First Home Buyers

Ready to buy your first home?

From savings plans to explaining home loan options, government grants and costs along the way, Allora Finance is here to help clients achieve that goal.

It’s super exciting to be thinking about buying your first property, but it can also feel overwhelming with so many questions and so much BS (bank stuff) to cut through - we know, we’ve been there! Think of Allora Finance as your big sister and cheerleader - here to guide you through it all.

Borrowing capacity factors

There are multiple factors that affect any client's borrowing power. The following are some key factors that help answer the question of how much money can I borrow?:

• Personal circumstances (single or couple, kids or dependants)

• Household income

• Existing liabilities

• Living expenses and spending habits

• Credit history

At Allora Finance, we cover all of this and more during our first chat. 

Deposit and additional costs

Think of your deposit as your ‘ticket to play’ - it’s the amount of cash you have available to contribute to the purchase of your new property. As a general rule you’ll need cash available for:

• Deposit - generally a minimum of 5% of the purchase price

• Application fees including your mortgage registration and stamp duty

• Conveyancing and moving home

If you’re receiving a gift of cash as all or part-of your deposit, that’s definitely acceptable but let’s talk specifics before you lock in the game plan. If your deposit is between 5-10% of the purchase price, you’ll typically need to show you’ve held that savings balance for at least three months, though there are a few exceptions.

Purchase goal

It’s helpful to come to any discussion with the team, with a goal in mind - your ideal property type, location and approximate price. Something like ‘I’d love a unit in Adelaide for $600,000’, will help us figure out how ‘on track’ you are.

When you’re not quite there, Allora Finance brokers will make recommendations to help our clients get to where they want to be - whether it’s guidance on paying off a personal loan, growing savings (deposit), or increasing household income.

What help is available?

Once we understand our clients goals and personal circumstances, we look at ways to leverage government and lender grants, schemes and promos, to help them get into their first home quicker and/or cheaper. This might include an LMI waiver, stamp duty concessions, or negotiating the interest rate down - we’ll do the research and find the opportunities available to our clients.

Benefits of a guarantor

A common pathway for Australians buying their first home is using a guarantor. This is usually an immediate family member who offers an asset for the guarantee. A guarantor typically helps when your deposit is less than 20% of the purchase price, and helps you avoid paying Lenders Mortgage Insurance (LMI).

A guarantor generally won’t help increase borrowing capacity or make repayments. If you need extra help with repayments, we can consider adding that family member as an applicant. Guarantor eligibility rules apply, mostly about the asset they’re using and their personal circumstances.