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

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 22 June 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

    • Owner Occupier
    • LVR 90-95%
    • Principal & Interest
    Interest rate
    7.19 % p.a.
    Variable
    Comparison rate
    7.22 % p.a.
    Initial monthly repayment
    $4,747
    Go to site

  • Offset Home Loan

    • Owner Occupier
    • LVR 90-95%
    • Principal & Interest
    Interest rate
    7.19 % p.a.
    Variable
    Comparison rate
    7.43 % p.a.
    Initial monthly repayment
    $4,747
    Go to site

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR 80-95%
    Interest rate
    6.75 % p.a.
    Fixed 3 years
    Comparison rate
    7.09 % p.a.
    Initial monthly repayment
    $4,540
    Go to site

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR 80-95%
    Interest rate
    6.75 % p.a.
    Fixed 3 years
    Comparison rate
    7.30 % p.a.
    Initial monthly repayment
    $4,540
    Go to site

  • Basic Home Loan

    • Owner Occupier
    • LVR 90-95%
    • Principal & Interest
    Interest rate
    7.19 % p.a.
    Variable
    Comparison rate
    7.22 % p.a.
    Initial monthly repayment
    $4,747
    Go to site

  • Offset Home Loan

    • Owner Occupier
    • LVR 90-95%
    • Principal & Interest
    Interest rate
    7.19 % p.a.
    Variable
    Comparison rate
    7.43 % p.a.
    Initial monthly repayment
    $4,747
    Go to site

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.