Like many firsts, building your first home can be both an exciting and scary experience. As one of the biggest milestones in your life, knowledge is going to be key!

Read through our handy checklist to help get you started

1. Get on top of your finances

Understanding your budget and knowing what financial help is out there for first-time buyers is key. Consider how much you've saved, what you can borrow, and if you're eligible for any government schemes. Getting yourself ready for a home loan might seem overwhelming, but don't stress! A mortgage broker can break it all down for you in a friendly chat. Don't have one? We partner with some leading brokers who know all things construction.

2. Set clear savings goals - and stick to it!

Let's chat about budgeting for your dream home—it's a big deal! Setting clear savings goals can make saving feel like an adventure rather than a chore. Be real with yourself when planning your budget. It's all about making doable changes to your spending habits and reaching those savings targets. Adding a specific amount and deadline to your goal can keep you on track. Sure, skipping that daily latte can add up (around $1,500 a year!), but bigger changes like crashing with family can really boost your savings. Think about saving a chunk of cash each month that's similar to what your future mortgage payments might be. It shows potential lenders you're serious about this home-buying gig!

3. All things deposits

"I'm on a mission to save up for a house deposit!"—a familiar goal echoed by many in their 20s and 30s. The target? Typically, it's about squirreling away a hefty 20% of the property price. Achieving this milestone means dodging the pricey Lenders Mortgage Insurance (LMI) and getting a solid head start on chipping away at your loan.

Now, if you've managed to stash away between 5-10%, don't fret! Paying LMI might seem like a small bump in the road to enter the property market. Plus, you can roll it into your loan repayments, spreading it out over the loan's duration.

But hey, if you're not keen on forking out for LMI, there's another option: a guarantor. Typically, it's the folks (good ol' mum and dad) who step in, offering up their own property as extra security for your loan. However, keep in mind that this approach has its downsides—it could make it trickier for your parents to sell their property or tap into its equity down the line.

Paying LMI might seem like a small bump in the road to enter the property market. Plus, you can roll it into your loan repayments, spreading it out over the loan's duration.

4. What type of home loan should I get?

Okay stick with us on this one and there's a few!

Variable rate: This one's like a dance with interest rates – your repayments move up and down, offering flexibility and potential savings over time.

Fixed rate: If you prefer stability, a fixed rate keeps your repayments consistent for a set period, shielding you from interest rate surprises.

Offset account: Think of this as your money-saving sidekick linked to your home loan, helping to reduce the interest you pay while keeping your funds accessible.

Redraw facility: It's like having a secret stash attached to your loan – access any extra payments you've made for added financial flexibility.

Principal + interest loan: By chipping away at both the principal and interest, you'll end up paying less interest over the loan's life compared to an interest-only loan.

Interest-only loan: Enjoy lower initial repayments, but remember, deferring principal payments could mean higher overall interest costs down the road.

5. What about First Home Owners Grants?

Wondering about the First Home Owners Grant (FHOG)? It's a government assistance program aimed at helping first-time home buyers break into the property market.

In Victoria, eligible buyers can receive a $10,000 grant for new homes valued up to $750,000. Meanwhile, in Queensland, the grant goes up to $30,000 for those purchasing or building a new home, also valued up to $750,000. South Australia offers a $15,000 FHOG for new homes valued up to $650,000. Now, there are some conditions to meet, which can vary between states.

Generally, the property must be brand new (either purchased or constructed), and you must not have previously received the grant or owned a residential property. Plus, you're usually required to live in the house for a certain period. Remember, government schemes can change, so it's best to check the latest details on your State Revenue Office website.

With our extensive experience assisting thousands of first-time homebuyers in realising their dreams, rest assured, we're equipped to address any further enquiries you may have. Reach out today and we'll get you started towards your first home with confidence and ease!