Home loans

First Home Buyer Budgeting

The decision to become a homeowner requires a bit of pre-planning. It’s more than being fed up with your flat mates or tired of living with mum and dad, you need to consider;

Maintaining a pattern of saving

You will be required to demonstrate your savings, which includes bank statements to show good money management habits.

Are you a First Home Buyer with questions? Take a look at our Frequently Asked Questions.

Exhibiting a solid employment history

If you have just started a new job, it may not be the best time to be looking at finance for your new home, lenders have different requirements in regards to employment length. However, there are Low Doc product solutions for those who are self-employed or new to a job. 

Setting a realistic budget

Be wary of using some online loan calculators without guidance, this can set unrealistic expectations. Your loan repayments need to be realistic and manageable with life's ups and downs.

What Can I Afford?

While an online loan calculator may give you an idea of what you can borrow based on your income and basic outgoing expenses, another way to look at it is working out what you could afford to pay in repayments.

Working out the incoming funds is the easy part, the estimation of expenses is a bit more involved. The best way to get an accurate picture of all your current liabilities and general cost of living is to keep a diary of everything you spend over a fortnightly/monthly period, being sure to consider;

Rent and utilities

  • Rental costs
  • Electricity, gas, phone, Internet, Pay TV, mobile

Insurance and other loans

  • Car loan and insurance
  • Health and life insurance
  • Credit Cards

Groceries and transport

  • Food
  • Fuel
  • Car registration
  • Public transport

Entertainment

  • Social activities
  • Holidays

Personal and medical

  • Optometry
  • Medications
  • Specialist therapy
  • Hobbies/Sports
  • Education
  • Superannuation contributions

Saving for a deposit

Set your goals high when saving for a deposit, the more you have the better. A deposit of around 20% of the house (and land if buying new) price is preferable, with a focus on keeping your loan to value (LVR) ratio as low as possible to avoid lender’s mortgage insurance.

If getting into the property market and your own home feels like an unachievable dream, it might be a good idea to work with someone who specialises in personal savings plans. Budgeting help from Loan Studio budgeting partners 'Bills to Pay' will not only help you to save your deposit but also help you become more disciplined, which will become all the more important once you've purchased or built your home. Essentially Bills To Pay become your personal money managers, helping you to establish good savings habits and smart spending disciplines.

Key benefits for you;

  • Achieve your savings target sooner with a proven savings model,
  • Understanding where your money is going,
  • Your personal budget is professionally managed on a daily basis,
  • All your bills are paid on your behalf giving you peace of mind,
  • Ongoing reporting is available 24/7 via a secure web portal or mobile application.

BudgetingWorksV3

Budgeting Works

Loan Studio has partnered with Budgeting Works to deliver custom budgeting programs that will help you purchase your new home!

Budgeting Works helps individuals and families across Australia get to a healthier financial position through practical budgeting advice. Whether you want to stop living week to week or seeking that opportunity to move into your own home and need help saving that deposit, a tailored personal budget can be developed and managed on your behalf to help you achieve your financial goals sooner.

Aside from the more obvious commitments like rent and car loans, it can be daunting task to calculate your weekly living expenses. Budgeting Works can help you by structuring a sensible, realistic budget. Create your free* budget today and get morgage-ready!

Interested to learn more about budgeting? Watch an interview Kris Bondin now 

What Can I Afford?

While an online loan calculator may give you an idea of what you can borrow based on your income and basic outgoing expenses, another way to look at it is working out what you could afford to pay in repayments.

Working out the incoming funds is the easy part, the estimation of expenses is a bit more involved. The best way to get an accurate picture of all your current liabilities and general cost of living is to keep a diary of everything you spend over a fortnightly/monthly period, being sure to consider;

Rent and utilities

  • Rental costs
  • Electricity, gas, phone, Internet, Pay TV, mobile

Insurance and other loans

  • Car loan and insurance
  • Health and life insurance
  • Credit Cards

Groceries and transport

  • Food
  • Fuel
  • Car registration
  • Public transport

Entertainment

  • Social activities
  • Holidays

Personal and medical

  • Optometry
  • Medications
  • Specialist therapy
  • Hobbies/Sports
  • Education
  • Superannuation contributions

Saving for a deposit

Set your goals high when saving for a deposit, the more you have the better. A deposit of around 20% of the house (and land if buying new) price is preferable, with a focus on keeping your loan to value (LVR) ratio as low as possible to avoid lender’s mortgage insurance.

If getting into the property market and your own home feels like an unachievable dream, it might be a good idea to work with someone who specialises in personal savings plans. Budgeting help from Loan Studio budgeting partners 'Bills to Pay' will not only help you to save your deposit but also help you become more disciplined, which will become all the more important once you've purchased or built your home. Essentially Bills To Pay become your personal money managers, helping you to establish good savings habits and smart spending disciplines.

Key benefits for you;

  • Achieve your savings target sooner with a proven savings model,
  • Understanding where your money is going,
  • Your personal budget is professionally managed on a daily basis,
  • All your bills are paid on your behalf giving you peace of mind,
  • Ongoing reporting is available 24/7 via a secure web portal or mobile application.

Budgeting Works

Loan Studio has partnered with Budgeting Works to deliver custom budgeting programs that will help you purchase your new home!

Budgeting Works helps individuals and families across Australia get to a healthier financial position through practical budgeting advice. Whether you want to stop living week to week or seeking that opportunity to move into your own home and need help saving that deposit, a tailored personal budget can be developed and managed on your behalf to help you achieve your financial goals sooner.

Aside from the more obvious commitments like rent and car loans, it can be daunting task to calculate your weekly living expenses. Budgeting Works can help you by structuring a sensible, realistic budget. Create your free* budget today and get morgage-ready!

Interested to learn more about budgeting? Watch an interview Kris Bondin now 

To get you started we have collated all of the questions we have been asked by our first home buyer clients. Check out our First Home Buyer FAQs, or download our handy First Home Buyer Checklist.

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