Top 4 home loan tools for first home buyers

So, you're about to buy your first home and currently feel like a new parent that's in way over their head? Firstly, congratulations! Buying your first property is an incredible achievement and massive milestone in your life, which you should be super excited about.

Secondly, if you're on the brink of becoming a first-home buyer, then it's only natural you'd be feeling a little confused about the whole thing. So, to help make buying your first home a total breeze, here are the top 4 home loan tools for first home buyer's. With the help of these top tools, the only thing you'll need to worry about is picking carpet or floorboards.

Got questions about the home loan process? The rise of AI and new technology in finance means you might not even have to pick up the phone to get the answers you need.

For example, UBank’s Mia (A.K.A. 'My Interactive Agent') is the world's first "digital human" home loan application assistant, powered by artificial intelligence. Mia will guide you through the online home loan application process, answering any questions you verbally ask her via your computer or smartphone. Think of her as the Siri for home loans!

“Our research showed us that the majority of home buyers, particularly first time buyers, are asking the same questions. They want practical, accessible and relatable tools to help them on the journey,” said UBank CEO, Lee Hatton. 

“They often want to ask questions they might see as “silly” or embarrassing in a safe environment.”

Before you even get to the stage of buying a property, you’ve got to find the right one. There are plenty of services to find houses, apartments and other properties for sale, but if you’re looking to buy a property straight off the plan for your first home, a service specialising in new builds could be useful.

Urban.com.au is an online property match tool designed to help you find the right property to purchase off the plan suited to your specific individual needs. With over 5000 projects in its’ digital marketplace, if it’s a brand new off the plan home that you’re after, Urban.com.au can help you find just that.

“Compared to [2018, in 2019] the mix of first home buyers enquiring on new developments on Urban.com.au has increased by almost 40%. Even though property price growth has softened recently it has still been challenging for some buyers to purchase their first home,” said Craig Holmes, Executive General Manager at Urban.com.au.

“New apartments and townhouses can be a great option for first home buyers with potential savings in stamp duty, often lower outgoings with greater energy efficiency standards, and some developers offering special incentives to help reduce the overall cost of purchase."

As a first time home buyer you may qualify for the government’s First Home Loan Deposit Scheme (FHLDS). If you have less than 20% of a deposit saved up got your future home purchase, chances are you will be required to purchase Lenders Mortgage Insurance. This insurance protects the lender, not you, incase you default on the loan. However with FHLDS, if you are a first time home buyer with at least a 5% deposit you can avoid paying this insurance.

There are several requirements you need to meet before qualifying for FHLDS, but if you this scheme will help you save several thousands of dollars.

If you’re buying for the first time, one thing you might not have thought of is the extra costs that go into buying a home, like transfer duty (previously known as ‘stamp duty’). But did you know that if you’re a first home buyer, you might qualify for an exemption, concession and/or grant on transfer duty under the First Home Buyers Assistance Scheme?

To be eligible in NSW, you must be an over 18-year-old Australian citizen or permanent resident of Australia buying the first home that you or your spouse have owned/co-owned in Australia. You’ll need to move into the property within 1 year of purchase and live there for at least 6 continuous months. Just make sure to check the eligibility requirements as they can vary from state to state.

Make sure you check out our first-time buyer guides or hit up our first home loans comparison table to find a hot home loan to help seal the deal.