Your guide to buying your first home

We know how difficult buying your first home can be. That's why we go to great lengths to help you on the journey. At BOQ, first home buyers can benefit from:

  • Speaking to the same person every step of the way
  • Access to competitive home loan rates across a range of products, to help you find the one to suit your needs
  • The ability to borrow up to 98% of the value of the property, inclusive of loan mortgage insurance

Step 1: Work out your budget

How much can I borrow and afford? 

Every home buying journey begins with a clear budget in mind. Use our simple tools to help you work out how much you can borrow, what your repayments might be and work out your budget. 

Should I get a conditional approval?

Obtaining a conditional approval is a great way of getting an actual estimate as to how much you can borrow and finding out whether you will be approved for a loan. It is also a great way of showing real estate agents that you are a serious buyer and can speed up the finance application process once you have signed the contract of sale.

Chat to us about obtaining a conditional approval at BOQ. We will assess your income and financial obligations and provide conditional confirmation as to how much you can borrow. This is valid for up to 3 months but can also be renewed.

 

How much deposit do I need?

The minimum, home loan deposit you should have is at least 5% of the purchase price of the property. However, Lenders Mortgage Insurance will apply if your deposit is less than 20%, which is a one-off fee that covers us against loss if you default on your repayments. This fee is added to your loan amount and allows you to borrow more than 80% of the property value for home loans.

 

Am I entitled to the first home owners grant? 

Government grants are a great way to receive financial assistance for buying your first home. However, depending on where you buy, your eligibility requirements and amount you may be entitled to varies from state to state. For more information on the first home owners grant, view our blog article here.

 

What are the costs of buying a home?

In addition to your home loan deposit, ensure you have also budgeted for the upfront costs that come with buying a home, which include:

Stamp Duty Use our Stamp Duty Calculator to work out how much stamp duty will be payable on the purchase of your home.
Lender's Mortgage Insurance Required if you have less than 20% home loan deposit.
Legal fees For completing conveyancing and title searches on your home.  This cost varies depending on the Conveyancer and the property searches you require, but can be around $1,500 - $2,500.
Building and Pest Inspection A report on the structure and condition of your home.  This cost varies depending on the Building and Pest Inspector, but can be around $400 - $700.
Home and Contents Insurance Have peace of mind about your biggest asset. See our Home and Contents Insurance options.  
Property Valuation An independent valuation of your home.  Some of our home loan products offer a free residential valuation.  Enquire with your lender about valuation costs.
Moving Costs Hiring removalists or a truck to help you move into your new home.  

Step 3: Choose your first home loan

Choosing the right first home loan is just as important as finding the right first home for you. Your home loan needs to have all the features that suit your personal circumstances and those that will help you pay off your home sooner.

Whether you have a clear idea on the home loan you want or you would like to speak to an expert on your options, our home loan experts will recommend the best home loan for your individual circumstances.

Key home loan features

Interest rate

Choose between the flexibility of a variable rate or the certainty of fixed loan repayments.

Mortgage offset

Reduce the interest you pay on your loan by keeping your savings in a mortgage offset account.

Redraw facility

Have access to extra repayments on your home loan when you need it.

Additional repayments

Depending on which loan product you choose, you may be able to make additional repayments without any penalty and pay off your home loan sooner.

Flexible repayments

Make weekly, fortnightly or monthly repayments to suit your pay cycle and budget.

 

Our popular home loans for first home buyers

Our most popular low rate loan, packed with features

Clear Path Variable Home Loan

If you're looking for a fully featured, cheap home loan with a low rate, our Clear Path Variable Rate Home Loan is for you!

  • Owner occupier and investor options available
  • Mortgage offset
  • Flexible repayments

Know what your repayments are for peace of mind

Fixed Rate Home Loan

A fixed rate home loan gives you the certainty of knowing exactly what your repayments will be for up to 5 years, while protecting yourself against any potential interest rate rises.

  • Owner occupier and investor options available
  • Great interest rates across our range of terms
  • Principal and interest, or interest only repayments

Step 4: Buy your first home

Once you've found your first home and have reached an agreement with the seller, the settlement process begins. On settlement day, your legal and financial representatives will ordinarily meet with the seller's representatives to transfer the ownership of the property from the seller to the buyer. The settlement date is set in the contract of sale, and is typically between 30-90 days. 

To prepare for settlement, you'll likely need to do the following:

  1. Contact a solicitor or conveyancer to review your contract of sale before you sign it
  2. Return your signed contract of sale to the seller or the seller's agent
  3. Speak to your lender to start your home loan application. Ensure you have all your necessary documentation
  4. Speak to your solicitor or conveyancer about requesting any property searches you may want or need
  5. Organise a building and pest inspection
  6. Ensure you have enough funds to cover the property settlement and solicitor’s fees
  7. Organise your final inspection of the property.  This is usually done on the day of settlement or close to it
  8. Collect your keys on settlement day and celebrate your new home

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First home owner articles

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