Unlock the Secrets to Preparing for Your First Property

Getting Started on Your Property Purchase Journey

Preparing to buy your first home is an exciting milestone, particularly for current and former Australian Defence Force members who may have unique circumstances to consider. Whether you're stationed at a base or recently transitioned to civilian life, understanding the preparation process can make a significant difference to your outcome.

The journey to buying your first home starts well before you begin attending open homes or making offers. It's about getting your finances in order, understanding what you can afford, and knowing which programs and schemes are available to help you achieve your property goals.

Understanding Your First Home Buyer Budget

Before you start looking at properties, you need to establish a realistic first home buyer budget. This involves more than just knowing how much you can borrow – it's about understanding all the costs involved in purchasing property.

Your budget should account for:

• Deposit requirements (typically ranging from a 5% deposit to 20% of the property value)
• First home buyer stamp duty concessions available in your state
• Conveyancing and legal fees
• Building and pest inspections
• Moving costs
• Ongoing expenses like council rates, insurance, and maintenance

As an ADF member, you may have access to specific benefits that can help stretch your budget further. Many lenders offer interest rate discounts for Defence Force personnel, which can save you thousands over the life of your loan.

First Home Buyer Eligibility and Government Schemes

Understanding first home buyer eligibility criteria is crucial. Several government initiatives exist to help first home buyers enter the market:

First Home Loan Deposit Scheme: This program allows eligible first home buyers to purchase a property with a low deposit – as little as 5% – without paying Lenders Mortgage Insurance (LMI). For ADF members, this combines well with No LMI Loans for ADF Members that some lenders offer to Defence personnel.

Regional First Home Buyer Guarantee: If you're considering purchasing in a regional area, this scheme provides similar benefits to the standard guarantee but with expanded location options.

First Home Owner Grants (FHOG): Each state and territory offers first home owner grants with varying amounts and eligibility requirements. These grants typically apply to new homes or substantially renovated properties.

First Home Super Saver Scheme: This allows you to save for your deposit through your superannuation fund, with potential tax benefits.

Creating Your First Home Buyer Checklist

A comprehensive first home buyer checklist helps you stay organised throughout the purchase process. Here's what you should include:

1. Review your credit history: Check your credit score and address any issues before you apply for a home loan
2. Save your deposit: Aim for at least 10% deposit plus additional funds for costs. If family can assist, explore gift deposit options
3. Research Home Loan options: Compare different products including fixed interest rate and variable interest rate loans
4. Understand loan features: Learn about offset account benefits and redraw facilities
5. Get pre-approval: Obtaining pre-approval shows sellers you're a serious buyer
6. Organise your documents: Gather payslips, tax returns, bank statements, and ADF-related documentation

Choosing the Right Home Loan Application Strategy

When you're ready to apply for a home loan, understanding your options is vital. ADF members often have access to low deposit options that civilian buyers don't.

Interest Rate Considerations

Deciding between a fixed interest rate and variable interest rate (or splitting between both) depends on your circumstances:

• Fixed rates provide certainty with consistent repayments for a set period
• Variable rates offer flexibility and typically include features like offset accounts
• Split loans give you the benefits of both approaches

ADF members frequently receive interest rate discounts from certain lenders, which can represent substantial savings over time.

Deposit Options for ADF Members

While many first home buyers aim for a 20% deposit to avoid Lenders Mortgage Insurance (LMI), ADF members have alternative pathways:

• 5% Deposit Scheme for ADF Members
• Low Deposit Loans for ADF Members
• LMI waivers available exclusively to Defence Force personnel

Some lenders will even accept a 10% deposit from ADF members without LMI, making home ownership more accessible sooner.

Navigating Your First Home Loan Application

The first home loan application process can seem overwhelming, but breaking it down into steps makes it manageable:

Documentation Required

For your first home loan application, you'll typically need:

• Proof of identity (driver's licence, passport)
• Proof of income (payslips, tax returns, ADF payment summaries)
• Bank statements showing savings history
• Details of existing debts and commitments
• Information about the property you wish to purchase

The Role of Pre-Approval

Securing pre-approval before you start house hunting gives you a clear understanding of your borrowing capacity. It also demonstrates to vendors and real estate agents that you're a genuine buyer with finance ready to proceed.

Making the Most of Your Defence Force Benefits

Working with a specialist mortgage broker who understands Defence Force circumstances can uncover opportunities you might not find on your own. Home Loans for ADF Members often come with additional benefits beyond standard products.

Consider factors unique to military life:

• Deployment schedules and how they affect settlement timing
• Potential for relocation and whether you might need to rent the property later
• Allowances and how lenders assess your income
• Special lending criteria for Defence personnel

Taking Your Next Steps

Preparing for your first property purchase requires planning, research, and the right support. As an ADF member, you have access to specific benefits and schemes designed to help you achieve home ownership sooner.

Whether you're exploring low deposit options, need guidance on government schemes, or want to understand your borrowing capacity, working with specialists who understand Defence Force circumstances makes a real difference to your outcome.

Call one of our team or book an appointment at a time that works for you. We'll help you create a tailored strategy for your first property purchase that takes full advantage of the benefits available to ADF members.