Buy your first home in Adelaide!

A lender is a bank, credit union or other financial institution that provides the money you borrow to buy a home. Different lenders have different interest rates, fees, lending criteria and loan features. The right lender will depend on your financial position, deposit, property and the type of loan you need. 

An interest rate is the percentage a lender charges you for borrowing money. It affects how much interest you pay on your home loan and the size of your repayments. Interest rates can be fixed for a set period or variable, meaning they can change over time. Even a small difference in rate can make a noticeable difference to the total cost of a home loan.

Your borrowing capacity depends on your income, expenses, existing debts, deposit, credit history and the lender’s assessment criteria. Lenders also test whether you could afford repayments if interest rates were higher. The maximum a lender will offer is not necessarily the amount you should borrow. A mortgage broker can help you understand your borrowing capacity and work out a price range that feels manageable for you.

Usually, you will need some form of deposit or financial support to buy a home. However, options such as a family guarantor may reduce how much you need to contribute yourself. Government programs can also reduce the deposit required for eligible buyers. A genuine no-deposit loan is uncommon and will depend on the lender, your circumstances and the support available to you. 

A 20% deposit can help you avoid Lenders Mortgage Insurance (LMI), but you may not need to save that much. Some lenders accept smaller deposits, and eligible buyers may be able to purchase with as little as 5% through the Australian Government 5% Deposit Scheme. Remember to budget for buying costs as well as your deposit.

Pre-approval is an indication from a lender of how much you may be able to borrow, based on their first assessment of your finances. It is not a guarantee of final approval, but we strongly recommend it because it can help you set a realistic property budget and buy with more confidence. Pre-approval generally lasts for a limited period and is particularly useful before making offers or bidding at auction. 

There is no single right answer. 

A larger deposit can reduce how much you borrow and may help you avoid LMI, but waiting also means continuing to rent and potentially facing changing property prices. 

Consider your savings, borrowing capacity, repayment comfort, buying costs and the homes available in your budget. The right timing is when the numbers make sense for you, not simply when you reach a particular deposit size. 

Reducing credit cards, personal loans, car loans and other debts can improve your financial position and may increase your borrowing capacity. Lenders consider both your outstanding balances and your ongoing repayment commitments. 

However, using all your savings to clear debt may leave you short of a deposit or emergency buffer. It can help to review your debts and borrowing position together before deciding what to repay first. 

Debt consolidation combines several debts into one loan. It can make repayments easier to manage and may reduce interest or fees in some circumstances.

However, a lower repayment does not always mean a lower overall cost, particularly if the new loan runs for longer. Turning unsecured debt into debt secured against a home can also increase your risk, so the full costs and structure should be carefully compared.

It can. Lenders review your credit history alongside your income, expenses, debts and overall financial position. Missed repayments, defaults and frequent credit applications may affect how a lender assesses your application. Before applying, you can check your credit report for errors and make sure your existing repayments are up to date.

Start by working out what you can comfortably afford, then identify the features that matter most to you, such as location, space, schools or future flexibility. Research recent comparable sales rather than relying only on advertised prices.

Once you find a property you like, consider the contract, building condition, extra charges and any other checks relevant to the property before committing.

Know your budget before you start negotiating and allow room for costs beyond the purchase price such as stamp duty. Arrange appropriate property inspections, have the contract reviewed by a conveyancer or solicitor and understand your finance conditions. It is also worth keeping an emergency buffer rather than putting every available dollar into the purchase. The goal is to buy a home you can comfortably manage, not one worth the maximum you can borrow.

Family support can take several forms, including a cash gift, a loan between family members or a family guarantee using equity in another property. Each option affects your loan application differently and can carry financial or legal consequences for everyone involved.

If a family member is considering acting as guarantor, they should understand exactly what they are agreeing to and consider independent legal advice.

There is no ideal age to buy your first home.

What matters more is whether you have a suitable deposit, stable enough income, manageable debts and the capacity to meet repayments and other ownership costs. Your plans also matter. Buying may make more sense when you expect to stay in a location for some time and the commitment fits comfortably with the rest of your finances.

Yes, you can choose to make your first property an investment. However, doing so can affect your eligibility for first home buyer grants and schemes, many of which require you to live in the property. It can also affect future eligibility. For example, the First Home Super Saver Scheme generally requires that you have never previously owned property in Australia, including an investment property.

A guarantor home loan involves another person, commonly a parent or close family member, providing a guarantee to support your loan. This may help reduce the deposit you need or avoid LMI in some circumstances.

The guarantor takes on a serious financial obligation and may be responsible for the guaranteed amount if you cannot repay the loan. Both borrower and guarantor should understand the arrangement before proceeding.

Your team may include a mortgage broker, lender, conveyancer or solicitor, and building and pest inspector. Depending on the property and your circumstances, you may also use a buyer’s agent, accountant, financial adviser, quantity surveyor or other specialist. Rise High can help you get the right people involved early so you will understand the finance, contract and property before you make a binding commitment.

Conditional approval means a lender is prepared to consider lending you a certain amount provided specific conditions are met. Final or unconditional approval comes later, once the lender has assessed the property and any outstanding requirements.

Even pre-approved buyers should avoid assuming finance is guaranteed until their lender confirms final approval for the particular purchase.