As per HIA housing forecasts the demand for housing in Australia is going to grow strongly in the coming years. The prices of homes have also been sky rocketing as a result. According to the Australian housing outlook report there was a price rise of about 8% in the year 2014 and all the major cities were setting the trend for real estate for the country.

However, analysts are of the opinion that the rise would slow down in 2015 and the trend is likely to slow down the national average as well. A number of people in the low income household have also been buying homes.


If you are a first time home buyer, then you must consider the following.

  • Grants for first time home buyers

  • Talking to lenders

  • Shop around for mortgage

  • Applying for pre-approval

  • Finding a real estate agent

  • Choosing a location

  • Negotiate, crunch your numbers

  • Home inspection

1. Consider your financial health- It is quite important to consider how much money you can put down as a down payment and how much mortgage you can afford to pay in a month before getting ready to buy a home. As your home is probably the only major investment in your life, make sure you are doing it correctly and comparing the home loans from multiple lenders. Every cent saved must be rightly used.

2. Grants for first time home buyers- First Home Owner Grant (FHOG) is a national scheme where the funds would be allocated to first time home buyers depending on which state they reside in. The scheme was started in 2000 and homeowners have to fulfill the required criteria.

3. Talking to lenders- Have an idea of programs like First Home Owner Grant (FHOG) and Home Purchase Assistance Programs and your eligibility for them when you meet with your lenders. It would be the lenders who would check your assets, your credit score and come up with a solution for your eligibility (for the loan).

4. Shop around for mortgage- Even before seeking pre-approval for your mortgage, it would be wise to shop around a bit. What if you get a better deal somewhere else? You may qualify for only one kind of loan, but it might still be worth looking around. HashChing has negotiated great home loan deals including low deposit home loans from multiple lenders through mortgage brokers.

5. Applying for pre-approval- This is where you get down to the realistic aspect of home buying; you have to get pre-approval for the loan. Till now everything was a dream, but when you get ready for pre-approval, things get serious and you need to be ready with your proof of deposit, monthly expense sheet and proof income documents.

Check your borrowing capacity though this calculator.

6. Find a real estate agent- Once you know the loan amount you will get, and you get the pre-approval, you can hire a real estate agent to get a home for you. The real estate agent would normally provide you with the rest of the team as well – for example, home inspectors, buyers, insurance agents and so on. A good agent would help you choose a good location depending on your requirements.

7. Choosing a location- Choosing the right location is quite important. Most people prefer to have their homes near locations that provide quick transport connections, offer proximity to the city, easy access to schools, hospitals and departmental stores. The property report offered can help you ease all confusions.

8. Negotiate, crunch your numbers- Before finalising the deal, negotiate the price and analyses your budget. Sometimes, you may have to go for a smaller home or perhaps, you will be able to afford a bigger one.

9. For first time home buyers belonging to the low-income group- The ABS has set a bar for defining the Low Income Group. If you are a single earning $30,000 or a couple earning $45,000 or a couple with one dependent child earning $60,000 then you’ll be classified under the group.

According to the Housing assistance in Australia 2014  report published by the Australian Institute of Health and Welfare (AIHW), home ownership is becoming increasingly difficult for low to moderate income households. The same report states that 61% of people in the age group 25 – 34 owned their homes in 1981, whereas it has fallen to 47% in the last few years.

However, there is no need to panic if you are a first home buyer. Once you plan appropriately, with the steps described above, you can secure your first home without any hassles.True, the price rise might make it tough, but getting a right loan is not that difficult. You can also follow these simple tips to own your home sooner.



HashChing is helping Australians by providing access to pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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