Tips for First Home Buyer Sydney

Tips for a First Home Buyer in Sydney

If you are a first-time homebuyer in Sydney, there are several things you should keep in mind to help make the process smoother and more successful.
  • Start by assessing your finances. Determine your budget, including how much you can afford for a down payment, monthly mortgage payments, and other expenses associated with homeownership.
  • Research the different areas of Sydney to find the location that best suits your needs and budget. Consider factors like proximity to work, schools, and public transportation.
  • Get pre-approved for a mortgage from bank through trusted mortgage brokers. This will give you a better idea of how much you can afford to spend on a home and make you a more attractive buyer to sellers.
  • Work with a reputable real estate agent who can help you navigate the Sydney housing market and find properties that meet your criteria.
  • Don't rush into a purchase. Take the time to view multiple properties and ask questions to ensure that you're making an informed decision.
  • Consider the long-term costs of homeownership, including maintenance, property taxes, and insurance.
The First Home Owners Grant New South Wales is a one-off payment to help first home owners manage the costs of buying a home.

Buying a property for a home is one of the most crucial decisions in one's life. Here are the tips for first home buyer in Sydney. Getting a "dream home" is everybody's desire, but it is not easy to get one. Even if one has identified a dream home, it is significant to check all the aspects before committing one hard-earned money.

Getting help from a professional property dealer goes a long way in deciding upon a property. It is an inexpensive way of determining the correct status of the property.

If you are a first-time home buyer looking for a property in the eastern suburbs of Sydney, there are strategies to overcome the huge demand and high prices in these neighborhoods.

First home buyers typically need to provide a deposit when purchasing a property. The required amount for the deposit can vary depending on a range of factors, such as the purchase price of the property, location, and loan-to-value ratio (LVR). According to the amount a first home buyer needs to save for a deposit could be as low as 3.2% of the purchase price in some cases. For example, if purchasing a property worth $550,000, the deposit required could be around $17,500, which includes a First Home Owner Grant of $10,000. If purchasing a new build property for the same amount in regional Victoria, the deposit required could be even less. However, if a buyer is borrowing more than 80% of the property's value, they may be required to pay Lenders Mortgage Insurance (LMI). According to  a minimum deposit of 20% of the full property value is required to avoid LMI, but a 5% deposit may be possible with LMI. For example, if purchasing a property worth $600,000, a deposit of 20% would be $120,000, while a deposit of 5% with LMI would be $30,000. It's worth noting that the deposit amount required can also depend on the lender's lending criteria. According to a 5% deposit on a $680,000 loan equates to $34,000, which is less than many prospective buyers expect, but this doesn't take into account the hidden costs of buying a home. The article also notes that despite many lenders tightening their lending criteria, there are still lenders who may be willing to offer a loan with a smaller deposit. There are also government schemes available to assist first home buyers with their deposit. For example, the First Home Loan Deposit Scheme (FHLD), which began on January 1st, 2020, allows eligible first home buyers to purchase a property with as little as a 5% deposit without the need for LMI. According to the FHLD allows eligible buyers to purchase a property with a deposit of just 5%. In summary, the deposit amount required for first home buyers can vary depending on several factors, including the purchase price, location, and LVR. Buyers may be able to secure a loan with a smaller deposit if they are willing to pay LMI, and there are government schemes available to assist with the deposit amount. It's essential to research and compare options from different lenders and schemes before making a decision.

First Home Buyer in Sydney

Location is critical 

For First Home Buyers Sydney, affording on suburbs like Parramatta can be a little disheartening. This suburb is the second largest CBD in Sydney, with the biggest shopping centres in Australia and excellent public transport. Detached homes are expensive and out of reach for first-time home buyers. However, one can opt for apartments as they are considered normal in Sydney East. The advantage of buying apartments here is that one can compromise on space, but in return, one can get a good location, views, lifestyle, and added security.

  • Auctions for bargain deals

It is better to do prior research of the location where one intends to buy a property. Talking to mortgage brokers, real estate agents, and savvy investors proves to be helpful. Consulting even friends and relatives help the first-time homebuyer to gain valuable insights. Research on the real estate online portal to gather the price trend in the targeted location. This preparation will help one to be ready with the information necessary to bid for the best deal during auctions. Bidders armed with all the information and prepared with a budget and even a pre-approved home loan in place stand a better chance than the competition.

  • Mortgage brokers for financial assistance

Mortgage brokers provide financial advice and assistance to first-time homebuyers for getting a home loan without any hassle. Some of the Best Mortgage Brokers in Parramatta have a great relationship with lenders because of the large number of loans they process every month. It also gives them the leverage to negotiate lower than the advertised interest rates with the lenders and provide the best deals to first-time home buyers.


Get expert advice and tips for first home buyer in Sydney, should decide on their list of targets when shopping for a property in any affordable suburb of Sydney. The decision to invest in such property is not short-term, and reselling is one's plan to keep in mind when one wants to move up the property ladder.

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