Let’s make 2025 the ‘Year of Purchase!’
If you’ve been dreaming of buying property, there’s no better time to start preparing. To help you hit the ground running, we’ve put together a list of tips to guide you through the process.
Explore incentives
Buying property can feel overwhelming, but there’s help available if you know where to look. Incentives like the First Home Owner Grant (FHOG) or various exemptions, concessions, and reductions might be available to you. The FHOG, introduced on July 1, 2000, was designed to offset the impact of the GST on home ownership. This nationwide scheme is funded by states and territories, with eligibility criteria varying by location. If you’re a first-time buyer, this one-off grant could provide a helpful financial boost. Visit www.firsthome.gov.au, select your state or territory, and check your eligibility. You might be surprised at the opportunities waiting for you!
While you’re at it, don’t forget to look at the First Home Guarantee Scheme and Stamp Duty savings. The First Home Guarantee (FHBG) is an Australian Government program to help eligible buyers purchase a home sooner. Managed by Housing Australia, it’s part of the Home Guarantee Scheme. Normally, buyers with less than a 20% deposit must pay lenders mortgage insurance. With the FHBG, eligible buyers can secure a home with just a 5% deposit. Concessions and exemptions are also available to reduce the amount of transfer duty which can be a huge help to first home buyers.
If you’re unsure, speak to your mortgage broker to help. At Cherry Lending & Finance, we’re always looking for the best deals for you, so feel free to give us a call.
Don’t forget to budget
Saving for your dream home takes dedication, but a solid budget can make it manageable. Start by aiming for at least a 5% deposit, or more if possible. As part of your 2025 resolutions, take a closer look at your expenses. Identify areas where you can cut back, such as unused subscriptions or memberships. Every little saving brings you closer to your goal. Closing any Buy Now, Pay Later accounts is also a smart move to minimise unnecessary spending and stay on track. Skipping a few indulgences now can bring you closer to unlocking your future home.
Be careful of additional debt
If buying a home is your primary goal for 2025, avoid taking on extra debt. Car loans, personal loans, credit cards, and Buy Now, Pay Later schemes can all delay your progress. The more debt you carry, the harder it becomes to save for a deposit or secure financing. It can also have a substantial impact on your borrowing capacity. Stay focused on your property goal and think carefully before committing to new financial obligations. Trust me, it will all be worth it in the end.
Set up a separate bank account
Here’s another helpful tip: keep your monthly living expenses and salary credits in a separate account from your savings. If your loan-to-value ratio (LVR) exceeds 80%, you’ll likely need to provide a bank statement showing three months of savings history. Having your savings mixed with your everyday expenses may require you to share more detailed financial information with the lender.
Keep an eye on properties
Keep a close watch on properties in areas you’re interested in. Look at both listing prices and final sale prices to get a sense of market trends. For example, in some parts of Victoria, it’s currently a buyer’s market, meaning properties often sell for less than their listed prices in many areas. Staying informed about these fluctuations will help you identify opportunities and make confident decisions when the time is right.
Aim for a pre-approval
Finally, reach out to your mortgage broker to discuss getting a pre-approval. Having a pre-approval in place means you’ll be ready to act quickly when the perfect property comes along. It also gives you a clearer idea of your borrowing capacity, helping you focus on homes within your budget.
The more prepared you are the better your chances are of making the ‘Year of Purchase’ a reality.
Let’s make it happen!
A complementary service that streamlines the lending process
No matter where you are located across Australia, our dedicated team is prepared to assist you in achieving your financial goals. At Cherry Lending & Finance, we are committed to providing you with the support and guidance you need to thrive in your property and financial endeavours. If you’re confused about how to get a home loan, talk to us!
