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Buying your first home - Greater Bank

5 steps to buying your first home

Buying your first home should be one of the most exciting experiences of your life, but you need the right advice to make sure the process runs smoothly.

Buying your first home - Greater Bank

Know your borrowing power

Before you start looking to find the house of your dreams, you should get to know your borrowing power to avoid disappointment.

Source your deposit

Generally you’ll need to have saved a minimum 5% of the purchase price as a deposit. A high-interest savings account, such as The Greater Bank Bonus Saver, is great for accumulating a deposit as it rewards your good saving habits by paying interest rate when you make a deposit and no withdrawals in a given month.

If your parents are happy to give you a hand in providing security for your loan, our Family Pledge option may mean you can reduce, or even eliminate, the deposit amount you need to contribute.

Use our Savings Goal Calculator

Check out our Bonus Saver

Calculate & get pre-approved

Use our borrowing capacity calculator to see how much you could borrow, then simply complete our form and speak with one of our lenders.

Use our Borrowing Power Calculator

Find the house for you

With your borrowing power in mind, you can get out there and see what the real-estate market has to offer!

Be sure that you do your research, identify suburbs that have properties in your price range, and view a number of houses to get a feel for the market.

Did you know: you're able to borrow up to 110% of the property value by asking your family to guarantee the home loan by using their property as security on your mortgage.

Make an offer

When you find a home that matches all your criteria, you are able to make an offer to buy.

Contracts

Before making your offer get a copy of the contract that you can supply to your solicitor or conveyancer.

Online tools

Using the tools available to you online, check out the recent sale prices of homes in the same area, and if you feel that an asking price is too high, don’t be afraid to start a conversation in the hope of getting a better deal. If you are planning to buy a house at auction, be sure to consult the listed agent for the property to confirm exactly what you will need to bring on the day. This way you will be able to finalise the sale should all go to plan.

Finalise your loan and the sale

Once you have agreed upon a sale price for your first home, you can complete the loan application process.

You should take the time to consider which loan is best for you and your financial situation.

 

Let our experts do the work

At Greater Bank, our expert lenders will do all the hard work for you, so that you can relax and plan your moving-in day.

What next?

Before you sign and exchange contracts you should also arrange to get a Pest and Building inspection.

Sign your contract

Once your loan is finalised, organise your compulsory home insurance, then you’re all ready to sign your contract. After this, the funds will be transferred and you can complete the sale.

Collect your keys and move in

Congratulations! You are now the owner of your very first home.

You have realised the Australian dream. Now just don’t forget the house-warming party… 🍾

If you feel ready to start a conversation with a lending expert about buying your new home, leave us some details via our enquiry form below!

Enquire now Enquire now

People also ask:

A home loan, or as it's often called; a mortgage is an amount of money provided by a lender (typically a bank) to an individual or couple for the purpose of buying a property. 

A home loan can be used to purchase a house or apartment that is already built, buy a property before it's built ('off the plan') or purchase a vacant block of land to build on.

It all boils down to:

  • How quickly you can save, and your desire to be in your first home sooner: So, what is the minimum deposit for a home loan? The figure of 20% being required for a deposit is a common one, but lenders across the country will usually accept a deposit somewhere in the vicinity of 5% to 25%. Of course, if you’re comfortable to wait until you have 20% of your purchase price saved, by all means go for it – you’ll be a more attractive prospect for many lenders. However, if you’re desperate to have your own place sooner, there are options available to you.
  • What your lender will do in terms of a deposit percentage: Different lenders will accept varying deposit amounts when applying for a home loan. For example, at Greater Bank, we’re able to accept deposits as low as 5%, however in situations like this, you may be required to purchase what’s known as Lender’s Mortgage Insurance (LMI). For more on LMI, see below. We also get asked a lot – “Can I get a home loan without a deposit?” and another option that may be open to would-be buyers looking to get into the market sooner is our Family Pledge Loan. In situations where a potential buyer isn’t able to save the full 20% deposit amount, they may be able to use equity in a parent or guarantor’s property to secure their own home loan. For more on our Family Pledge Loan, click here.
  • Whether you’re prepared to accept LMI: LMI is basically a one-off payment you make when you’re unable to save the full 20% deposit amount for your home. It protects the lender in the event you become unable to meet your loan repayments and default on the loan at any point. The amount you pay in LMI is linked to your saved deposit amount – the smaller your deposit percentage, the larger the amount you pay in LMI. The good thing is, however, that at Greater Bank, you are able to include your LMI payment in the total cost of your loan, meaning you can repay it over time in addition to your loan repayments, and get into your new place sooner.

Greater Bank offers a number of ways for customers to kick-start what will surely be one of life’s most exciting experiences – buying a home.

You can start a conversation with Greater Bank today by

Compare Home Loans

Compare 5 products
Featured rate
Great Rate Home Loan
Our simple, low rate loan that’s perfect if you’re after great value and no ongoing fees. Our Great Rate loan lives up to its name and offers flexible repayment and loan term options.
Ultimate Home Loan
Our ultimate in loans. Our Ultimate Home Loan offers the flexibility of fixed or variable rate, or a mixture of both. What's more, it features a linked offset account and free redraw available around the clock via online banking.
Line of Credit
Our Line of Credit helps you make the most of the equity in your home. Great if you’re thinking about renovating, investing, or just want more flexibility.
Ultimate Investment Home Loan
Our Ultimate Investment loan combines great value with a range of extra products designed to make investing easier.
Great Rate Investment Home Loan
With low-interest rates and no monthly or annual fees, we've made investment simple.
Interest rate 1.59 %# p.a.
Comparison rate 2.10 %^ p.a.
~2 year fixed discounted revert rate, owner occupied, principal and interest
Interest Rate 1.59 %# p.a.
Comparison rate 2.99 %^ p.a.
~2 year fixed discounted revert rate, owner occupied, principal and interest
Interest rate 3.90 % p.a.
Ultimate Line of Credit home loan base rate
Interest rate 1.89 %# p.a.
Comparison rate 3.14 %^ p.a.
~1 year fixed discounted revert rate, principal and interest
Interest rate 1.99 %# p.a.
Comparison rate 2.25 %^ p.a.
~2 year fixed discounted revert rate, principal and interest
Key Features
Great if you want a low-rate no-frills home loan.
Key Features
Great if you want a packaged home loan with a low rate and added benefits.
Key Features
Great if you want a continuous credit facility to access the equity in your home.
Key Features
Great if you want a great value packaged loan to invest in property.
Key Features
Great if you want a simple, no-nonsense investment loan with competitive rates.
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Yes. Available once loan reverts to a variable interest rate.
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$395 p.a. Package fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20%-25% dependent on security taken
Maximum loan term
N/A
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$10 per month
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Yes. Available once loan reverts to a variable interest rate.
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$395 p.a. Package fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
Enquire now Enquire now Great Rate Home Loan Enquire now Enquire now Ultimate Home Loan Enquire now Enquire now Line of Credit Enquire now Enquire now Ultimate Investment Loan Enquire now Enquire now Great Rate Investment Loan

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Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria. Greater Bank Limited ABN 88 087 651 956. AFSL/Australian credit licence No. 237476.

~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.

^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 90% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.

+Additional costs may apply if your loan has a fixed rate.

All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.