Buying your first home

Buying your first home is an exciting milestone, especially for members of the Australian Defence Force (ADF). Securing a place to call your own is a significant step and one that comes with its own set of challenges and opportunities. Defence Loans is here to assist ADF members in understanding the complexities of buying a home, providing tailored advice and services to make the process as smooth as possible. Our expertise in Home Finance & Mortgage Brokers allows you to access Home Loan options from banks and lenders across Australia, ensuring you find the right fit for your needs.

When embarking on the journey of buying your first home, understanding your borrowing capacity is crucial. This determines how much you can borrow and influences the type of property you can consider. Our team helps you assess this by examining factors such as your financial situation, income, and existing debts. Once you have a clear picture of your borrowing capacity, you can confidently explore the property market. With access to banks and lenders nationwide, we provide a diverse range of options to suit different financial needs. Whether you're interested in a variable interest rate or a fixed interest rate, we guide you through the options available.

Applying for a home loan involves several steps, starting with getting pre-approved. This step provides a clear indication of your loan amount and strengthens your position when making offers on properties. The application process can be daunting, but with our streamlined application process, we make it straightforward. We assist with gathering necessary documents such as bank statements and guide you through the intricacies of the loan to value ratio (LVR). Understanding LVR is essential as it impacts whether you'll need lenders mortgage insurance (LMI), which is required if your deposit is less than 20% of the property's value.

First time home buyer programs and schemes are valuable resources for ADF members buying their first home. These include first home owner grants (FHOG) and interest rate discounts, which can significantly reduce costs. Our team ensures you are aware of all available benefits and packages, helping you take advantage of these opportunities. Additionally, understanding stamp duty and how it affects your purchase is vital. Some states offer concessions for first-time buyers, potentially saving you thousands.

For those considering their first investment property, Defence Loans also provides support with investment loan options. The process for an investment loan application differs slightly from a standard home loan, but we offer guidance every step of the way. Investment properties can be a wise financial decision, providing rental income and potential capital growth. Our expertise ensures you are well-informed about the benefits and risks involved.

As you approach buying your first home, it's important to consider additional features that can enhance your loan experience. An offset account, for example, can reduce the interest payable on your loan by offsetting it against the balance in your savings account. This can lead to significant savings over time.

Buying your first home is a journey filled with decisions and details. At Defence Loans, we are dedicated to helping ADF members navigate this process with confidence and clarity. By offering access to a wide range of Home Loan options from banks and lenders across Australia, we ensure that you have the best possible start on your home-buying journey. Whether you're applying for a home loan or considering an investment property, our team is here to support you every step of the way. Reach out to us today to explore how we can assist you in securing your first home.

Step 1: Initial Consultation

Your property journey begins with a comprehensive discussion with your Defence Home Loans broker who understands the unique circumstances of ADF members. Whether you're purchasing your first home, investing, or refinancing, your broker will understand your goals, financial situation, and ADF-specific conditions such as postings or deployment income. This is when you'll discuss your borrowing capacity and explore loan options from over 2,000 products across major banks, smaller lenders, and non-bank lenders. Your broker will also walk you through interest rates, LVR, and any possible LMI considerations.

Step 2: Financial Assessment

The next step involves your broker conducting a thorough evaluation of your complete financial position, including ADF allowances and benefits that other brokers might overlook. This includes reviewing your regular income, deployment pay, allowances, bank statements, assets, liabilities, credit history, and savings patterns. Your broker will then calculate your true borrowing capacity, helping you understand how much you can afford and what your monthly repayments might look like. Your broker will also assess whether you qualify for interest rate discounts, government schemes, or ADF-specific benefits like the Defence Service Home Ownership Assistance Scheme.

Step 3: Loan Selection

Based on your financial situation and military lifestyle requirements, your broker will research and present a curated list of loan options from lenders who understand ADF circumstances. These loans will be tailored to meet your specific needs, whether you're looking for fixed rates, variable rates, or flexible options with offset accounts that work with irregular deployment income. Your broker will explain the loan-to-value ratio (LVR) and help you weigh the pros and cons of each option, ensuring you make an informed decision that accommodates potential postings and career changes.

Step 4: Pre-Approval

Getting pre-approved gives you a clear understanding of your budget and strengthens your negotiating position, especially important if you're buying where you're not currently stationed. Your broker will guide you through this process using our online technology, ensuring all necessary documents including tax returns, payslips, and allowance statements are submitted efficiently. Pre-approval gives you confidence to act quickly in any Australian property market and avoid missing out on your desired property, even if deployed overseas.

Step 5: Application Submission

Once you've selected the right loan, your broker will manage the entire application process, handling all lender communications regardless of where you're stationed. They will submit your application and ensure all required documents are provided, including ADF-specific paperwork such as proof of allowances, deployment income, or service history. Your broker will maintain regular communication with you and the lender, addressing questions and ensuring a smooth process that works around your military commitments.

Step 6: Loan Approval & Settlement

After your loan is approved, your broker will assist in reviewing the final loan agreement, ensuring all terms including interest rates, fees, and repayment schedules are clearly understood. They will help set up your repayment structure to accommodate ADF pay cycles and assist with arranging necessary insurance such as home loan protection. Once settlement is confirmed, your property ownership is complete, and you'll receive access to your new property, whether you can move in immediately or need to arrange tenants due to postings.

Step 7: Ongoing Support

Once your loan is settled, Defence Home Loans remains available for comprehensive ongoing support throughout your military career and beyond. This includes advising on managing loan repayments during deployments, exploring refinancing opportunities as circumstances change, or helping you leverage home equity for future investments. Your broker's relationship doesn't end at settlement—they'll guide you through postings, career transitions, and your entire property ownership journey as a current or former ADF member.