Things to Know


How much deposit do I need to buy my first home?

This varies according to the type of loan you are taking out, but in general you should aim to save a deposit of between 10 and 20 per cent of the purchase price.

What are deposit bonds?

Deposit bonds act as a substitute for the cash deposit between signing a contract and settlement of the property. They are issued by insurance companies for a fee. At settlement, the purchaser is required to pay the full purchase price including the deposit.

How much can I borrow?

This depends on factors such as your income and deposit, but many lenders require a maximum of 90 per cent loan-to-valuation ratio (LVR), which means that you can borrow up to 90 per cent of the purchase price, but you will need to supply evidence you have saved at least five per cent of the value of the property (genuine savings).

What about the First Home Owner Grant?

This government assistance program provides you with a one-off payment to use toward the deposit for your first home. In NSW this scheme currently applies to new homes.

10 Steps to Buying a Home



Applying for a loan

Documents you will need:

  • Personal Identification –  current driver’s licence, birth certificate or passport
  • Property Information – contract of sale (if you have it)
  • Financial Statements – three months of bank statements
  • Liabilities – loan and credit card statements showing current balances
  • Proof of Income – three recent payslips, group certificate, latest tax return
  • Expenses – current budget


Other considerations

When choosing a home loan, keep in mind interest rates and your financial situation will change over time. Make sure your loan is flexible enough to change with you.

Features you might want to consider include:

  • The option to move from variable to fixed interest rates or split the loan between both.
  • An offset or line of credit account to help you use your income and savings to reduce the balance of your loan.
  • The ability to make extra repayments without penalty.
  • A redraw facility that gives you the flexibility to use your additional repayments as required.
  • The choice of making repayments on a weekly, fortnightly or monthly basis.
  • The ability to transfer your loan if you buy another property.