Buying your first home is a big milestone, and the good news is there are government grants and schemes designed to help you get there. But here’s something that trips up a lot of first home buyers: not all lenders are created equal when it comes to accessing these benefits.
There are plenty of lenders out there who will happily take on first home buyer loans, but not all of them are on the approved list for federal and state government grants and schemes. If you go with the wrong lender, you could miss out on benefits you’re entitled to. That’s why it’s really important to do your homework – or better yet, work with a first home buyer specialist who knows which lenders will give you access to everything available to you.
What You’ll Need to Get Started
For most government grants and schemes, you’ll need to have at least 5% in genuine savings. On top of that, you’ll want a bit of extra money set aside to cover fees, charges, and other costs that come with purchasing a property. It’s not a huge amount, but it’s important to budget for it so there are no surprises along the way.
The Benefits Can Really Add Up
The financial advantages for first home buyers can be significant. Depending on your situation and where you’re buying, you could benefit from stamp duty exemptions, cash grants towards your build, and savings on lenders mortgage insurance premiums – which alone can be anywhere from $20,000 to $30,000. These aren’t small numbers, so it’s worth making sure you’re set up to take full advantage.
What If You Don’t Qualify?
Not everyone will meet the criteria for first home buyer programs, and that’s okay – there are other pathways into the market. One option we see quite often is having a family member provide an equity guarantee. For example, your parents might be willing to use the equity in their own home to help guarantee your loan. This can be a great way to get your foot in the door if you don’t quite qualify for the government schemes.
Every situation is different, and what works for one person might not be the best fit for another. If you’re not sure where you stand or what options are available to you, give us a call – we’re happy to help you navigate it.
Key Takeaways
- Not all lenders are approved for government first home buyer grants – choose carefully
- You’ll typically need at least 5% genuine savings plus extra for fees and charges
- Benefits can include stamp duty exemptions, cash grants, and savings on mortgage insurance worth up to $20,000–$30,000
- If you don’t qualify for government programs, family guarantees can be an alternative way into the market
- Your circumstances will determine which options are best for you – get tailored advice
