First Home Buyer Tips

Buying your first home is a massive step to take, and is potentially quite a daunting process. Here’s a few simple tips to keep in mind when you’re hunting for that perfect place to call home.

Do I have enough savings?
Most financial institutions currently consider 5% of the purchase price the minimum they will accept to open a loan, with 10% or greater being better regarded. However, by saving a 20% deposit or more, home buyers eliminate the need to take out Lenders Mortgage Insurance or LMI. According to Scott Pape, The Barefoot Investor, “LMI is insurance that you pay to protect the bank in case you can’t make the repayments, and [LMI] can be thousands of dollars”. By saving a bit longer for a bigger deposit, you can at least lower the amount of money you have to pay out in LMI, or even eliminate the need for it altogether, and that can mean savings on your loan over the long term.
For more information on loans and your options, why not talk to a mortgage broker such as Loan Market.  Loan Market has access to over 1000 loan products from 30 different banks and lenders.  For more info head to

Do I need Pre-Approval?
In short, no.  But having a pre-approval puts you a step ahead of other buyers that don’t. It will give you a better chance at buying the home you want when you want, without having to wait for the bank to approve your loan later. Having pre-approval also means that you can house hunt with a price range in mind and act quickly when a great opportunity comes up. If you’re planning to buy at auction, pre-approval is a must as it gives you a clear idea how high you can bid on the day.

Grants for first home buyers
Grants for first home buyers vary from state to state.  In NSW first home buyers are eligible for a $15,000 grant on new constructions whether they be off the plan, recently built or built by you, until December 31st, 2015. From January 1st, 2016 this amount will drop to $10,000.  For more info click here.

How do I find the right property?
Finding the right home for you is key, and the friendly team at Ray White Emms Mooney are here to help.  With access to the widest range of properties in Australasia and over 110 years experience in the property business, Ray White is a name you know you can rely on.
Why not give us a call, or come into see us at one of our offices in Bathurst, Blayney, Oberon, Cowra or Molong.