Your First Home Buyer Checklist for Cannon Hill
Buying your first home in Cannon Hill is an exciting milestone, but it can also feel overwhelming when you're not sure where to start. Whether you're looking at properties near the Cannon Hill train station or closer to the leafy streets around Minnippi Parklands, having a clear checklist will help you stay organised and confident throughout the process.
At LBK Lending, we work with first home buyers across Brisbane every day, and we've put together this practical guide to help you understand what's involved in buying your first home.
Understanding Your First Home Buyer Budget
Before you start attending open homes, you'll need to work out what you can actually afford. Your first home buyer budget isn't just about the purchase price - it includes several other costs:
- Deposit (typically between 5% to 20% of the property price)
- Stamp duty (though you may qualify for concessions)
- Building and pest inspections
- Conveyancing or solicitor fees
- Moving costs
- Lenders Mortgage Insurance (LMI) if you're borrowing more than 80% of the property value
Many Cannon Hill first home buyers are surprised to learn that you don't always need a 20% deposit. With programs like the First Home Loan Deposit Scheme and low deposit options, you might be able to purchase with just a 5% deposit or 10% deposit.
Checking Your First Home Buyer Eligibility
First home buyer eligibility depends on several factors. Generally, you'll need to:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Not have previously owned property in Australia
- Live in the property as your primary residence
- Meet income and property price caps for government schemes
It's worth checking your eligibility for programs like the Regional First Home Buyer Guarantee and first home owner grants (FHOG), as these can significantly reduce the amount you need to save.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at LBK Lending today.
Exploring First Home Buyer Grants and Concessions
Queensland offers various incentives for first home buyers. The first home buyer stamp duty concessions can save you thousands of dollars on your purchase. Depending on the property price, you may be eligible for a full or partial exemption on transfer duty.
First home buyer grants are also available for new builds or substantially renovated properties that meet specific criteria. These grants can provide a welcome boost to your deposit or help cover other upfront costs.
The First Home Super Saver Scheme is another option worth considering. This allows you to save for your deposit inside your superannuation fund, potentially taking advantage of tax benefits.
Understanding Home Loan Options
When you apply for a home loan, you'll encounter several choices that will affect your repayments and how your loan works:
Interest Rate Types:
- Variable interest rate: Moves up or down with the market, offering flexibility
- Fixed interest rate: Locked in for a set period, providing payment certainty
- Split loans: A combination of both fixed and variable portions
Loan Features:
- Offset account: A transaction account linked to your loan that reduces interest charges
- Redraw facility: Allows you to access extra repayments you've made
- Interest rate discounts: Often available through mortgage brokers who can negotiate on your behalf
Different home loans suit different situations, and what works for your colleague might not be right for you.
Getting Pre-Approval Before House Hunting
One of the most valuable steps in your first home buyer checklist is obtaining pre-approval. This tells you exactly how much you can borrow before you start looking at properties.
Pre-approval gives you:
- A clear budget for your property search
- Confidence when making offers
- An advantage in competitive situations where sellers prefer buyers with finance arranged
- Time to sort out any issues with your application before finding the perfect property
When you're ready to apply for a home loan, you'll need to gather documentation including payslips, bank statements, identification, and details of your savings and expenses. Having these ready will speed up your first home loan application process.
Understanding Lenders Mortgage Insurance (LMI)
If you're borrowing more than 80% of your property value, you'll typically need to pay Lenders Mortgage Insurance (LMI). This protects the lender if you can't make your repayments.
While LMI adds to your upfront costs, it allows you to buy sooner with a smaller deposit. For some Cannon Hill first home buyers, this means entering the market years earlier than if they waited to save a full 20% deposit.
Some alternatives to paying LMI include guarantor loans, where a family member uses their property as additional security, or certain no LMI loans available through specific lenders and professions.
Gift Deposits and Family Support
If your family is helping you with your deposit, this is called a gift deposit. Lenders will typically accept gift deposits from immediate family members, though they'll need a signed declaration confirming the money is a genuine gift and not a loan that needs to be repaid.
Gift deposits can be combined with your own savings to reach the required deposit amount, making homeownership more achievable.
Your First Home Loan Application Checklist
When you're ready for your first home loan application, make sure you have:
- At least three months of payslips (or tax returns if self-employed)
- Six months of bank statements for all accounts
- Details of any other assets or debts
- Identification documents (driver's licence and passport or birth certificate)
- Evidence of your savings history
- A copy of the contract of sale once you've found a property
Working with a mortgage broker can make this process more straightforward, as we help you understand what's required and liaise with lenders on your behalf.
Understanding Your Borrowing Capacity
Your borrowing capacity determines how much a lender will let you borrow. This depends on:
- Your income and employment stability
- Your existing debts and financial commitments
- Your living expenses
- The number of dependents you have
- Your credit history
Lenders assess these factors to ensure you can comfortably manage your repayments, even if interest rates increase.
Making Your Move to Cannon Hill
Cannon Hill offers first home buyers a wonderful lifestyle with its proximity to public transport, shopping precincts, schools, and parklands. The suburb's established feel combined with its accessibility to Brisbane CBD makes it popular with young professionals and families.
As you work through your first home buyer checklist, remember that you don't have to figure everything out alone. Professional guidance can help you understand your home loan options, identify programs you're eligible for, and structure your loan to suit your circumstances.
At LBK Lending, we specialise in working with first home buyers throughout Brisbane, including right here in Cannon Hill. We take the time to explain your options, help you understand the paperwork, and find suitable home loan options for your situation.
Call one of our team or book an appointment at a time that works for you. Let's work together to turn your first home dreams into reality.
