Homeownership is a dream for many adults. But more than this, it’s a need. A roof over one’s head means security. As exciting and reassuring as that idea may be, owning a house is not easy. If you have a plan to purchase any time soon, here are the things that you should consider as first homebuyers.

Upfront costs

You will typically need to have saved up 20% deposit when you want to purchase a house. The bigger the purchase price, the bigger the deposit you will need. If this is your first time buying a house, then you are lucky. The government has put in place schemes to help first-time homebuyers. 

There is always the option to pay the lender’s mortgage insurance (LMI) when you can’t pay 20% in deposit. However, this is more expensive in the long run.

Other than the down payment, there are other costs you should be aware of. 

There is the closing cost which amounts to around 2% to 5% of the purchase price. You will also be paying for the appraisal fees. The cost for that will be around $300 and up. 

You will also need to pay for real estate taxes and homeowners insurance. When you apply for a mortgage, there is a fee. And then of course, when you finally move, you will have to pay the movers. That usually ranges from $500 to $2,000. 

Government grants

With the New Home Guarantee Scheme of the government, you can buy a house with as little as a 5% deposit, the remaining costs will be guaranteed by the government. Take note that this is only available through participating lenders in partnership with the government.

If you do not qualify for the New Home Guarantee Scheme, you can also apply for the First Home Loan Deposit Scheme. Other government supports such as the  First Home Super Saver Scheme, Home Builder Grant, or First Home Owner Grant.  Check out the detail on the National Housing Finance and Investment Corporation. 

Or check out our detailed guide on the government guarantees and concessions you can enjoy. 

Ongoing costs

When you have finally moved into your new home, it’s time to celebrate. A bit. Yes, because you have to think about all the maintenance and ongoing costs to cover starting now. 

For a newly built property, it would take a few good years before you have to face repairs and renovations. However, this is not an excuse to not prepare for the rainy days. The sooner you can, the better. 

You don’t have to stress out about computing the amount you need to save from your monthly income for the maintenance. You can simply set aside 1% of the total purchase price of the house. For a $400,000 property, that is $400 monthly. 

Before you decide on which house to buy and plan the rest of your life, talk to a broker. A professional broker can guide you through all the things you need to do and prepare before and after you lodge your mortgage application as first home buyers.