Handy hints and tips

Things to think about

Buying a home is probably the biggest financial purchase you will ever make, so you should have all the facts about obtaining housing finance before you decide.

We recommend you:

1. Shop around

   Home lending in Australia has changed a lot in recent years. Interest rates and the types of loans available can change rapidly. It is important to know what products are available when you think about buying a home.

   There are many options. The department's home loan products may not provide the best assistance for everyone.

2. Seek advice

   It is important to be well informed when deciding whether a department loan is right for you. The department requires that you seek independent financial advice, and strongly recommends that you seek independent legal advice.

3. Budget

   Start planning your future budget now.

   When you own a home, there are many extra costs that you would not have to pay as a renter. Work out your budget for:

   • home maintenance and repairs
   • council rates
   • insurance.

   While some of these expenses occur regularly, others such as unexpected repairs, will arise without notice.

   You should also consider whether your normal living costs and income would change. For example, if you are currently receiving Rental Assistance from Centrelink, this assistance will cease when you buy a home.

   The budget planner will assist you to compare your income with your regular commitments and unexpected expenses to see if you can afford to buy a home. To keep up-to-date with changing costs, you should update the planner at least every six months.

What are the costs of home ownership?

There are many costs associated with buying and moving into a home. These may include:

• conveyancing (legal fees)
• loan application fees
• government stamp duty
• council rates and transfer fees
• building inspection costs
• removalist charges
• connecting electricity, gas and telephone
• insurance on the home
• adjustments to be paid on completion of the contract.

Make a list so you know what is involved and how much money you will need. Ask your solicitor for an estimate of these costs based upon your particular circumstances, as they do vary depending on the purchase price, hours involved and other factors.

For more information about the home ownership assistance, view the home loans from the department section.