First Home Buyers: How We Helped Sarah and Luke Purchase Their First Home

Purchasing your first home is a milestone many people dream of, but the journey to homeownership can feel overwhelming. For first-time buyers, understanding the ins and outs of the housing market, deciphering loan options, and managing a multitude of financial considerations can be challenging.

However, the process can be much smoother and more rewarding with the right guidance.

Last year, Sarah and Luke came to us for assistance with buying their first home. Here’s a case study of how we helped them overcome their challenges and achieve their goal of homeownership.

The Challenge

In their early thirties, Sarah and Luke had recently welcomed a baby and decided it was time to buy their first home.

Sarah worked as a school teacher, and Luke was an electrician. While both had stable incomes, they were concerned about how to navigate the complicated home-buying process.

Key challenges they faced included:

They had been saving for a home deposit for about two years but had only managed to put aside $60,000 due to a combination of new baby expenses and the cost of renting in a competitive market.

They weren’t fully aware of the different types of home loans and government incentives available to them.

With their limited knowledge of the home-buying process, they were unsure how to manage the various steps involved, particularly the financial side of things.

Our Approach

When Sarah and Luke reached out, our first priority was to gain a clear understanding of their needs, aspirations, and financial position.

We spent time discussing their goals:

• What kind of home were they looking for?
• How much of their funds were they willing to use?
• What were their long-term financial objectives?

We then moved forward with a detailed assessment of their financial situation, looking at their income, expenses, existing liabilities, and the $60,000 deposit they had saved.

With all this information, we provided them with a tailored plan that included:

• A loan scenario based on their $60,000 deposit and a 90% loan-to-value ratio (LVR)
• A cash flow forecast to help them understand the best way to manage loan repayments, and strategies for paying down the loan sooner.
• A proposed loan structure with a competitive interest rate and a flexible repayment plan.

Although Sarah and Luke were in a strong financial position, their deposit was slightly smaller than anticipated, which meant they needed to look into options that could reduce their out-of-pocket expenses.

We helped them apply for the First Home Guarantee (FHBG), which provided additional financial assistance and helped cover some of their upfront costs. 

Given that they were first-time buyers in New South Wales, Sarah and Luke also qualified for a stamp duty exemption, which was a significant help in easing their financial burden.

The Process

With financing options clearly mapped out, we moved ahead with the loan application process. Once pre-approval was secured, Sarah and Luke felt more confident as they began house hunting.

We provided regular updates on their loan status and gave them property market insights, including detailed property reports on comparable sales and price trends in the areas they were considering.

After a couple of months of searching, Sarah and Luke found a house that felt like home. It was a cosy three-bedroom property in a family-friendly suburb. They decided to make an offer, and we helped them navigate the next steps:

• Introducing them to a trusted conveyancer to review the sale contract and offer advice.
• Finalising their loan approval and ensuring all financial paperwork was in order for settlement.

The Outcome

Just a few months after starting the process, Sarah and Luke were thrilled to settle into their new home. With our help, they had successfully secured financing that allowed them to buy a property they loved without stretching their budget too thin.

Thanks to the thoughtful planning and expert advice throughout the process, Sarah and Luke were able to achieve their dream of homeownership without the usual stress and uncertainty. We provided them with the tools and knowledge they needed to confidently move forward with their purchase.

This case study underscores the value of having professional support when buying your first home. Sarah and Luke’s experience proves that with the right mortgage partner, first-time buyers can navigate the complexities of the market and make informed, confident decisions.

If you’re a first-time buyer, we’d be delighted to help you too. Get in touch with us at Zenith Home Loans to learn how we can assist you every step of the way.