First Home Buyers

Home Loan Product Information

We understand buying your first home can be a daunting and stressful task. Many may struggle to understand the unique and complicated home buying process. NEXT can assist you to prepare for your biggest financial decision and make the process EASY.


Congratulations on purchasing your first property and entering the exciting world of home ownership! Whether you made a direct offer to the owner’s agent, or bravely bought the property at auction there are many more steps to take. With everything from the settlement statement to council and water rates to take into consideration, there are a number of things to tick off your to-do list before the property is all yours.

First Home Buyers Checklist

  • 1. See if you’re eligible for the First Home Owners Grant in your state or territory.One of the perks of being a first-time buyer is that you may be eligible for some extra help from the Government, your eligibility and the amount of assistance you qualify for depends upon the property you’re buying and the state or territory where your new home is located. If you’re eligible, ask your home loan provider to organise the First Home Owners Grant paperwork for you whilst they are organising your home loan.

  • 2. Exchange contracts.After your solicitor or conveyancer has reviewed the contract with you, made any amendments agreed with the vendor, and you’re happy with going ahead, all that is left to do is for you to sign the contract and generally pay a deposit. It is important to note that there is a cooling off period once the contracts have been exchanged.

    If you purchased the property at auction, generally you pay a 10% deposit on the day of the auction unless you negotiated a different arrangement prior to the auction.

  • 3. Inspection prior to settlement.Once you have exchanged contracts and the cooling off period (if applicable) comes to an end it is wise to inspect the property again on the morning of settlement to ensure there are no issues and nothing has changed since your offer to purchase. Before settlement takes place, your solicitor should provide you with a settlement statement noting the date of settlement and funds required to settle.

  • 4. Set up your utilities.Home ownership brings with it responsibility for costs such council rates, water rates and utilities which begin at settlement. So, before you move into your dream home, make sure you contact your utility providers and advise them that you’re the new owner of the property.

  • 5. Ask for a certified copy of owners’ corporation insurance.If you’re purchasing an apartment or townhouse, there will be strata levies payable quarterly and your home loan provider may require proof that the building is insured, ask the Owners’ Corporation for a certified copy of their insurance policy prior to settlement.

  • 6. Pay your conveyancer or solicitor.Make sure you budget for the conveyancing and legal fees. Typical costs are approximately $2000.00 depending upon the property you’re purchasing and the fee schedule of your settlement provider.

  • 7. Collect the keys to your first home.Once settlement has taken place, your home loan provider will register your deeds with the Land Titles Office. You will then be able to pick up the keys to your first home from the real estate agent and the journey of home ownership truly begins!

What to expect?

Next Asset Finance will ensure you are on the right track to achieve your financial goals. You may be buying a car, a property or would simply like to be sure you have the best deal on your current loans; we help you explore better ways to achieve your financial goals.

Our team at NEXT will work with you to simplify your financial roadmap and provide a clear picture of what you is required for you to achieve your goals.



If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000.

Your first home can be a house, townhouse, apartment, unit or similar but it must be valued at $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old.

It cannot be an investment property or a holiday house.

The FHOG may be paid in addition to other exemptions or concessions for eligible homebuyers, including pensioners.

Source of information from State Revenue Office, Victoria.


When you buy your first home on or after 1 July 2017, you may be eligible for an exemption or concession from duty.

If you entered into a contract to buy your first home before 1 July 2017, you may be eligible for the first home buyer duty reduction. This duty assistance is available to eligible first home buyers, in addition to the First Home Owner Grant.

Once you have read the information below, you can find out more about applying for the exemption or concession.

More information about Exemption or concession please read more here.


Unsurprisingly, the most common question that first home buyers ask is how much they can borrow.

There is no one size fits all when it comes to how much you can borrow, when you partner with NEXT we can complete an accurate analysis of your borrowing capacity and take the uncertainty away. Lenders will assess your income and expenses and you’ll need to provide evidence of your repayment capacity, generally, lenders will require you to allow for future rate increases by lending you slightly less than your full repayment capacity.

There are ways you can increase your borrowing capacity, so plan well in advance to reduce your living and financial expenses. Some examples of how this can be done include creating and sticking to a budget, and seeking ways to save by shopping around for cheaper insurances, reduce your credit limits on credit card and paying off personal loans or other debts.


Just like borrowing capacity, the required deposit will vary depending on a number of factors such as the purchase price and the borrowers’ circumstances. Usually, a 20% deposit plus the costs of purchasing a property such as Stamp Duty may be enough to avoid Lender’s Mortgage Insurance (LMI).

However, if you don’t mind paying LMI, 5-10 per cent of the purchase price may be acceptable as a deposit to some lenders dependant upon the type of home being purchased. Having a guarantor may also help you avoid needing to have a 20% deposit.


Understanding the terminology used when buying and financing a property can help make the process less stressful, and LMI is just one of the many acronyms that you’ll become familiar with during the course of buying your first home. LMI is an insurance that protects the lender if you can’t keep up with your payments and typically applies if you buy a home with less than a 20% deposit.


Understanding all the costs involved in buying a property upfront is important, many first home buyers ask this question when meeting with a broker, costs of buying a property may include:

  • Stamp duty
  • LMI (Lenders Mortgage Insurance)
  • Legal / conveyancing fees
  • Mortgage or loan application fees
  • Pest and building inspection reports or a Strata search (for apartments)
  • Utility connections
  • Insurance

The costs of purchasing a property vary by state/territory and also by service provider, so it’s good to seek alternative quotes before agreeing to go with the first conveyancer or insurance provider you find. Your broker can help you asses the costs that apply to you based on where you live, the type of property you’re buying and other factors such as the type of home loan you want and the amount of your deposit.

Ready for your NEXT home?

Need more information?

Free financial health check!

Everyone needs a health check from time to time and with an ever-changing landscape so does your financial health. Our team at NEXT make this an easy process. We can evaluate your current situation and assess how your financial situation is positioned against up to the minute offerings and rates on an obligation-free basis.