With interest rates stabilising and signs that inflation may have peaked, we may be at or near the bottom of the housing cycle. For first home buyers and builders in the Geelong region, this presents an ideal opportunity. While the cost of living remains high, it’s looking likely that interest rates will start to decrease in 2025.
Now is the perfect time to dive into research, explore available government incentives and grants, and understand your financing options.
Starting your journey toward owning a home in Geelong can feel daunting, especially when it comes to financing a home, but we’ve put together our top tips to get you on your way.
1. Start with a Plan
Begin by assessing your financial readiness. It’s essential to review your income, expenses, and any debts to understand your borrowing capacity.
Meeting with a mortgage broker can help clarify how much you can borrow based on your financial profile, whilst also being able to assist you with the many questions you may have about the process.
Damien Pearson from GSC Finance Solutions says “Buying / Building a home can be really overwhelming for the first time. The best advice I can offer is to engage a specialist early so you know what you can spend and how much your repayments will be – then start your search based on this.”
2. Take Advantage of First Home Buyer Grants and Schemes
There are several grants available to help first home buyers reduce their upfront costs:
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- First Home Buyer Stamp Duty Concessions: This concession is available to all First Home Buyers, and means that Stamp Duty is abolished where they purchase an established home or a block of land on which they intend to build on up to $600,000. If you spend more than $600,000 then the stamp duty is concessionally calculated up to the rate of $750,000.
- First Home Owner Grant (FHOG): As of now, eligible first home builders in Victoria can receive a $10,000 grant when they build a new home, offering a substantial boost to your budget. Currently, the cost of the build can be up to $750,000.This can also apply if you are buying a brand-new home that is being lived in for the first time.
- First Home Guarantee: This federal scheme allows eligible buyers to secure a home with as little as a 5% deposit. Under this scheme the government will guarantee home loans (they will not be owners of the property) which can allow you to own a property sooner. This scheme is available to both home buyers and builders. Be sure to speak with a broker to confirm eligibility and also not all banks/lenders have access to this scheme.
- First Home Super Saver Scheme (FHSS): If you’re wanting to get into the property market in the future, this scheme gives you the chance to make voluntary contributions into your super fund that you can use for your first home loan deposit.
- Bank of Mum and Dad: There can be ways that parents can help responsibly via gifts or a family guarantee.
This can be really beneficial financially, so it is always worth speaking to a banker / broker to understand if this suits your personal situation.
3. What size deposit do you need?
The above options will help you with your deposit however, if you do not qualify for any of these there is the option to take on Lenders Mortgage Insurance.
This can be a slightly more costly exercise, but if you weigh it up in comparison to the amount of rent you will pay while you continue saving, it can be a worthwhile decision.
We recommend you discuss the pros and cons of this option with your broker, based on your unique situation. -
4. Keep Your Budget Future-Proofed
When planning your budget, consider future financial needs and lifestyle changes. Opting for a new build with Geelong Homes can be a smart move—our homes offer quality inclusions designed for lasting value and minimal upkeep, helping you avoid major expenses in the early years of homeownership.
Owning your first home in Geelong is achievable with the right preparation and knowledge of available grants and financial options. To get started, reach out to our team for guidance on building the perfect home for your budget. Our knowledgeable team can also provide advice on the different estates in Geelong and assist you with choosing the right block to suit your favourite floorplan.
For more detailed financial guidance, you may want to visit a mortgage broker.
^ While we’ve tried to be as helpful as possible, this blog should not be taken as professional financial advice. It contains general information only, and you should seek out independent, professional advice before making any financial decisions.