34 - Unlocking How Banks Decide What You Can Borrow as a First Home Buyer

The First Home 5% Deposit Scheme lets you buy your first home with a 5% deposit and no lenders mortgage insurance (LMI). It’s the topic first home buyers ask Jack and Chris about most. There’s plenty of information out there, but most of it is general, and it leaves you wondering how the scheme actually applies to you. Mortgage brokers Jack Elliott and Chris Bates answer the questions they hear most from first home buyers. They explain how the scheme really works, what you need saved beyond your 5% deposit, and the rules that could change your plan. Then they walk through the three biggest risks of buying with a small deposit, and the simple steps to protect yourself from each one. Whether you’re just starting to save, getting close to applying, or weighing the scheme against other pathways, this episode will help you decide if the 5% Deposit Scheme fits your plan. In this episode: 🔑 How the 5% Deposit Scheme works, and why 5% isn’t your total savings target 🔑 Whether using the scheme means a higher interest rate 🔑 Your options if your partner has owned a property before 🔑 How much savings you can keep as a buffer, and why lenders set different limits 🔑 The three biggest risks of buying with a 5% deposit, and how to protect yourself

Buying at auction works differently to a private sale. Once the hammer falls and you're the highest bidder, the property is yours: there's no cooling off period, and you can't pull out if your finance doesn't come through. You're also bidding in public against agents and auctioneers who've done this hundreds of times, so it's no wonder so many first home buyers find auctions daunting, or avoid them altogether. Mortgage broker Jack Elliott brings buyers agents Veronica Morgan and Meighan Wells back for the final part of the Buyers Agent Series, and their message is simple: auction is just another way to buy, and good preparation keeps you in control. They explain why your finance and property checks need to be sorted before auction day, not after, and the terms you can ask the seller to change beforehand. Then they walk you through the day itself, including how to decide the most you're willing to pay before the bidding starts. If auctions are common where you're buying, or the home you love is heading to one, this episode will help you walk in prepared and bid with confidence. In this episode: 🔑 How buying at auction differs from a private sale, and why the rules change from state to state 🔑 Why pre-approval alone isn't enough, and why your broker should check the property before you bid 🔑 Why an agent might ask for an offer before the auction, and what to find out before you make one 🔑 The checks to finish before auction day, and the changes you can ask for, like a 5% deposit instead of 10% 🔑 How to bid with confidence on the day, and why waiting too long to bid can cost you the property

Is now a good time to buy? It's the question Jack's hearing most from first home buyers right now. With headlines about falling property prices, negative equity and interest rates everywhere, sellers are sitting tight, and pre-approved buyers are struggling to find anything worth buying. Mortgage brokers Jack Elliott and Chris Bates cut through the noise to explain what's really going on: why so few properties are for sale this spring, what falling prices actually mean for you, and why trying to time the bottom of the market is riskier than it sounds. Then Jack shares four simple checks to help you work out whether now is the right time for you to buy. Whether you're actively searching, still getting your finances in order, or waiting to see what the market does, this episode will help you make the call based on your situation, not the headlines. In this episode: 🔑 Why so few properties are for sale right now, and who's still selling 🔑 Why the "prices are falling" headline is an average, and how to check what's happening where you're buying 🔑 Why nobody can pick the bottom of the market, and how waiting can mean missing out when confidence returns 🔑 Four checks to know if you're ready to buy 🔑 How buffers, a practised repayment and the right cover protect you from being forced to sell in a downturn

Making an offer is where a lot of first home buyers get stuck. How do you make an offer? How much do you offer? What do you say to the agent? Nobody explains the process, and once you're in it, things move quickly and the pressure builds. In this episode, Jack sits down with buyers agents Veronica Morgan and Meighan Wells to walk through the offer process for a private sale, from preparation through to negotiation. They cover what to have sorted first, including why your conveyancer needs to see the contract before you offer rather than after, and when an offer actually becomes binding, because it's not the moment the agent says yes. Veronica and Meighan also break down everything an offer contains beyond the price, from the deposit and settlement terms to inclusions, and how a lower offer with the right terms can beat a higher one. And they get into how agents run a negotiation, the questions to ask along the way, and what to say when you're asked whether you can go higher. Whether you're making an offer this weekend, still working out what you can afford, or somewhere in between, understanding the process is what helps you make confident decisions when you start offering and negotiating. In this episode: 🔑 What to have organised before you make an offer 🔑 The questions to ask an agent about their offer process 🔑 When an offer actually becomes binding, and why it changes state to state 🔑 What makes up an offer beyond the price 🔑 When an unconditional offer makes sense, and the finance risks to check with your broker 🔑 What to say when an agent asks if you can go higher

Most first home buyers walk into an open home already at a disadvantage. The styling is there to make you feel something, the agent is warm, and everything on show has been prepared by people who do this professionally. That's not a failure of judgement, it's a sales process working exactly as intended. What happens between that first inspection and signing a contract is where the real work sits, and it's the part almost nobody explains. Jack is joined again by buyers agents Veronica Morgan and Meighan Wells to walk through the checks that happen once you've found a property you're serious about. They cover what to assess at an inspection beyond the presentation, why a second look reveals things the first one never will, and what a building and pest inspection actually covers. They also get into the due diligence that has nothing to do with the building itself, from council approvals and zoning to what could be built behind your back fence, and the strata report checks that come with buying an apartment or townhouse. Whether you're already spending your Saturdays at open homes or still working out where to start, this is the stage where the right questions save you the most money. In this episode: 🔑 What to actually assess at an inspection once you look past the styling 🔑 What a building and pest inspection covers, and what it doesn't 🔑 Why the agent's report may not be working in your interest 🔑 The council, zoning and strata report checks that go beyond the property itself 🔑 How to weigh up what comes back and decide whether to proceed or walk away