Answers to some FAQs for first home buyers

Daunting process
Daunting process

Buying your first home can be a daunting process. To help you start your property buying journey, Mortgage Choice outlined some of the key things you need to know as a first home buyer.

How much deposit do I need? 

As a general rule, lenders will want you to have a deposit that is at least 5% of the purchase price as a minimum. But if your deposit is less than 20%, you'll have to pay Lenders' Mortgage Insurance (LMI). You can avoid this if you have a family member go guarantor on your loan or receive a financial gift to boost your deposit size. 

What is LMI? 

LMI is a fee that you're required to pay if you have a deposit that is less than 20% of the purchase price. This actually protects the lender, not you, if you default on your home loan repayments. 

How much stamp duty do I have to pay?

The amount of stamp duty you have to pay depends on a range of factors such as the value of the property, the type of property and the state or territory that you live in. 

Do I qualify for any concessions?

If you're a first home buyer, you may be eligible for a number of first home grants and stamp duty concessions which vary depending on where you live. There's also a national Super Saver Scheme, which was introduced by the Federal Government last year, this allows you to save for a home deposit through your superannuation.

Saving: Gathering together the money for a deposit can be stressful, make sure you explore all the options available to you as a home buyer.

Saving: Gathering together the money for a deposit can be stressful, make sure you explore all the options available to you as a home buyer.