Buying or building your first home is an exciting milestone, but it can feel like a big task with so much to consider. The Cedar Woods team is here to make the journey smoother and provide the guidance you need to get started.
Let us help you take your first steps toward building your first home.
Saving for a House Deposit
Saving for a house deposit is one of the first challenges you’ll encounter. If you’re planning to finance through a bank or lender, a 20% deposit is often required to avoid Lenders Mortgage Insurance (LMI). However, there are options for smaller deposits, such as the First Home Guarantee Scheme, which allows you to enter the market with just a 5% deposit if you meet the eligibility requirements. Consulting a mortgage broker can help you understand these options and choose what’s best for your circumstances.
To save effectively, start by tracking your expenses for a few months. Review your spending habits and identify areas where you can cut back—small changes like reducing subscriptions or limiting dining out can add up. Consider placing your savings in a high-interest account or term deposit to make your money work harder.
Budgeting for Your First Home
Once you’ve started saving, the next step is setting a realistic budget for your new home. A good rule of thumb is to ensure your mortgage repayments are manageable within your monthly income. Factor in additional costs like stamp duty, legal fees, and insurance.
Consulting a mortgage broker is a great way to get clarity on how much you can borrow and what costs to expect. Professional advice can help ensure you’re budgeting for a home that aligns with your financial comfort.
Understanding Home Loan Options
It’s important to understand the different structures available when it comes to home loan options. The below are home loan terms you may come across and what they mean:
- Variable Rate Loans: Interest rates can fluctuate, potentially saving you money if rates drop or costing you more if the interest rates increase.
- Fixed Rate Loans: Lock in your rate for a set period to provide stability.
- Split Loans: Combine both fixed and variable features.
- Repayment Types: Decide between principal and interest repayments or interest-only repayments, depending on your financial situation.
If you’re feeling uncertain, a mortgage broker or financial advisor can help explain the options and guide you toward the best choice for your needs.
Government Grants and Incentives
First-home buyers in Queensland can take advantage of various government incentives to make entering the property market more affordable. Key programs include the First Home Owner Grant and the First Home (New Home) Concession or the First Home Vacant Land Concession. For more information on available grants and incentives, read our blog here.
Ready to take your first step toward homeownership?
If you’re looking for the perfect land community to build your first home, consider exploring Cedar Woods’ master plannedned communities – Sage in Burpengary, or Flourish in South Maclean. Both of our Queensland communities offer a range of options tailored to first-home buyers, with homesites that fit comfortably within government grant and incentive limits.
- Sage: A serene, master planned land community nestled in the heart of Burpengary. Enjoy lush green spaces, modern amenities, and tree-lined streets while embracing a balanced life with room to grow.
- Flourish: Discover Flourish, a boutique land community in South Maclean where natural beauty meets convenience. With close-knit connections and easy access to amenities, grow your way at Flourish.
Whether you’re just beginning your journey or ready to take the next step, the Queensland team is here to help. Explore Sage and Flourish to find the community that’s right for you. For more information, contact us today.
