Buying your first home

There are many things you need to consider in the process of buying – some obvious, some not. The first one is generally the deposit. We run through a few other considerations that will help you in the buying process.

What to know before you buy

Whether you’re purchasing an investment property or a new home – regardless if it’s on your own or with your partner – buying your first house is exciting and you should be proud that you’re taking this step. Before you head down this path, there are a few things to consider that will help make the process a little easier.

Consider all the financials 

Try to get an understanding of all the costs that are associated with buying a house – beyond the actual price of the house. Keep in mind that when buying a house you’ll most likely need to pay for a conveyancer, solicitor, transfer and government fees, and potentially a building and pest inspection. These costs can start to add up. To avoid any nasty surprises, make sure you’re aware of them before you start the purchase journey.

Set yourself up for success

Consider getting pre-approval on a loan amount from your bank. Knowing how much you can borrow will help you shop realistically. You can usually get pre-approval on a loan for up to 90 days.

Ideally, aim for a 20% deposit. You’ll not only prove to the bank that you’re a good saver, but also avoid lenders’ mortgage insurance which can be expensive. 

Can you use your super to buy a house?

There are some excellent government benefits and concessions available to first-home buyers. You may be eligible for a grant (of up to $20,000 depending on where you buy) as well as stamp duty savings. Check out the Government's First Home website to see what you might be eligible for. You and your partner may each be able to access some of your super through the First Home Super Saver (FHSS) scheme. 

If you’re interested in learning more, or to find out if you’re eligible for the FHSS scheme, speak to one of our financial advisers.

How super can help

Since 2017, the Government has allowed you to access up to $30,000, plus any investment earnings of your super, to help you buy your first home. You can only access the super that was contributed by you through personal after-tax or salary sacrifice contributions. Contributions made by your employer (your compulsory Super Guarantee) can’t be accessed. You must also be an eligible first-home buyer. Once you’ve confirmed you’ll be able to access the scheme it’s easy to get started. 

• Begin making additional contributions to your super, either through salary sacrifice or after-tax personal contributions.
• You don’t need to notify your super fund that you’re doing this but keep in mind that there are limits to how much you can contribute each year.
• Once you’re ready to buy your first home, simply apply to the ATO and they'll confirm the next steps.
  
  There are considerations you should think about before you decide to use the FHSS scheme. We recommend speaking to one of our financial advisers to talk you through eligibility criteria and whether accessing super to help you buy your first home is the right decision for you.