Entering the property market for the first time can be a daunting experience, especially in today’s competitive real estate environment. For Emily, a 29-year-old nurse, the path to homeownership seemed challenging until she sought our expertise.
Here’s how we assisted Emily in overcoming obstacles and achieving her goal of owning her first home.
The Challenge
Emily had been diligently saving for a home deposit while working full-time and living with her parents. However, she faced several hurdles:
- Rising property prices outpacing her ability to save
- Limited knowledge of home loan options and the buying process
- Concern about the size of the deposit required for a conventional loan
- Uncertainty about her eligibility for first home buyer assistance programs
With savings of $30,000 and a desire to move into her own home within the next six months, Emily approached us for guidance.
Our Approach
After an in-depth consultation with Emily, we developed a personalised strategy to address her unique situation:
- Financial Assessment: We conducted a comprehensive review of Emily’s finances, including her income and expenses.
- Market Analysis: We provided Emily with detailed insights into the local property market, focusing on areas aligned with her preferences and budget.
- Loan Options: We explored various loan products suitable for first-home buyers, focusing on low-deposit options.
- Government Schemes: We identified Emily as an ideal candidate for the First Home Guarantee scheme (formerly the First Home Loan Deposit Scheme).
The Process
Leveraging the First Home Guarantee
We advised Emily on the benefits of the First Home Guarantee, which allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). This scheme was crucial in helping Emily enter the market sooner than anticipated.
Loan Application
We assisted Emily in preparing a strong loan application, highlighting her stable employment, good credit history, and genuine savings. We then helped her apply for a loan with a lender participating in the First Home Guarantee scheme.
Property Search
Emily began her property search with a clear understanding of her borrowing capacity and the price thresholds for the First Home Guarantee in her area. We provided her with market reports and comparable sales data to ensure she made informed decisions.
Offer and Purchase
When Emily found a property she loved – a well-maintained two-bedroom townhouse in a desirable suburb – we guided her through the offer and negotiation process. Our expertise helped Emily secure the property competitively within the scheme’s price cap.
Settlement
We coordinated with Emily’s conveyancer and the lender to ensure a smooth settlement process. We also advised Emily on the importance of building and pest inspections to protect her investment.
The Outcome
Thanks to our tailored approach and ongoing support, Emily successfully purchased her first home much sooner than she had initially thought possible.
By utilising the First Home Guarantee scheme and securing a competitive home loan, Emily was able to enter the property market with a smaller deposit than traditionally required.
Key achievements:
- Secured a place in the First Home Guarantee scheme, allowing Emily to buy with only a 5% deposit
- Avoided the cost of Lenders Mortgage Insurance, saving thousands of dollars
- Obtained a home loan with a competitive interest rate
- Purchased a property that met both her current needs and long-term goals
- Navigated the entire home buying process with confidence and clarity
Emily’s journey demonstrates that with the right guidance and by leveraging available government schemes, first home buyers can overcome market challenges and achieve their property ownership dreams.
If you’re a first home buyer looking for support, don’t hesitate to reach out to us for personalised assistance in your home buying journey.
