First Home Buyer's Guide to Property Purchase Preparation

Understanding Your Position as a First Home Buyer

As a community pharmacist preparing to purchase your first property, proper preparation can make the difference between a successful purchase and missed opportunities. Buying your first home requires careful planning, understanding your financial position, and knowing which home loan options are available to you.

The journey to homeownership begins well before you start attending open inspections. Taking time to understand first home buyer eligibility criteria, available grants, and your borrowing capacity will position you for success in the property market.

Building Your First Home Buyer Budget

Creating a comprehensive first home buyer budget is your foundation. This budget should account for:

• The property purchase price and deposit amount
• First home buyer stamp duty concessions in your state
• Lenders Mortgage Insurance (LMI) if applicable
• Conveyancing and legal fees
• Building and pest inspection costs
• Ongoing costs including council rates, insurance, and utilities

As a pharmacist, your stable income and employment status work in your favour when lenders assess your application. Understanding how much you can comfortably borrow without overextending yourself is critical to long-term financial wellbeing.

Low Deposit Options for Pharmacists

One of the biggest hurdles for first home buyers is saving a deposit. Traditional wisdom suggests a 20% deposit, but several low deposit options exist:

5% Deposit Options

The First Home Loan Deposit Scheme allows eligible first home buyers to purchase with just a 5% deposit without paying LMI. The Regional First Home Buyer Guarantee specifically supports purchases in regional areas with similar benefits.

10% Deposit Options

Many lenders offer home loan options requiring only a 10% deposit. While this typically attracts LMI, the cost may be worth it to enter the market sooner. Some lenders also provide LMI waivers for pharmacists, reducing your upfront costs significantly.

Gift Deposits

A gift deposit from family members can help boost your savings. Most lenders accept genuine gifts as part of your deposit, though documentation requirements apply.

First Home Buyer Grants and Concessions

Various government incentives can reduce the cost of buying your first home:

First Home Owner Grants (FHOG)

Each state and territory offers first home owner grants with varying eligibility criteria and amounts. These grants typically apply to new or substantially renovated properties.

Stamp Duty Concessions

First home buyer stamp duty concessions can save you thousands of dollars. The concession amount depends on your state and the property purchase price.

First Home Super Saver Scheme

The First Home Super Saver Scheme allows you to save money for your deposit inside your superannuation fund, taking advantage of the concessional tax treatment.

Choosing the Right Interest Rate Structure

Understanding interest rate options is crucial when you apply for a home loan:

Variable Interest Rate

A variable interest rate fluctuates with the market. Benefits include:

• Potential interest rate discounts as rates fall
• Access to features like offset accounts and redraw facilities
• Flexibility to make extra repayments
• No break fees if you refinance or sell

Fixed Interest Rate

A fixed interest rate locks in your rate for a set period (typically 1-5 years). This provides:

• Certainty in your repayments
• Protection if rates increase
• Easier budgeting for your household expenses

Split Loans

Many pharmacists choose to split their loan between fixed and variable portions, balancing certainty with flexibility.

Essential Features to Consider

Offset Account

An offset account is a transaction account linked to your home loan. The balance reduces the interest charged on your loan, potentially saving thousands over the loan term.

Redraw Facility

A redraw facility allows you to access extra repayments you've made on your loan. This provides financial flexibility for unexpected expenses.

The Pre-Approval Process

Obtaining pre-approval before property hunting offers significant advantages:

1. Know your borrowing capacity with certainty
2. Shop with confidence at auctions and private sales
3. Demonstrate to vendors that you're a serious buyer
4. Identify and address any issues with your first home loan application early

Pre-approval typically lasts 90 days and doesn't obligate you to proceed with that lender.

Your First Home Buyer Checklist

Before submitting your first home loan application, ensure you have:

• Reviewed your credit report and addressed any issues
• Gathered pay slips, tax returns, and employment verification
• Saved your deposit and documented its source
• Researched properties in your target areas
• Understood your preferred loan features and structure
• Calculated your ongoing repayment capacity
• Researched first home buyer grants you're eligible for
• Engaged a conveyancer or solicitor
• Organised building and pest inspections for your chosen property

Why Professional Guidance Matters

While researching home loan options is valuable, working with brokers who understand the pharmacy profession brings distinct advantages. At Pharmacist Home Loans, we specialise in supporting community pharmacists through their property purchase journey.

We understand the unique aspects of pharmacy employment, whether you're a permanent employee, contractor, or pharmacy owner. This expertise means we can present your application in the strongest possible light to lenders and identify opportunities specific to your profession, including reduced or waived LMI and preferential interest rate discounts.

Purchasing your first home represents a significant financial commitment and personal milestone. With proper preparation, understanding of available first home buyer eligibility criteria, and the right support, you can approach this process with confidence.

Ready to start your property purchase preparation? Call one of our team or book an appointment at a time that works for you. We'll help you understand your home loan options and create a strategy tailored to your circumstances as a pharmacist.