• know your spending habits
• set a budget
• pay yourself first, aiming for 10% of your after tax income each pay day.
• your contribution, generally between 5% and 20%, towards the property you wish to purchase.
• for deposits under 20% Lenders Mortgage Insurance is required, which protects the lender, not the borrower
• lenders will want to see a history of regular deposits into a savings account for a minimum of 3 months. Try out our savings calculator here.

Family guarantee allows you to buy a home sooner by using the equity in a family member’s home as additional security on your home loan. There is a risk for the guarantor and lenders will require guarantors seek independent financial and legal advice. If you are unable to pay your loan your guarantor will become liable. Another option is a non-repayable financial gift.

The benefits of both these options are that if the loan to value ratio 80% or less, Lenders Mortgage Insurance is not required.

In addition to the deposit, you will need to cover other costs associated with buying a property and obtaining a home loan:

• home loan establishment fee
• ongoing monthly fee or annual home loan package fee
• property valuation, building and pest inspections
• government fees such as stamp duty and registration fees
• conveyancing fees, including rate adjustments
• building and contents insurance
• moving costs
• owners corporation fees

• be realistic about how much you plan to spend on your first home.
• use our loan calculators to gain an idea of your loan affordability and likely monthly repayments.
• once you feel comfortable with a particular loan amount, adjust the interest rate up by 2% to make sure you would still be able to repay the loan if interest rates increase.
• review your budget and take into account future plans such as having children.

• pre-approval is when your lender approves a loan limit, based on your current situation, before you purchase a home.
• pre-approval is looked upon favourably by vendors and is vital if you intend purchasing at auction.
• to determine pre-approval, lenders look at your financial position, income, expenditure, savings, employment and credit history.
• conditional pre-approval generally lasts for 3 months and it is up to you to let the lender know if your circumstances change, such as starting a new job.