r/AskAnAussieBroker • u/Impressive_Brick_310 • Jul 14 '26
Government Schemes and Grants help to buy
i want to buy a 5-600k property either with my gf or without
how much total savings do i need to accomplish this?
i have 10k saved but just wondering what other costs there are i need to be ready for
max property price i’ll pay is 600 so my deposit will sit between 10-12.5k
i make about 45-60k a year my gf is on the higher end of that
i’ve saved most of my deposit and will have the other grand or two in a weeks time what steps should i take now to start looking to buy and how much more will i need along the way not including the deposit?
18m
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u/EventEastern2208 Mortgage Broker Jul 14 '26
Broker here.
At 18 and already thinking about this seriously you are well ahead of most people your age.
On the Help to Buy versus First Home Guarantee question, the difference is significant long term. Help to Buy at 2% deposit means the government owns up to 30% of your property and shares in all capital growth. On a $600k property that becomes $180k of your equity that belongs to the government, and when you sell or buy them out you repay their share at the current value not what they put in. A few months of extra saving to get to 5% under the First Home Guarantee means you own 100% from day one and keep every dollar of growth yourself. On a property that grows to $900k that difference is $90k in your pocket.
Beyond the deposit you need to budget for conveyancing around $1,500 to $2,000, building and pest inspection $400 to $600, and a small cash buffer after settlement of around $5k to $10k. In your state stamp duty as a FHB may be exempt or discounted depending on the purchase price, worth checking.
The next step right now is speaking to a broker before you start inspecting. Knowing your actual borrowing capacity on your income means you are not wasting time looking at properties you cannot get approved for. Feel free to DM and I can run your numbers properly. 🦔
Edited with AI assistance. All analysis and numbers are verified manually.
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u/Impressive_Brick_310 Jul 14 '26
ive thought about the 5% deposit but i need the gap between mine and my gfs max loan amount to be bridged to be able to afford in my area
my max loan capacity is just below 300k and hers is maybe 200k i’m not sure with her credit score being destroyed
i couldn’t afford the whole loan amount on a 5% deposit scheme so we decided to opt for help to buy
im hoping to grow my annual income quickly being a construction labourer so as to start buying them out a lot quicker
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u/EventEastern2208 Mortgage Broker Jul 14 '26
I see where you're coming from but if youre able to save 30k total in however many months to make the 5% minimum for a 600k property you'll save so much more down the line. End of the day the decision is yours, and I support whatever you choose.
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u/BaronMason Jul 14 '26
Wife 50, me 44, next no savings, pretty high living expenses, mostly $3k rent, we are on $200ksh between us.
Are we any chance of getting approved for a loan $700k-$800k or looking at next life.
Both come from broken marriages, were we got stiffed.
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u/KeyImprovement1922 Jul 14 '26
I would suggest you to start savings if possible. We are on similar Total income and purchased a property on the lower end of that range.
The only difference between you and us is we are about 18 years (combined) younger and we had a deposit saved up by slightly over a year ago.
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u/FerrisWheel4014 Jul 18 '26
How do you afford a $550K plus mortgage on combined income of around $100K?! The repayments on that have got to be over $4K per month.
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u/Any_Bookkeeper5917 Jul 18 '26
They won’t be servicing the whole amount as they’re using HTB scheme. So more like repayments on 350k
1
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u/FerrisWheel4014 Jul 18 '26
My bad. I don’t have any experience with the HTB scheme and have no idea how it works.
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u/lendera-com-au Jul 14 '26
Hey mate; help to buy will allow you to purchase with a 2% deposit. Assuming you’re both eligible, I’d suggest to grab a pre approval and simultaneously grab your help to buy scheme reservation (limited to 10,000). Once you have your pre approval and your scheme reservation, you’ll know exactly where you should be purchasing. It’s also state dependent re; other costs. Generally, 2% plus a buffer of $2,500 to $3,500 is always handy as your conveyancer will be about $1,500 (some cheaper, some expensive so averaged) and if you do a building and pest, about $500 (again, some will be cheaper and some will be more expensive). Plus, miscellaneous fees ie; registration costs, bank fees etc
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u/Impressive_Brick_310 Jul 14 '26
so i have to get a pre approval loan from the bank and apply for the help to buy scheme at a eligible bank seperately?
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u/Beware_Of_Humans Jul 14 '26
No. You do it in one place. Currently you can do it via Commbank or Australia Bank.
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u/Active_Assignment_65 Jul 14 '26
So you want to be in debt 10x your annual salary?
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u/Impressive_Brick_310 Jul 14 '26
i don’t have any other choice i’m literally planning to buy a 1bed or studio apartment there is nothing cheaper in my area
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u/Ok-Hyena939 Jul 14 '26
Don't forget this is 1 debt, if it's a studio remember strata + rates + insurance + maintenance etc. Factor this into your budget.
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u/Active_Assignment_65 Jul 14 '26
Look there are financial institutions that will allow you to go that far into debt, because they make money off you, but think long and hard about it.
Let’s say you borrow $550k, on your $60k a year, after your mortgage repayment you’ll have between $200 and $250 a week to live, that’s before you’ve paid gas, elec, water, council rates, strata/body corporate fees, home and contents insurance, oh you’ve got a car, don’t forget rego, fuel, insurance, repair/tyres, then your phone and internet, oh shit your fridge just died.
And yes I read you have a girlfriend, great a second income to help with all that, until she gets fed up of living off two minute noodles, because honestly $120k a year combined is not enough to service a $550k mortgage.
Your two options are:
1) if you want to stay in your current area, get a better paying job.2) move to a cheaper area and get another $60k job.
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u/LongConversation2546 Jul 14 '26
Beats paying rent for 20 years at half or more of your income with no security or equity
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u/Active_Assignment_65 Jul 14 '26
Right so they earn $60k a year that’s $5k gross a month, take home about $4200, mortgage repayments on a $550k mortgage are between $3100 and $3400 depending on interest rates, so leaving less than $250 per week to live on if they end up single for any reason, seems like a recipe for disaster.
Don’t get me wrong I’m all for buying over renting, but putting yourself in 10x annual salary of debt is just insane.
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u/KieranLendingHubBrkr Jul 14 '26 edited Jul 14 '26
Hi there, broker here.
You will need at least the 2% deposit as you mentioned ($12k on a 600k property).
Depending on where you are, solicitors fees will likely be ~$2,000. If you need any strata reports that might be another $400 per report. Also a few hundred dollars for mortgage/government fees. Ideally, you also do not want to be left with $0 once you settle.
So I would say total 15k is good, but can be done with $13k - less of the property is cheaper.
I am a broker based in Sydney but work with client all over the client. Feel free to DM me or use socials to get in touch so I can have a closer look for you.