4 tactics for the first-time homebuyer in this high priced market

How do you feel about your prospects of getting a new home? Well, according to a survey released by Per Capita’s Centre for Equitable Housing (CEH), 24% of people feel they’ll never be an owner. 

It’s not hard to see why. Per Capita’s survey estimates that housing stress—where a household has to commit an oversized portion of their income to housing expenses—may be affecting as many as 1 in 4 Australian households. 

So, with more Aussies feeling the Australian dream slipping out of their hands, it's no wonder that more are expecting the government to step in with almost three-quarters (72%) of Per Capita’s survey respondents supporting the construction of social housing.

However, with delays of the government's Housing Affordability Future Fund in the Senate causing a deadlock in the system, and affordable housing feeling more out of reach than ever, people are also feeling pessimistic about government support. 

But don’t despair just yet! At Mozo, we believe everyone has the power to improve their financial position. So, what can everyday people do to actually build toward that first home?

Let’s consider 4 simple tactics:

1. Budget for your deposit

You’d be surprised how much we waste when we don’t structure our spending. Too many times when shopping you can think “why not?” or buy things on a whim. You won’t be perfect with it, nobody is, but it’ll plug most of the holes in the proverbial ship of regular spending. 

Check out Mozo’s budget spreadsheet for a free and easy tool to make your new budget. 

2. Sort out debt

Still paying off that car? Loads of credit card repayments? Sorting out your debt as fast as possible can not only increase the savings for your deposit, but can also take off the pressure while repaying your loan and help you avoid becoming a home loan hostage

3. Check out government first home owner schemes

There are several government schemes, both state and federal, that you can take advantage of if you need the support. One of these schemes, the First Home Guarantee (FHBG), has the government act as a guarantor for your first home. What this means is that while your initial deposit (loan-to-value ratio or LVR) usually needs to be 20%, the FHBG allows you to purchase a property with a LVR of 5% or more without paying lenders mortgage insurance (LMI).  

4. Compare home loan providers

When you’re ready to purchase your new home, you’ll need to make sure that you’re getting the loan that works for you. Instead of individually clicking on every site you can imagine, you can use Mozo’s handy comparison tools to find the home loan that works best for you. 

In the end it helps to have a plan! There are more affordable home loans out there and our experts handpick the best ones on the market. Be sure to check out our home loans hub to start comparing.

Home loan comparisons on Mozo - last updated 28 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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  • First Home Buyer Loan Special

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.90% p.a. variable
    5.93% p.a.

    A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.

    Compare
    Details
  • Basic Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR 80-95%

    interest rate
    comparison rate
    Initial monthly repayment
    6.69% p.a. variable
    6.70% p.a.

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    Details
  • FHBG Special Offer Classic Home Loan

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.26% p.a.

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    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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