First home buyers

The situation

Tom, 29 and Mel, 27 had recently married and were looking to buy their first home together. After years of renting, they wanted to finally have their own space (and buy a puppy). The first problem was working out how much they could afford?

How we helped

• We conducted a cashflow/budgeting analysis to determine their monthly surplus.

• We assessed their borrowing capacity to find out how much they could afford to pay for their first home. Both clients had a list of suburbs they wanted to live in and were able to narrow their search down to two suburbs (within their budget).

• We assessed their eligibility for the First Home Owners Grant (FHOG).

• Mel had a few low-balance credit cards which we recommended she cancel in order to free up an extra $121,000 in borrowing capacity.

• Mel asked about the First Home Super Saver Scheme (FHSS scheme), however due to their timeframe, this option was ultimately ruled out.

• We were able to get pre-approval for $655,000 with an extra credit facility for some minor refurbishments to their new home.

The results

Tom and Mel were able to get onto the property ladder. As their home appreciates in value, they hope to use the equity to obtain an additional line of credit to make further upgrades.