Avoid These 7 Mistakes: First Home Buyer Checklist

As a pharmacy assistant taking your first steps into the property market, buying your first home can feel overwhelming. Having a comprehensive checklist ensures you make informed decisions and avoid common pitfalls that could cost you thousands of dollars.

Understanding Your Financial Situation

Before you start browsing properties, you need a clear picture of your financial position. This includes:

• Your current income and employment status
• Monthly expenses and existing debts
• Available savings for a deposit
• Your credit history and score

Your borrowing capacity will determine how much you can spend on a property. Lenders assess your ability to service a loan based on your income, expenses, and existing commitments. Understanding this early prevents disappointment when applying for a home loan.

Researching Government Support Programs

First time home buyer programs offer significant advantages for pharmacy assistants entering the property market. The Home Guarantee Scheme allows eligible buyers to purchase with as little as a 5% deposit without paying lenders mortgage insurance (LMI).

First home owner grants (FHOG) provide additional financial assistance, with amounts varying by state. These grants can help reduce the upfront costs of buying a home, making homeownership more accessible.

Other first time home buyer schemes worth investigating include:

• State-based stamp duty concessions or exemptions
• Shared equity schemes
• Regional home buyer assistance programs
• KeyStart and similar state-specific programs

Getting Pre-Approved for Your Home Loan

Obtaining pre-approval before house hunting provides several benefits:

• Confirms your borrowing capacity
• Shows sellers you're a serious buyer
• Speeds up the purchase process
• Locks in current interest rates for a specified period

When seeking pre-approval, you'll need to provide bank statements, payslips, and details of your financial situation. Having access to home loan options from banks and lenders across Australia increases your chances of finding suitable loan terms.

Comparing Interest Rates and Loan Features

Interest rates significantly impact your monthly repayments and total loan cost. Consider both variable interest rate and fixed interest rate options:

Variable Interest Rates:
• Rates can decrease, reducing repayments
• Access to offset accounts and redraw facilities
• Potential for interest rate discounts

Fixed Interest Rates:
• Certainty of repayments for the fixed period
• Protection against rate increases
• Budgeting becomes more predictable

When comparing packages, look beyond just the interest rate. Consider:

• Annual fees and charges
• Offset account availability
• Redraw facilities
• Extra repayment options
• Professional package discounts

Understanding Loan to Value Ratio (LVR)

The loan to value ratio represents the percentage of the property's value you're borrowing. A lower LVR typically means:

• Lower interest rates
• Reduced LMI costs or no LMI requirement
• More loan options available
• Stronger negotiating position

Most lenders require LMI when your LVR exceeds 80%. However, some professional packages for pharmacy workers may offer LMI waivers at higher LVRs.

Preparing Your Documentation

Having your paperwork organised streamlines the application process. Essential documents include:

• Recent payslips (usually last 2-3)
• Bank statements for all accounts (3-6 months)
• Tax returns and payment summaries
• Employment contract or letter
• Identification documents
• Details of existing debts and commitments

For pharmacy assistants considering investment properties in the future, maintaining good financial records now will help when you're ready for your first investment property.

Budgeting for Additional Costs

The property purchase price isn't your only expense. Budget for:

• Stamp duty (varies by state and property value)
• Legal fees and conveyancing
• Building and pest inspections
• Loan establishment fees
• Moving costs
• Immediate maintenance or improvements

Stamp duty can be substantial, particularly in major cities. First home buyers often receive concessions or exemptions, so research your state's specific benefits.

Choosing the Right Location and Property Type

Consider factors beyond the property itself:

• Proximity to work and transport
• Local amenities and services
• School zones if planning a family
• Future development plans for the area
• Rental potential if circumstances change

The property market varies significantly between locations. What you can afford in regional areas differs greatly from metropolitan markets.

Working with Professionals

Building a team of professionals ensures you make informed decisions:

• Mortgage broker specialising in healthcare professionals
• Conveyancer or solicitor
• Building inspector
• Buyer's agent (if required)
• Accountant for tax advice

Specialist home loans for pharmacists often provide better terms than standard home loans, making professional guidance valuable.

Planning for the Future

Consider how your first Home Loan fits into your long-term financial goals. This might include:

• Career progression and income growth
• Family planning
• Investment loan options for building wealth
• Refinancing opportunities

Some pharmacy assistants use their first home as a stepping stone, later converting it to an investment property when buying your next home.

Buying your first home represents a significant milestone in your financial journey. By following this checklist and seeking professional advice, you'll be well-positioned to make confident decisions and secure a property that meets your needs and budget.

Call one of our team or book an appointment at a time that works for you to discuss your home loan options and start your journey to homeownership.