Home Loans

The deposit required for your first home can vary depending on several factors, but many first home buyers can secure a loan with as little as 5% of the property's purchase price as a deposit. However, having a 20% deposit can help you avoid Lenders Mortgage Insurance (LMI), which can add thousands to your loan costs. For example, on a $500,000 property, a 5% deposit would be $25,000, while a 20% deposit would be $100,000. There are also government schemes available that may help reduce your deposit requirements. Our team can assess your financial situation and explain all available options, including first home buyer grants and schemes that might apply in your state, helping you determine the most suitable deposit amount for your circumstances.

FHOG is a specialist finance broker dedicated to helping first home buyers across Victoria, New South Wales, and Queensland achieve their property ownership dreams. We understand that purchasing your first home can feel overwhelming, which is why we provide personalised guidance throughout the entire lending process. Our experienced team works closely with you to understand your financial situation, assess your borrowing capacity, and connect you with suitable lenders. We handle the complex paperwork and communication with banks, allowing you to focus on finding your perfect home while we take care of securing the right home loan for your circumstances.

Each state offers different first home buyer incentives and grants. In Victoria, there's the First Home Owner Grant and potential stamp duty concessions or exemptions. New South Wales provides the First Home Buyer Assistance Scheme, which can include stamp duty relief and the First Home Owner Grant for eligible buyers. Queensland offers similar support through their First Home Owner Grant and potential stamp duty concessions. Additionally, there's the federal First Home Guarantee scheme, which allows eligible buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance. The eligibility criteria, grant amounts, and property price caps can change, so it's important to get current information. Our team stays updated on all available schemes and can help you understand which grants you may qualify for and how to apply for them.

As a first home buyer, you'll typically need several key documents to support your home loan application. These include recent payslips (usually the last two), your most recent group certificate or tax return, bank statements from the past three to six months, and identification such as your driver's licence or passport. If you're self-employed, you may need additional documentation including business financial statements and tax returns for the past two years. We also recommend having details of any existing debts, credit cards, or personal loans ready. Don't worry if you're unsure about what's required - our team will provide you with a comprehensive checklist tailored to your specific situation and help you gather everything needed for a successful application.

The home loan application process typically takes between two to six weeks from submission to final approval, though this can vary based on several factors. Initially, we can often provide you with a pre-approval within a few days to a week, which gives you confidence when house hunting. Once you've found a property and submitted a full application, lenders usually take 7-14 business days for standard applications. However, more complex situations involving self-employment, multiple income sources, or unique property types may take longer. External factors like property valuations, council searches, and busy periods for lenders can also affect timing. We work diligently to ensure your application is complete and accurate from the start, which helps avoid delays. Throughout the process, we'll keep you informed of progress and liaise with lenders on your behalf to help move things along efficiently.

If your initial application is declined, it's not the end of your home buying journey. Loan rejections can happen for various reasons, including insufficient income, poor credit history, inadequate deposit, or the lender's assessment of your expenses. The first step is understanding exactly why the application was declined, which we help you obtain from the lender. Once we know the reasons, we can address any issues and explore alternative options. This might involve approaching different lenders who have varying assessment criteria, working on improving your financial position, or adjusting your property search parameters. Some lenders may also provide conditional approval with specific requirements that need to be met. We work with a panel of lenders, so if one isn't suitable, we can often find another that may view your application more favourably. Remember, each lender has different policies and assessment methods.

Beyond your deposit, there are several additional costs to consider when buying your first home. Stamp duty is usually the largest additional cost, though first home buyers may be eligible for concessions or exemptions depending on the property value and state. Legal fees for conveyancing typically range from $1,200 to $2,000, while building and pest inspections can cost $400 to $800. You'll also need to budget for loan application fees, valuation costs, and potentially Lenders Mortgage Insurance if your deposit is less than 20%. Moving costs, utility connections, and immediate home improvements should also be considered. Home and contents insurance is essential and should be arranged before settlement. As a general guide, budget for additional costs of 3-5% of the property purchase price on top of your deposit. We provide detailed cost breakdowns during our consultation process, helping you understand all expenses involved so there are no surprises during your purchase journey.

Getting pre-approval before you start seriously looking at properties is highly recommended for first home buyers. Pre-approval gives you a clear understanding of your borrowing capacity, helping you focus on properties within your budget and avoid disappointment. It also demonstrates to real estate agents and vendors that you're a serious buyer with confirmed finance, which can be crucial in busy property markets. Pre-approval can give you confidence at auctions or when making offers, as you know your financial limits and can act quickly when you find the right property. The process involves a comprehensive assessment of your financial situation, and while it's not a guarantee of final approval, it provides strong indication of your borrowing capacity. Pre-approvals are typically valid for three to six months, giving you time to find the right property. We can help you obtain pre-approval and explain any conditions that may apply.

Yes, self-employed individuals and those with irregular income can certainly obtain home loans, though the process may require additional documentation and consideration. Lenders typically want to see evidence of consistent income over time, usually requiring two years of tax returns and business financial statements. If you're a contractor or have commission-based income, we can help present your income in the most favourable way to lenders. Some lenders specialise in working with self-employed borrowers and understand the nature of variable income. We may also explore options like low-doc loans if traditional documentation is challenging. The key is working with someone who understands how to package your application effectively. Our experience with various lender policies means we can identify which lenders are most likely to approve your application and guide you through the specific requirements for your situation.

Determining your readiness for home ownership involves assessing both your financial position and personal circumstances. Financially, you should have a stable income, a deposit saved, and the ability to service mortgage repayments comfortably alongside your other expenses. Consider whether you can handle potential increases in repayments and have emergency funds for unexpected costs. Your credit history should be in good shape, with no recent defaults or excessive credit applications. From a lifestyle perspective, consider your job security, whether you're planning to stay in the area for several years, and if you're prepared for the responsibilities of property ownership including maintenance and repairs. It's also worth considering your current rental situation and whether the timing aligns with your personal goals. We can help you assess your financial readiness by reviewing your income, expenses, and borrowing capacity, providing clarity on whether now is the right time for your property purchase.