Chloe Dennis has helped many first home buyers across Brisbane and South East Queensland to navigate how much they need as a deposit, accessing the Home Guarantee Scheme through parent guarantee or equity loans.
How much money do you need for a deposit?
Generally, you need at least a 20% deposit to buy a property. This equates to 20% of the property's value based on the bank's valuation (a loan-to-value ratio (LVR) under 80%). However, you might be surprised to learn that you can buy a home with as little as a 5% deposit (95% LVR) if you are eligible. There are grants and schemes available to help you raise that deposit.
How do you work out how much a first home buyer can borrow?
We start by assessing your salary and other income sources. Then, we review your expenses, including debts and living costs, and look at your savings. Use our Borrowing Power Calculator for an initial estimate. For a more tailored indication, I am happy to help.
Are there any government or local government grants that can assist first home buyers?
The Home Guarantee Scheme supports eligible first-home buyers to purchase new or existing homes with a deposit as low as 5%. There are also first home concessions that could reduce the stamp duty. Learn more about First Home concessions and Queensland First Home Buyer Grants. If you dream of owning your first home in Brisbane or across Queensland, I can assist you with your eligibility.
Common mistakes first home buyers make.
Many first-time buyers think they need to save a full 20% deposit. Others focus on one area instead of exploring different locations. Common mistakes include forgetting debts, not getting pre-approval before making an offer, and not knowing the additional costs of buying a home. Ensure you know the neighbourhood, its amenities, and any future developments planned for the suburbs of interest.
When should I speak to a home lender?
As early as possible! Whether you are actively saving or just beginning to think about buying your first place, a Lending Specialist can help you:
- Understand the home loan process, from start to finish
- Calculate your borrowing power
- Explore your loan options and check your eligibility for grants and schemes.
Required Documentation.
You will need to provide two recent payslips and six months of bank statements showing your savings and expenses. Identification documents such as your licence, passport, Medicare card, and a recent bill with your current address are also required. Once we have these documents, we can assess your affordability and make the process smooth for you.
Fees you must pay.
Fees generally include stamp duty, conveyancer fees, and government charges. If you are not eligible for any grants, you may need to pay for Lenders’ Mortgage Insurance (LMI), building, home, and contents insurance, building and pest inspections, and any bank fees. Consider other costs like break-costs for rental leases and removalist costs.
What is stamp duty and why do we pay it?
Stamp duty is a tax levied by state or territory governments on certain purchases, including buying a home, land, or investment property. Some concessions are available for eligible borrowers and first-time home buyers to reduce or eliminate this expense. Use our Stamp Duty Calculator to find out how much you will need to pay in Brisbane.
What does pre-approval mean?
Pre-approval means we have assessed how much you can afford to borrow. This gives you the confidence to look for a home and make an offer subject to property checks like a valuation.
Tips for buying at auction
- Before the auction, contact the agent, get the vendor's statement (Form 1), arrange building inspections, and ensure valuations are completed
- Arrange building insurance and register to bid. If you are the successful bidder, you will need to sign the contract of sale and pay the deposit immediately. There is also the option to put in an offer before the auction
- Do not let your emotions drive your bid. Set your limit, decide the maximum price you are willing to pay, and stick to it
- Bid confidently and stay calm.
The best time to get a building or pest inspection.
A building and pest inspection is a thorough check-up done on a property you’re looking to purchase. It involves qualified inspectors checking for structural damage, cracks, leaks, and signs of pests. Most property purchase contracts have a building and pest clause. Generally, you will get an inspection if the seller accepts your offer or if you are very interested in a property before the auction. For other tips, check out our inspection checklist.
Common feelings first home buyers have
It's normal to feel nervous, stressed, excited, confused, and unsure! To overcome these feelings, know what you can borrow, research the property market and home-buying process, and ask lots of questions. I have helped many people by assuring them what to expect through the home-buying process.
How have you helped overcome these feelings?
To make the home-buying process less stressful, i stay closely connected with my clients. They can get in touch anytime if they have questions. I am here to make the process as easy as possible.
