The Easiest Way to Buy a Semi-detached Home First

Understanding Semi-detached Properties for First Home Buyers

If you're serving or have served in the Australian Defence Force and you're thinking about buying your first home, a semi-detached property could be an excellent option. These homes offer a middle ground between apartments and standalone houses, providing more space and privacy than a unit while typically costing less than a detached home.

Semi-detached homes share one common wall with a neighbouring property, which means you'll have your own front and back yard spaces, separate entrances, and often more living area than a townhouse or apartment. For first home buyers with a limited budget, this property type can help you enter the market sooner while still enjoying many benefits of house living.

First Home Buyer Eligibility and What You Need to Know

Before you start house hunting, it's worth understanding your first home buyer eligibility. As an ADF member, you have access to several advantages that civilian first home buyers don't, particularly when it comes to No LMI Loans for ADF Members.

To qualify as a first home buyer, you generally need to:

• Be an Australian citizen or permanent resident
• Never have owned property in Australia before
• Plan to live in the property as your principal place of residence
• Meet income and property price thresholds for government schemes

Defence Force members often face unique challenges when buying your first home, including frequent relocations and deployment schedules. Having a mortgage broker who understands these circumstances can make the process considerably more manageable.

Home Loan Options Available to ADF Members

When purchasing a semi-detached home, you'll need to consider your home loan options carefully. The interest rate you secure will significantly impact your repayments over the life of your loan.

You can choose between:

Fixed Interest Rate: This locks in your rate for a set period (typically 1-5 years), providing certainty about your repayments regardless of market changes.

Variable Interest Rate: This fluctuates with market conditions and often comes with additional features like an offset account or redraw facility.

Many first home buyers opt for a split loan, combining both fixed and variable portions to balance security with flexibility. As an ADF member, you may also have access to interest rate discounts through specialist lenders who recognise the stability of Defence Force employment.

Low Deposit Options and Government Schemes

One of the biggest hurdles for first home buyers is saving a deposit. Traditionally, you'd need 20% of the property price to avoid Lenders Mortgage Insurance (LMI). However, several schemes can help you purchase sooner:

First Home Loan Deposit Scheme: This government initiative allows eligible first home buyers to purchase with a 5% deposit without paying LMI. Places are limited and allocated annually.

Regional First Home Buyer Guarantee: Similar to the above but specifically for properties in regional areas, this can be particularly relevant if you're stationed outside major cities.

ADF members have additional options through 5% Deposit Scheme for ADF Members and Low Deposit Loans for ADF Members. Some lenders offer 10% deposit options specifically for Defence Force personnel without the standard LMI charges.

You can also consider a gift deposit from family members to boost your savings, though lenders will need documentation proving it's genuinely a gift rather than a loan.

First Home Buyer Grants and Stamp Duty Concessions

Depending on which state or territory you're purchasing in, you may be eligible for first home owner grants (FHOG) and first home buyer stamp duty concessions. These vary by location:

• Some states offer cash grants for purchasing new properties
• Most states provide stamp duty exemptions or reductions for first home buyers below certain price thresholds
• Regional areas sometimes offer additional incentives

These concessions can save you thousands of dollars, so it's worth researching what's available in your area. Given that ADF members might be stationed anywhere across Australia, understanding state-specific benefits is particularly important.

Getting Your First Home Loan Application Ready

When you're ready to apply for a home loan, preparation is key. Your first home loan application will be smoother if you have these items ready:

1. Proof of identity documents
2. Recent payslips (typically last 3 months)
3. Bank statements showing your savings history
4. Details of any debts or financial commitments
5. Proof of deposit source

Getting pre-approval before you start seriously looking at properties gives you a clear first home buyer budget and shows sellers you're a serious buyer. Getting loan pre-approval typically takes a few days to a couple of weeks, depending on your circumstances.

Your First Home Buyer Checklist

To keep yourself organised throughout this process, here's a first home buyer checklist:

• Research suburbs and property types within your budget
• Check your credit score and address any issues
• Calculate your borrowing capacity including all income and expenses
• Save your deposit and keep records of where funds came from
• Research first home buyer grants in your state
• Get pre-approval for your first home loan
• Engage a conveyancer or solicitor
• Arrange building and pest inspections
• Finalise your home loan application
• Organise property insurance

Additional Features to Consider

When comparing home loan options, look beyond the interest rate. Features like an offset account can help you pay off your mortgage faster by offsetting your savings against your loan balance, reducing the interest charged. A redraw facility allows you to access extra repayments you've made if you need funds for emergencies.

You might also want to explore the First Home Super Saver Scheme, which allows you to save for your deposit inside your superannuation, potentially benefiting from tax advantages.

The Defence Loans Advantage

As specialists in Home Loans for ADF Members, we understand the unique circumstances Defence Force personnel face. We work with lenders who recognise the stability of Defence Force employment and offer tailored products with benefits like LMI waivers and interest rate discounts.

Whether you're looking at a semi-detached home in a capital city or a regional area near your base, we can help you understand your options and find a solution that works for your situation.

Purchasing your first semi-detached home is an exciting milestone. With the right preparation, understanding of available schemes, and professional guidance, you can make informed decisions that set you up for long-term success.

Call one of our team or book an appointment at a time that works for you to discuss your first home loan options.