FAR NORTH COAST CONVEYANCING

RESOURCES FOR FIRST HOME BUYERS

FIRST HOMEBUYERS

Being a First Homebuyer these days is tough! Trust us, we know. It’s a tough market out there, prices just keep going up, and more and more people keep getting locked out. For many first homebuyers, it constantly feel like a dream that is just… slipping away.

But – people everywhere are still managing to achieve the Great Australian Dream of home ownership. And our practicing area of the NSW Northern Rivers & South East Queensland is a beautiful place to buy up, get settled, and either raise your family, enjoy life, kick start your pet projects, or whatever makes you tick.
Thankfully, Far North Coast Conveyancing can help, through our affordable rate, and through links to the resources below.
Please note – this advice is general in nature only. You should seek formal advice for your particular circumstances.

FIRST HOMEBUYER SCHEMES & STAMP DUTY

Being a conveyancer, Far North Coast Conveyancing cannot offer formal advice on a mortgage. You should seek financial advice for this.

Generally, a purchaser must normally pay Stamp Duty on their property purchase. This amounts to roughly 4% of the purchase price, but varies from property to property. This must ordinarily be saved in addition to your Deposit.

However, the NSW and QLD governments have First Homebuyer schemes, which allow you to skip paying this in certain circumstances. This can save you tens of thousands of dollars off your deposit. Please enquire with us to confirm your eligibility for any First Home Buyers schemes in NSW or QLD.

FIRST HOME DEPOSITS

For many first homebuyers, the toughest hurdle is the deposit. The longer it takes to save, the longer you stay locked out of the market, and around the cycle goes.

Many banks are offering potential customers with good credit histories and stable jobs, the ability to borrow more than 80% of their home. To do this, the bank generally requires you to pay a fee known as Lenders Mortgage Insurance (LMI). This protects the bank (not you) against the prospect of you defaulting. And it’s expensive! However, many first home-buyers are choosing to take this step. You should seek further advice from your bank about this.

The NSW and QLD governments have their respective First Home Owner grant schemes. In some cases you may be entitled to a limited cash grant from the government, which can assist your deposit. This is generally reserved for new homes (i.e. newly constructed homes that have not been previously lived in).

The Bank of Mum and Dad has also been increasing in prevalence, particularly throughout the late-2020 and early-2021 property boom. Again, you should discuss this first and foremost with your family, and also your bank. Your family may choose to gift you a contribution towards your deposit, or sign on as a guarantor, or for investment loans you may also be able to co-contribute (i.e. your family buys a share of the house).

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