home you want? Great! This can be where the nerves kick in, but rest assured, we’ve got it all covered for you.
The details that typically make up a formal offer are:
This is the amount you will pay, generally when the seller accepts your offer and the contract is signed. We would generally suggest you keep this amount reasonably low at around $1,000-$2,000, in case the contract falls through.
This is the remainder of your deposit that is usually paid once the contract has gone unconditional- generally this means you are satisfied with finance approval and building and pest inspections.
This is a very important clause when purchasing your first home. The finance clause is usually set to between 7 and 21 days from the contract signing date and allows you to exit the contract and get your deposit back if you are unable to obtain finance approval. Having pre-approval will likely enable you to offer a shorter finance clause, which can make your offer more attractive to a seller.
Similar to your finance clause, this clause enables you to obtain a building and pest report in a set period (usually 7-14 days) at your own cost and exit the contract if there are substantial structural or pest related issues on the property
Typically set at between 30 and 90 days from the contract date, this is the date that you will formally take ownership of your property.
If you are the only person with an offer on the property, the owner can either accept your offer, make a counter offer or reject it. The rules change once there are multiple offers (and vary by state). Generally, all parties will be asked to submit their ‘best and final offer.’ The owner can accept their preferred offer, reject all offers, or negotiate further with their chosen party.
We strongly encourage you to call us when you are making a formal offer so we can talk you through what to include in your contract.
Once your offer has been accepted and the purchase contract signed, this needs to be provided to us and we will manage the process from there.
We will:
It is at this point we would also suggest that you:
If you require a contact for either of these services, please let us know and we can provide a suitable and qualified recommendation.
Once approved, your loan documents will be issued and we will coordinate the signing of these with you. The lender will then certify the documents and your solicitor and lender will book the settlement in on the date noted in your contract.
Congratulations! On the settlement date nominated in the contract, your conveyancer will advise the bank on how to disburse the loan funds, the lender will fund your home loan and you will take formal ownership of the property and be able to move in.
Our job as your mortgage broker is not done here! We are your first point of contact moving forward for anything lending related- loan or rate reviews, top ups, splits, fixes and much more!
Want to plan your savings goal, do a household budget or find out roughly what your repayments could be? Use our suite of calculators to learn more.
Ready to find out your borrowing capacity or what to find out how much you can buy for? Get in touch with us today for your obligation-free phone consult.
We also offer the below to our clients:
Absolutely! A big part of what we do for home buyers is centred around educating you on the home buying process:
We can provide very basic information at this early stage, or go through everything in detail- whatever you prefer!
Lender’s mortgage insurance (also called LMI) is an insurance you may have to take out as part of your loan if you are borrowing more than 80% of the property value. This amount is generally added in to the loan and covers the bank in the event that you default. If this insurance may apply to you, we will cover it off in detail in your initial consult and preliminary assessment.
With most lenders, your pre-approval will last for an initial period of 90 days. This can then usually be extended for a further 90 days by providing updated income information and statements. Most pre-approvals will lapse after 180 days and need to be re-done at that stage.
In short- if you think you may buy in the next 3-6 months, we would suggest getting pre-approved!
First home buyers can definitely look to get a construction loan, however this type of lending has different requirements and a different application process to a home loan for an established house. Contact us for more information on this.
There are concessions and schemes available to First Home Buyers where you may pay either no stamp duty or a reduced amount. The eligibility criteria for these incentives vary based on purchase price, state and applicant. If you do not qualify for these incentives, then stamp duty will be payable on your purchase.
We will talk you through your lender options, rate types, repayment preferences and much more as part of your home loan buying process. Educating you on all of these items so you understand the pros and cons will allow you to make an informed decision about which lender and loan you wish to proceed with. In addition to that, our role is to provide you with guidance on what is most appropriate for your individual circumstances.
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– Why choose SimpliFi lending?
– What do you need to apply for a first home buyers loan?
– How do I apply for a first home buyers loan?
– First Home Buyers Home Loan Guide
– Calculate your borrowing power
– FAQs
Want to plan your savings goal, do a household budget or find out roughly what your repayments could be? Use our suite of calculators to learn more.
Loan Repayment Calculator
Extra Repayment Calculator
Home Loan Offset Calculator
Savings Goal Calculator
Ready to find out your borrowing capacity or what to find out how much you can buy for? Get in touch with us today for your obligation-free phone consult.
*Talk to a First Home Buyer Home Loan Expert
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Prefer to talk to us now? Call us on 1300 616 000 today!
