What's the first thing a first home buyer should do before even looking at properties?
Chat to a broker! You don't need to have your numbers figured out, that's our job. Every financial situation has its own quirks, and not every lender accepts the same things. At Tailored Finance Collective, we match you with the right financial pathway and make sure you're across every opportunity available to you before you even start scrolling realestate.com.au.
How much deposit do you really need in today's market?
Less than you think! With a guarantor, you can enter the market with 0% deposit. Outside of that, some buyers can get in with as little as 2% - 5% depending on their situation and eligibility. This is exactly why speaking to a broker before you start property hunting is so important, the answer is never one size fits all.
What is LMI in simple terms?
LMI stands for Lenders Mortgage Insurance, and despite the name, it doesn't protect you, it protects the bank. It's a one off premium charged when you borrow more than 80% of a property's value (i.e. you have less than a 20% deposit). Think of it as the lender's safety net if you were ever unable to repay your loan. The cost varies depending on your loan size and deposit amount, and it's either paid upfront or added onto your loan. It's not always a reason to hold off, sometimes paying LMI and entering the market sooner actually puts you ahead in the long run.
Is it always worth using government schemes?
The schemes and incentives available to first home buyers are genuinely fantastic, but they're not automatically the right fit for everyone. There are property price caps and owner occupier requirements attached to most of them, and depending on your future goals, those limitations might not align with what's actually best for your situation. Sometimes an investment purchase is a smarter first step. The schemes are an incredible tool, but they're one piece of a bigger picture, which is why we always look at the full picture before recommending a pathway.
With the latest changes, are first home buyers still able to buy close to the city, and what can they do to make it happen?
Absolutely, but it comes down to a mindset shift. Your first home is not your forever home. It's a stepping stone, and the buyers who get stuck are the ones who forget that. At Tailored Finance Collective, part of our process is helping clients align their expectations with reality, and that's not a negative thing, it's actually empowering. When you understand that this first purchase gets your foot in the door and builds equity you can leverage later, the options open right up.
How does having a buyer's agent alongside a broker help first home buyers build a strong team?
A broker and a buyer's agent complement each other. At Tailored Finance Collective, we handle the finance side, understanding your situation, mapping out your best pathway, and educating you on the process every step of the way. When it comes to boots on the ground, that's where a buyer's agent earns their stripes. They're working with selling agents and vendors daily, they have access to off market intel and specialist software, and they take the stress out of home opens, offer strategy, negotiations, and narrowing down the right property for you. Together, we create a smooth and supported experience that you'd otherwise be navigating solo, which creates a very different journey for you.
Tayla Phillips DipFMBM
Managing Director & Mortgage Broker