Buying Your First Home With A Financial Planner

Smart Saving to Buy Your First Home

It is the Great Australian Dream to purchase property and be able to live in your own home. However, as reports are showing, buying your first home is further away than ever before. Why? Because the price of property has increased across the board and income has only increased incrementally in comparison.

An archaic way of thinking is that we should live like hermits and forego avocado on toast until we can afford the deposit. This way of thinking simply just isn’t true anymore, and we deserve our smashed avo on toast. Our aim is to help all of our millennial clients buy their first home in the next 12 months.

Why do you need a financial planner to save for your first home?

A financial planner will get to know you, understand your lifestyle and create a financial plan that is accommodating. We are unlike standard mortgage brokers because we don’t just review and assess your financials, we help you save money for your first home. There are 3 reasons why you should hire a financial planner who is also a broker:

• Help you save for a deposit
• Help you get your first mortgage
• Continue looking after you so can purchase your next home

At Master Your Money Now, we pride ourselves in holding qualifications in both mortgage broking and financial planning as this assists us in offering complete solutions to our clients when buying their first home.

How can financial planners help you buy your first home?

There are many ways a financial planner can help you buy your first home. We can work with you to create budgets, financial strategies, investment strategies and teach you how to leverage government grants.

Did you know you can use your super to save for your first home? Most people are still using their bank account to save for their first home which is not a smart way to do it. You can utilise a little known strategy such as the First Home Super Saver Scheme where if you put in an extra $30,000 into your super account, you can withdraw this money again in the future and save up to $4,500 in tax. An extra $4,500 in savings, not working harder, just working smarter!

However, there are a lot of tricks and traps with this strategy which can result in penalty tax of up to $12,000. Our financial planners have extensive experience in helping individuals use their super to purchase their first home.

“The Biggest Mistake Most People Make Is Not Hiring A Financial Planner!

First Home Loan Deposit Scheme

Most people think you need a 20% deposit to finance your first home as this can potentially avoid Lenders Mortgage Insurance (LMI). Lenders Mortgage Insurance is an additional charge added to your mortgage, payable to lenders if you are borrowing more than 80% of the property purchase price. You can pay it upfront or add it your mortgage amount.

The lender considers it a protection of their interests in case you default on the loan. However, there is a government initiative called the First Home Loan Deposit Scheme (FHLDS) where each year 10,000 eligible first home buyers can apply for a home loan with a 5% deposit and the government will cover your LMI.

A good financial plan is the key to being successful when applying for this scheme as positions are usually hard to acquire. For example, in 2018 the 10,000 spots were filled within 6 weeks and there were 106,000 applicants.

At Master Your Money Now, our financial planners have helped plenty of first home buyers acquire this initiative and we are confident we can do the same for you!

Your next step: Get In Touch With Our Financial Planners

If you are thinking about purchasing your first home, don’t make the biggest mistake and hire a financial planner.

At Master Your Money Now, we are a team of expert financial planners and step one of getting to know you are a 30-minute complimentary strategy session.

So book in today to set yourself up for the right start.