Buy your first home with confidence.
Understand the process and your position.
A first home purchase involves the deposit, buying costs, possible government support, loan approval and settlement. Bharat Finance helps clients understand the steps and prepare their lending position.
What you need to know.
First home purchase is a major financial decision. Here are the key mechanics.
Deposit
Typically 5–20% of purchase price. 5% deposit requires lenders mortgage insurance (LMI). Larger deposit = lower LMI cost and potentially better rates.
Government support
First Home Owner Grant (state-based), stamp duty exemptions and concessions, and First Home Super Saver Scheme (withdraw superannuation contributions).
Borrowing capacity
Most first home buyers can borrow 80–95% of purchase price (LVR). Your capacity depends on income, expenses and existing debts.
Timeline
Pre-approval (1–2 weeks) → search (weeks–months) → offer (days) → full approval & settlement (8–12 weeks).
Budget for more than the purchase price.
Stamp duty, legal fees, building inspection, valuation and insurance add 3–10% to your total cost.
- Stamp duty: 1–5.75% depending on price and state (first home exemptions apply).
- Legal / conveyancing: $600–$1,200.
- Building inspection: $400–$800.
- Valuation: $300–$600 (lender pays or you do).
- Lenders mortgage insurance (LMI): $5,000–$50,000 for <20% deposit (added to loan).
- Pest inspection: $250–$500 (property dependent).
- Home insurance: Typically required before settlement.
Start your home ownership journey.
Bharat Finance helps first home buyers understand their likely borrowing position and navigate the lending process through to settlement.