Aspiring to become a homeowner is one thing, actually planning how you’re going to pull it off is another, especially in Australia’s record-hot property market.

Fortunately, there are some new government initiatives to help you achieve your home ownership goals— possibly sooner than expected.

1. First Home Loan Deposit Scheme (FHLDS) expansion and increased price caps

Under the FHLDS, 10,000 additional places will be available from 1 July 2021. The federal government has also increased the maximum purchase price by an additional $150,000 in some states and territories. Click here to see the updated property price caps.

2. New Home Guarantee construction extension

The New Home Guarantee has been expanded with an additional 10,000 places available and will now have a construction commencement timeframe of 12 months.

Eligible first homebuyers can use the New Home Guarantee in conjunction with other government programs, like the First Home Super Saver Scheme, HomeBuilder grant or state and territory First Home Owner Grants and stamp duty concessions.

Qualifying for one of these incentives may give you the confidence and financial boost to start looking, but if you’re still overwhelmed about how to find the right professional to help you, how to figure out how much to borrow, and how to choose the right finance option, follow these steps to make this process a success.

1. Visit your mortgage broker

As mortgage brokers, we have access to multiple lenders and finance products, providing you with multiple choices for your credit needs. We can compare rates across lenders, giving us insight into the most suitable rate and product for your needs and objectives, compared to a bank representative who only has access to their own branded product.

2. Prepare for your first meeting

Before your first face-to-face meeting, we’ll likely conduct a ‘needs analysis’ and ‘fact find’ to better understand your needs, objectives and financial situation. You should be prepared to provide us with information about your employment history, assets and expenses.

You should also come prepared with the following questions:

• The type of loans offered, terms, repayment options and interest rate types
• The ongoing fees attached to various loans, including early exit fees, late payments, break and redraw fees
• The typical timeframe for loan settlement
• What services they provide post-settlement

We will likely ask you about:

• Your medium and long-term financial goals
• The amount you want to borrow
• Comparisons of your home loan options and your understanding of the fees, costs and conditions

Arming yourself with the right questions and knowing what we’ll ask you will make you feel prepared and informed.

3. Prepare your documents

The next step is to assemble your documents, including your ID, transaction statements, tax returns, rental income statements, ‘contract of sale’ and proof of deposit.

As daunting as it may seem to buy your first home, or your second, we’re here to guide you through the process so you feel informed and empowered to make the right decisions.

If you need help getting started get in touch today.