Saving for your first home? Here’s what to consider

So, you’ve decided you’d like to own your first home. Navigating the buying process can be daunting at first and without some guidance, it can result in some hefty outlays that you didn’t account for!

We take a look at some of the important financial components to consider when saving, to ensure all bases are covered when the time comes to make the big purchase.


Young couple signing mortgage application for first home


Borrowing Power

It’s a good idea to know how much a bank is willing to lend you, which is known as your ‘borrowing power’. This amount is worked out based on your current financial position including your salary, savings, expenses, assets and debts (such as credit cards, higher education, personal loans, etc.).

Most banks have an online calculator to give you an estimate on your borrowing power, but it’s wise to speak with either a mortgage broker or a representative at your preferred bank to assess your individual circumstances in depth.



Once you’re aware of your borrowing power, you can research the property market to identify what’s within your budget. The largest sum of money you will need to have saved up is your deposit.

Whilst some lenders will allow you to borrow over 80% of the property’s value, it’s important to keep in mind that in this scenario, you will either need to have a guarantor or pay Lender’s Mortgage Insurance (LMI). LMI is a fee applied directly to your mortgage by the lender for added financial security, as you’d be borrowing a higher amount. This figure is calculated as a percentage of the borrowed amount and applied to your mortgage annually.


Real estate agent opening front door of property to conduct property valuation


Valuation Fees

Property valuation is the process of engaging someone to give a formal opinion on the market value of a property, based on recent sales in the area, size and market rent. This is then used to formulate the property’s worth, and therefore how much you will need to borrow to purchase it.


Grants & Concessions

If you’re a first home buyer in the ACT, you should check your eligibility to receive the First Home Owner Grant (FHOG) by visiting ACT Revenue Office’s page. If you’re a first home buyer in NSW, visit the NSW Government’s Revenue page to check your eligibility.

These grants are aimed at providing financial assistance to eligible people buying their first home, and can save you thousands of dollars on fees such as Stamp Duty.


Mortgage application with red approved stamp, keys to new home beside it


Stamp Duty

Stamp Duty is a compulsory tax imposed on home loans (as well as other acquisitions), and is worked out as a percentage of the value of your property. That means, the more expensive your home is, the more you’ll pay in Stamp Duty.

It’s important to be aware of exactly how much this will be and whether you’re entitled to any grants or concessions as outlined above, as the full amount must be paid within 30 days of settlement if you are required to pay it.


Legal & Conveyancing Fees

Buying property requires a lot of legal paperwork that must be formally acknowledged and signed. Conveyancing is the area of law that handles this part of the process, which involves the official transferral of property from one owner to another, in accordance with Australian legislation.

To ensure you fully understand your contractual obligations, a solicitor specialising in this field or conveyancer should be engaged. They will be able to highlight any conditions that you should be aware of and ensure you understand what your contract outlines. Conveyancing fees can vary so do shop around, but you should be prepared to budget approximately $1000 for this component.


Young family of four unpacking boxes in their new home


Settling In

If you’re purchasing a home you plan to live in, the settling in costs can add up quickly and take you by surprise! Be sure to consider all aspects of moving in, from packing materials such as boxes and packing tape, professional removalists, end of lease clean (if you’re coming from a rental property), new furniture and setting up your utilities at your new home.


Buying property is an exciting decision but one that should be researched thoroughly. Whilst we have aimed to cover some of the main financial components of buying property; every person’s situation is unique, so it’s important to do your own research and speak to a financial expert to assess your situation before making any decisions.

  • Patrick & Sarah / Ginninderra Estate

    We recently caught up with our valued clients, Patrick and Sarah, at their brand new home in Ginninderra Estate. Here's what they had to say...
    Read more
  • Brodi & Catherine / Hackett

    We recently caught up with our valued clients, Brodi and Catherine, at their new home in Hackett. Here's what they had to say of their...
    Read more
  • Chris & Sarah / Holt

    We recently caught up with our valued clients, Chris and Sarah, at their brand new home in Holt. Here's what they had to say of...
    Read more
  • Amy & Lewis / Taylor

    Amy and Lewis have just moved into their new home in Taylor. We popped in to see how they were finding their new home.
    Read more
  • Kanu / Taylor

    We recently completed a home in Taylor for Kanu. Here's what Kanu had to say about her experience!
    Read more
  • Michael & Kayla / Googong Meadows

    We recently caught up with our valued clients, Michael and Kayla, at their brand new home in Googong Meadows. Here's what they had to say...
    Read more


Growing your own fruit and vegetables

Ever heard the phrase “we are only four days from anarchy”? It’s an extreme way to say that most grocery stores would be empty in...

Read More

Tips For Designing Your Own House In Canberra

There’s nothing more satisfying than owning your own home. Even better, if you are involved in the designing phase, you know what joy comes with...

Read More

Should You Build A New House or Buy An Existing Home In Canberra?

We all need a place to call home in Canberra. When the time comes to get a suitable place to live, there is usually a...

Read More

Our Awards







Achieve Homes is a home building company that has become one of the most trusted builders in the industry operating in Canberra, surrounding NSW region and Melbourne. We have been operating since 2008 and understand what our customers want.


15/9 Beaconsfield Street
Fyshwick, ACT 2609

9/20 Graduate Road
Bundoora, VIC 3083

1300 234 432

ABN 31 137 872 014
ACT BL No 2009645
NSW BL No 224797C
VIC ABN 41 608 214 375
VIC BL No DB-L 39743

© 2019 Achieve Homes All Rights Reserved | Site Created By 23 Creative

Translate »