Buying your first home as a Defence Force member is an exciting milestone, but understanding the timeline can help you prepare properly. The home buying process typically takes 6-12 weeks from application to settlement, though this can vary based on your financial situation and the property market conditions.
Getting Your Finances Ready (2-4 weeks)
Before you start house hunting, you'll need to assess your borrowing capacity. This involves:
• Gathering your financial documents including bank statements, payslips, and tax returns
• Understanding your loan to value ratio (LVR) and how it affects lenders mortgage insurance (LMI)
• Researching first time home buyer schemes available to Defence Force members
• Exploring the Home Guarantee Scheme and first home owner grants (FHOG) you may be eligible for
As a Defence Force member, you have access to specialised packages and benefits that civilian buyers don't. Working with a Home Finance & Mortgage Broker who understands military life can make a significant difference in identifying the right loan amount and terms for your situation.
Getting Pre-Approved (1-2 weeks)
Once your finances are organised, it's time to get pre-approved for your first Home Loan. This process involves:
• Completing the application process with your chosen lender
• Providing all required documentation
• Having your borrowing capacity assessed
• Receiving confirmation of your approved loan amount
Pre-approval gives you confidence when house hunting and shows sellers you're a serious buyer. Defence Loans can help you access Home Loan options from banks and lenders across Australia, ensuring you find terms that suit your military lifestyle.
House Hunting and Making an Offer (2-6 weeks)
With pre-approval in hand, you can start searching for properties within your budget. Consider:
• Location relative to your base or potential postings
• Whether you want a variable interest rate or fixed interest rate
• The potential for the property to become your first investment property if you're posted elsewhere
• Stamp duty costs in your state or territory
When you find the right property, you'll make an offer. If accepted, you'll typically have a cooling-off period before the contract becomes unconditional.
Finalising Your Home Loan (2-4 weeks)
After your offer is accepted, you'll need to:
• Organise a property valuation
• Finalise your loan documentation
• Arrange building and pest inspections
• Secure home insurance
• Consider whether you want an offset account to help reduce interest payments
Your Home Finance & Mortgage Broker will coordinate with lenders to ensure everything progresses smoothly. They have access to banks and lenders nationwide and can manage the streamlined application process on your behalf.
Settlement Day and Beyond
Settlement typically occurs 30-60 days after contracts are signed. On settlement day:
• Final loan funds are transferred to the vendor
• You receive the keys to your new home
• Your mortgage payments begin
After settlement, you might consider investment loan options if you're planning to expand your property portfolio or if your circumstances change due to posting requirements.
Special Considerations for Defence Force Members
Defence personnel have unique circumstances that can affect the home buying timeline:
• Deployment schedules may impact your ability to attend inspections or settlements
• Posting cycles might influence whether you're applying for a home loan as a primary residence or investment loan application
• Some lenders offer interest rate discounts specifically for Defence Force members
• You may have access to special first time home buyer programs not available to civilians
Working with a mortgage broker who specialises in Defence Force lending ensures these factors are properly considered in your timeline and loan structure.
Planning for Success
The key to a smooth home buying experience is preparation. Start organising your finances early, understand the various first time home buyer schemes available, and don't hesitate to seek professional guidance.
Remember that interest rates and lending criteria can change, so it's important to stay informed throughout the process. Your mortgage broker can provide updates on market conditions and help adjust your strategy if needed.
Buying a home is one of life's biggest financial decisions, but with proper planning and the right support, the timeline becomes much more manageable. Defence Force members have access to unique benefits and packages that can make homeownership more accessible – make sure you're taking advantage of every opportunity available to you.
Call one of our team or book an appointment at a time that works for you to discuss your home buying timeline and explore the loan options available to Defence Force members.
