First Homeownership Goals: How to Set and Achieve Them

First Homeownership Goals 2025
First Homeownership Goals: How to Set and Achieve Them

Buying your first home is an exciting milestone, but achieving it requires careful planning. Setting first-homeownership goals helps you stay on track and make informed financial decisions. From saving for a deposit to understanding government incentives, each step plays a crucial role in turning your dream into reality.

Define Your Homeownership Goals

Before starting your home search, it is essential to consider what matters most to you. Ask yourself:

  • What type of property suits your needs? (Apartment, townhouse, house?)
  • Where do you want to live? (Close to work, family, or public transport?)
  • What features are essential? (Number of bedrooms, garage, outdoor space?)

Having clear first-homeownership goals will help you establish a realistic budget and timeline and knowing your priorities makes the home search process more efficient, preventing wasted time on properties that don’t align with your vision. Furthermore, having defined goals allows you to make informed decisions at every stage of the process.

Set a Savings Target for Your Deposit

A home deposit is typically 20% of the purchase price, but some lenders accept as little as 5% with Lenders Mortgage Insurance (LMI). Understanding the deposit requirements allows you to plan your savings strategy effectively. Moreover, having a solid savings plan in place can help you feel more confident when making financial decisions.

What is LMI?

LMI is a one-off fee that protects the lender if you default on your loan. It’s required when your deposit is less than 20%. While it increases upfront costs, LMI allows first-home buyers to enter the market sooner.

Example:
  • A $600,000 home requires a $120,000 deposit at 20%.
  • A 10% deposit means saving $60,000, but LMI applies.
Tip:

A larger deposit leads to lower repayments and avoids LMI, helping you achieve your first homeownership goals faster. In addition, the more you save, the better your financial position is when securing a loan.

Budget and Reduce Unnecessary Spending

Smart budgeting is key to building your deposit. By tracking income and expenses, you can identify areas to save and cut unnecessary spending. Additionally, developing good spending habits now will benefit you long after you’ve purchased your home.

Simple ways to cut costs:
  • Reduce takeaway meals and dining out.
  • Cancel unused subscriptions.
  • Automate monthly savings.

Sticking to a disciplined budget accelerates savings, making your first home ownership goals more achievable. Furthermore, consider using budgeting apps to track expenses and stay accountable.

Check Your Borrowing Power

Your borrowing capacity depends on multiple factors, including income, expenses, credit history, and debts. A loan pre-approval provides a clear idea of how much you can afford. Without a pre-approval, you may end up looking at properties that exceed your budget, which can lead to disappointment.

Action Step:

Speak to a mortgage broker to explore loan options that align with your first homeownership goals. Additionally, a broker can help you understand different loan features, interest rates, and repayment terms, ensuring you make the best financial choice.

Research Government Grants and Incentives

Government support can make home ownership more affordable. Several incentives exist to assist first-home buyers, making it easier to enter the market.

  • First Home Owner Grant (FHOG):

          A lump sum for eligible first-home buyers.

  • First Home Guarantee: 

         Buy with a 5% deposit and avoid LMI.

  • Stamp Duty Concessions:       

         Reduced or waived stamp duty in some states.

These initiatives help you meet your first homeownership goals sooner. Therefore, checking what’s available in your state ensures you take full advantage of financial support.

Build and Maintain a Strong Credit Profile

Lenders assess your credit history when approving home loans. A strong credit score increases your chances of securing a competitive interest rate. More importantly, good credit habits now will serve you well for future financial decisions.

Ways to improve your credit score:
  • Pay bills and credit cards on time.
  • Avoid multiple loan applications in a short period.
  • Reduce outstanding debts.

Maintaining a healthy credit score aligns with your first homeownership goals and gives you access to better loan options. Furthermore, a good credit score can save you thousands in interest payments over the life of your loan.

Create a Timeline and Stay Accountable

Breaking your journey into steps keeps you motivated. A structured plan will help you stay on track, making it easier to monitor progress.

📅 6 Months: Increase savings, reduce expenses, and check your credit score.
📅 12 Months: Reach deposit target, obtain loan pre-approval.
📅 18 Months: Start house hunting, finalize loan approval.
📅 24 Months: Purchase your first home!

Final Thoughts

Achieving your first home ownership goals requires careful planning, financial discipline, and expert guidance. Homeownership is a significant financial commitment, but with the right strategy, it’s within reach. Moreover, staying focused and taking one step at a time will ensure long-term success.

Every dollar saved brings you closer to owning your dream home. Need expert advice? Bayland Finance can help you navigate your options and find the best path to owning your first home. Contact us today!

Outgrowing Your Home: Should You Upgrade or Renovate?

Outgrowing Your Home Blog 2024 (Website)

Outgrowing Your Home: Should You Upgrade or Renovate?

Outgrowing Your Home: Should You Upgrade or Renovate? As families grow, lifestyles change, or space becomes limited, many homeowners find themselves outgrowing their home and asking, “Should I upgrade or renovate?” Both options have financial implications, and understanding the pros and cons from a finance perspective can help you make the best choice for your situation.

Buying a Bigger Home: Pros & Cons

Pros:

More Space Immediately – Purchasing a larger home means you get the additional space straight away, without the disruptions of a renovation.

Potentially Better Location – Moving gives you the chance to upgrade your location, whether that’s closer to schools, work, or lifestyle amenities.

Fixed Costs – Once you’ve bought your new home, there are no unexpected renovation costs or budget blowouts to worry about.

Higher Long-Term Value – A bigger home in a sought-after area may have stronger long-term capital growth.

Cons:

Higher Costs Upfront – Purchasing a bigger home involves significant costs, including stamp duty, legal fees, agent commissions, and moving expenses.

Increased Mortgage Payments – If you’re upgrading, you may need a larger loan, meaning higher repayments.

Market Conditions – If you’re buying in a strong market, you may pay a premium and be subject to rising interest rates.

Emotional Toll of Moving – Uprooting your family, changing schools, and adjusting to a new community can be stressful.

Staying and Renovating: Pros & Cons

Pros:

Cost-Effective (In Some Cases) – Renovating can be more affordable than buying a new home, especially when avoiding stamp duty and other buying costs.

Stay in a Familiar Location – You get to keep your community, school catchment, and local conveniences.

Increase Property Value – A well-planned renovation can boost your home’s value and make it more appealing for future buyers.

Customisation – Renovating allows you to design your space exactly how you want it, rather than compromising on a new home’s layout.

Cons:

Unexpected Costs – Renovation budgets often blow out due to unforeseen expenses, such as structural issues or council approvals.

Disruptions – Living through a renovation can be inconvenient and stressful, especially for larger projects.

Limited Return on Investment – If your home is already at the top end of value for your suburb, overcapitalising could make it harder to recoup your renovation costs when selling.

Financing Challenges – Unlike a straightforward mortgage, financing a renovation often requires construction loans or equity redraws, which can be complex.

Financing Your Decision

Upgrading Your Home:

If you’re planning to buy a bigger home, you’ll need to consider:

  • How much equity you have in your current property
  • Your borrowing capacity and potential mortgage repayments. To learn more about what you can borrow, click here
  • The total costs involved, including stamp duty and moving expenses
  • Whether you should sell your current home first or buy before selling
Financing a Renovation:

If you choose to renovate, your financing options may include:

  • Using Existing Home Equity – If you have enough equity, you might be able to refinance your loan to fund the renovation.
  • Construction Loans – These provide funding in stages as the renovation progresses.
  • Personal Loans or Credit – While an option, they tend to have higher interest rates and should be carefully considered.
Which Option Is Right for You?

There’s no one-size-fits-all answer. The right decision depends on your financial position, lifestyle needs, and long-term goals.

If your home no longer meets your needs but you love your location, a well-planned renovation could be the answer. If your space limitations are significant or you’re looking for a fresh start in a new area, upgrading may be the better option. If you are outgrowing your home, it’s important to ask yourself, “Should I upgrade or renovate?” and weigh up the financial implications of both choices.

At Bayland Finance, we can help you explore your financing options, whether you’re looking to buy a bigger home or fund a renovation. Get in touch with our team to discuss the best solution for you.

Average Loan Sizes & Investor Crackdown

While all eyes were on the Reserve Bank’s cash rate decision on February 18, there were also some other important stories in the news recently:

  • Average loan sizes in each state
  • Foreign investors banned from buying existing homes
  • Mortgage reprieve for younger borrowers
  • More consumers purchasing cars

Owner-occupiers are stepping up in the property market as investors are stepping down, according to new data from the Australian Bureau of Statistics, while average loan sizes now range from $465,000 in the Northern Territory to $811,000 in New South Wales.

During the final three months of the year, loan commitments fell 4.5% quarter-on-quarter for investors while rising 2.2% for owner-occupiers, reflecting a changing dynamic in the market.

Meanwhile, the average mortgage across Australia reached a record $666,000 at the end of 2024, an increase of 8.5% on the year before.

Given those large loan sizes, accumulating a deposit can be hard. So here are five things you can do to either save your deposit faster or reduce the size of the deposit required:

  • Ask me about borrowing strategies that require less than a 20% deposit
  • Speak to your parents about a guarantor home loan, which could potentially reduce your share of the deposit to 5% or even 0%
  • Consider buying in conjunction with a partner, relative or friend
  • Research the Home Guarantee Scheme, which lets eligible buyers purchase a property with just a 5% deposit without having to pay lender’s mortgage insurance
  • Increase your savings rate, by looking for opportunities to cut your spending and grow your income

The federal government has announced plans to ban foreign investors from buying established homes and to crack down on illegal land banking, in an effort to cool demand and increase supply.

Foreign investors need to apply for approval before purchasing residential real estate in Australia. Under the current rules, they’re generally restricted to buying new properties although they are allowed to buy established properties under certain circumstances. Under the new rules, they will be banned from buying established properties between 1 April 2025 and 31 March 2027; a review will then be conducted to decide whether to continue the ban.

The government will also take action against foreign investors who buy vacant land, sit on it and then sell it for a profit, rather than following the regulations that require them to put the land to productive use within reasonable timeframes. To enforce the policy, the government will provide funding to the Australian Taxation Office to do more auditing and compliance work with foreign investors.

“This is all about easing pressure on our housing market at the same time as we build more homes,” Housing Minister Clare O’Neil said.

“These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes.”

Treasurer Jim Chalmers has instructed financial regulators to make it easier for Australians with student debt to take out a mortgage.

Currently, the banking regulator, APRA, and the financial services regulator, ASIC, expect lenders to take HELP-HECS debt into account when assessing home loan applications. However, Dr Chalmers said he wanted lenders to be able to exclude student debt repayments from serviceability assessments when they expected the borrower to pay off the debt in “the near term”, the Australian Financial Review reported.

“I’ve agreed these changes in discussions with regulators and convened the banks to discuss them,” Dr Chalmers said. “People with a HELP debt should be treated fairly when they want to buy a house and we’re working with the regulators to make sure they are.”

While Dr Chalmers has not indicated when these changes would take effect, if you contact me, I can calculate how much you can borrow now and estimate how much you might be able to borrow under the new rules.

There was a sharp rise in the number of consumers taking out car loans in 2024, as motorists purchased a record number of new vehicles.

Australians bought an unprecedented 1,220,607 new vehicles last year, with Toyota, Ford, Mazda, Kia and Mitsubishi being the most popular brands, according to the Federal Chamber of Automotive Industries.

As a result, consumers took out a record $4.7 billion of car loans in the December quarter, which was 13.0% more than the year before, according to the Australian Bureau of Statistics.

Interestingly, there was an even larger rise in personal loans taken out to purchase holidays, household goods and other items – that rose by 25.9% to a record $3.9 billion.

If you’re looking to secure funds for a car or a consumer purchase, please get in touch, as a car loan or personal loan may be a better option than a credit card.

High Earners: How to Buy a Home with Low or No Deposit

How to Buy a Home with Low or No Deposit Blog Post 1

High-Income Earners: How to Buy a Home with Low or No Deposit

Buying a home can be challenging, even for high-income earners. Many find saving enough for a deposit difficult due to high living costs, lifestyle choices, and other financial commitments. However, there are options available that can make homeownership possible with a smaller deposit. This article will explain how high-income earners can buy a home with low or no deposit, focusing on the benefits of the Home Affordability Solutions (HAS) scheme.

Why High-Income Earners Are Still Renting

It may seem surprising, but many high-income earners continue to rent. Despite earning more, they face challenges such as high living costs in major cities, rising property prices, and strict lending rules that require large deposits. Additionally, lifestyle choices like frequent travel, dining out, or paying off loans often take priority over saving for a deposit.

High Costs of Living and Financial Commitments

Living in cities with high living expenses makes saving for a home deposit difficult. For high-income earners, maintaining an expensive lifestyle often means little is left over for savings. Car loans, credit card debt, and other financial commitments also eat into potential savings, making it harder to accumulate the necessary funds for a deposit.

Rising Property Prices and Strict Lending Rules

Property prices in desirable areas tend to rise faster than people can save, creating a gap that’s tough to bridge. On top of this, banks often require large deposits, making it difficult for high-income earners to get into the property market. This combination of factors leaves many still renting, even though they may have the income to afford mortgage repayments.

How to Buy a Home Blog Post 2024 (2)
How to Buy a Home with a Small Deposit

The Home Affordability Solutions (HAS) scheme offers a way for high-income earners to purchase a home with a much smaller deposit (Can be as low as 2.5%). Instead of the usual 20% deposit required by most lenders, the HAS scheme allows you to buy a home with a lower deposit. This is particularly helpful for young professionals, families, and others who struggle to save a large sum upfront.

How to Buy a Home Blog Post (3) 2024
Key Features of the HAS Scheme
  • Low Deposit Requirement: The HAS scheme lets you buy a home with a lower deposit compared to the standard 20%.
  • Investor Support: An investor, through a registered trust, provides additional financial backing to help meet deposit requirements.
  • Accredited Brokers: HAS works with accredited brokers who guide you through the process, ensuring you make informed decisions and secure the best loan.
  • Lower Interest Rates: You can benefit from lower interest rates, providing financial stability and predictable repayments over time.
  • Refinancing Options: After three years, you have the option to refinance, possibly securing better terms and lowering your costs.
  • Government Grants: You can access various government grants to further boost your deposit, making homeownership more attainable.
How the HAS Scheme Makes Homeownership Easier

For high-income earners who want to know how to buy a home with low or no deposit, the HAS scheme provides an ideal solution. It addresses the challenge of saving a large deposit by offering flexible loan options and lower initial financial requirements. With support from investors and accredited brokers, the HAS scheme simplifies the process of buying a home, ensuring you can take that first step into homeownership with confidence.

Steps to Get Started with HAS
  1. Review Your Finances: Start by assessing your current income and savings to see if you meet the scheme’s requirements.
  2. Consult with a Broker: A certified broker will guide you through the HAS scheme, helping you develop a tailored plan based on your financial situation.
  3. Secure Your Deposit: Explore all available options, including government grants and other financial incentives, to boost your deposit.
  4. Complete Your Loan Application: Work with your broker to complete your loan application and submit the necessary documentation.
  5. Plan for Future Expenses: Once approved, budget for your monthly mortgage payments and plan for other financial responsibilities related to homeownership.
Taking the Next Step

For high-income earners, the path to homeownership doesn’t have to be blocked by a large deposit requirement. With the HAS scheme, you can buy a home with a much smaller deposit and begin your journey to owning a property. At Bayland Finance, we’re here to help. Contact our team of experienced mortgage professionals to learn how high-income earners can buy a home with low or no deposit and start planning for your future today.

For further information about the scheme https://yourhas.com.au/

Unlock Your Property Dreams with Rentvesting!

Unlock Your Property Dreams with Rentvesting!

Saving for a deposit for your first home requires discipline. It can be hard work, especially when the market dynamics are influenced by interest rate movements or growing values in your target suburbs.

But don’t let frustration signal the end of the road for your ownership ambitions. As experienced mortgage brokers, we believe you can modify your strategy to ensure you can climb onto the property ladder.

One option you could consider is becoming a ‘rentvestor’. Rentvesting is where you purchase a property within your budget and rent it out. You then rent where you want to live while reaping the benefits of being a property owner and landlord.

It can be a great approach for those who want to stay in busier areas, such as major cities, yet remain focused on owning real estate.

Below are some tips and watch-outs to help you consider a rentvesting strategy.

THE POSITIVES:

  • THINK LONG-TERM: Capital gain from property takes time, so make sure it matches your other personal and financial goals.
  • PROPERTY CHOICE: Your purchase must be attractive to tenants. The property will crush your cash flow if it’s vacant. Research the types of homes popular with renters including agents and reviewing rental listings for the area.
  • LOCAL SERVICES: Ensure your property is near shops, schools and other amenities. Local transport is not the best in many areas but good transport can help attract good tenants.
  • FINANCIAL BENEFITS: A good accountant will also maximise the tax benefits of being a landlord. Make sure you get tax advice before you purchase. Don’t assume! Your accountant is best placed to know your circumstances.

THINGS TO WATCH:

  • CASH SHORTFALL: The rent may not cover the entirety of the mortgage. Make sure you have the cash flow to cover any shortfall and know how long you can cover a gap before it becomes personally unsustainable.
  • LOAN COSTS: Lenders tend to charge a higher interest rate on an investment loan, so consider whether living in the property for a while is an option for the first year or two.
  • MANAGEMENT FEE: Many clients use a property manager to look after their property and pay 6-10% of the rent in fees. A good property manager will help set the rent, negotiate with potential tenants and handle maintenance. Make sure you budget for them.
  • UPKEEP COSTS: If you buy an apartment, predetermined strata fees apply and should be in your budget calculation. With a house, maintenance costs can be higher. Make sure a broker hot water service doesn’t tip your finances over the edge.

If you would like to discuss any of the above, please reach out by requesting a call back below.

Unlocking Home Loans for the Self-Employed on the Mornington Peninsula

Dreaming of owning a piece of paradise on the picturesque Mornington Peninsula? For self-employed individuals, the journey towards securing a new home loan might appear intricate, but fear not – Bayland Finance is here to guide you through the process and make your dream a reality. With a deep understanding of the unique financial landscape faced by self-employed borrowers, we offer tailored solutions that go beyond traditional lending norms.

Navigating Income Documentation Challenges:

For the self-employed, proving income can be a bit more complex compared to salaried individuals. Many lenders typically require two years’ worth of tax returns to establish your income stability. However, the world of entrepreneurship is dynamic, and waiting for your most recent tax return to be lodged might not be an option when the perfect property comes along.

We understand that your business success might not always align with tax return schedules. This is why we offer a range of solutions that allow us to proceed without waiting for your latest tax return. Our aim is to ensure that you don’t miss out on the opportunity to purchase your dream home just because of timing constraints.

Diverse Income Documents Accepted:

When it comes to self-employed borrowers, traditional income documents like tax returns are just one piece of the puzzle. We recognize that your financial situation might be best represented by other documents. These could include your most recent set of financial statements, management accounts, Business Activity Statements (BAS), bank statements, and even payslips in some cases.

Bayland Finance has years of experience working with self-employed individuals and understands the intricacies of their financial situation. Our team is well-versed in evaluating various forms of income documentation to present a comprehensive and accurate picture of your financial capabilities.

Our Expertise, Your Advantage:

At Bayland Finance, we pride ourselves on our deep experience with self-employed borrowers. Our commitment to understanding the unique challenges faced by entrepreneurs sets us apart. We recognise that your income might not fit the traditional mould, and we have the knowledge and expertise to find lenders who appreciate the diversity and dynamism of your financial situation.

What’s more, our services aren’t limited to home loans alone. Whether you’re a self-employed individual looking to secure a mortgage for your dream property, or a business owner exploring commercial property options, we’ve got you covered. Our team is equipped to handle both residential and commercial inquiries, making us a one-stop solution for all your property-related financial needs.

A Comprehensive Team, Ready for You:

Navigating the home loan landscape can be daunting, especially when you’re self-employed. This is why Bayland Finance offers you more than just a lending hand. Our team includes conveyancers, lending specialists, accountants, and financial advisors who work in synergy to provide you with a comprehensive and holistic approach.

From the moment you step into our office, you’ll be met with professionals who understand your unique needs. Our lending specialists know the financial market inside out and will match you with the right loan that suits your self-employed status. Our accountants and financial advisors ensure that your loan aligns with your broader financial goals. And our conveyancers walk you through the legal intricacies of property transactions, making the process smooth and hassle-free.

Conclusion: Your Dreams, Our Expertise

As a self-employed individual, your financial journey is distinct and deserves tailored attention. The Mornington Peninsula offers a serene backdrop for your dream home, and with Bayland Finance by your side, that dream is well within reach.

Whether it’s finding lenders who appreciate diverse income sources, utilising a variety of income documents, or simply benefiting from our comprehensive team’s expertise, we’re here to make your home loan journey seamless. Our experience, dedication, and commitment to your success set us apart as your go-to partner on the path to homeownership. Don’t let your entrepreneurial spirit hold you back – contact Bayland Finance today and embark on a home loan journey designed just for you.

7 Reasons to use a Mortgage Broker

Your Financial Compass, Without the Price Tag: We’re a Free Service

Are you considering taking the big step towards homeownership? Or perhaps you’re contemplating a strategic investment in the property market?

Either way, navigating the labyrinth of home loans, interest rates, and financial jargon can be a daunting task. This is where mortgage brokers come in – your trusted allies in the world of property finance. With over 70% of loans now being submitted through mortgage brokers, it’s clear that they’re not just a trend, but a strategic advantage. Let’s delve into why using a mortgage broker can be your key to unlocking a seamless and customised home financing journey.

At Bayland Finance, we believe that everyone deserves a secure financial future.
Our team of lending specialists are dedicated to helping you every step of the way – from first home buyers to those looking to buy their dream home, or build their investment property portfolio.

With our personalised approach and commitment to customer service, we can help you navigate the complex world of lending and find the best solutions to achieve your future goals.

1. We Educate and Advise

Imagine having a personal guide through the intricate maze of home loan options, policies, and lenders. Mortgage brokers are exactly that – experts in the field who specialise in connecting you with the most suitable loan options. They have an in-depth understanding of the lending landscape and stay updated on the latest market trends. This wealth of knowledge is invaluable in helping you make informed decisions that align with your financial goals.

2. Tailored Solutions, Personalised Service

No two individuals have the same financial situation or aspirations. A mortgage broker recognises this and tailors solutions to match your unique needs. They take the time to understand your financial position, future plans, and preferences, and then match you with loans that fit like a glove. This personalised service ensures that you’re not just settling for a loan, but embracing a financial solution that complements your lifestyle.

3. Unbiased Advice

Mortgage brokers are not affiliated with any specific lender, which means their advice is unbiased and driven solely by your best interests. They act as intermediaries between you and the lenders, negotiating terms and rates on your behalf. This transparency ensures that you’re presented with a range of options and can make an educated choice that aligns with your financial wellbeing.

4. Saves You Time and Effort

The search for the perfect home loan can be time-consuming and overwhelming. Mortgage brokers simplify the process by doing the legwork for you. They compare loan options, negotiate rates, and manage paperwork, saving you precious time and sparing you from the stress of dealing with banks and lenders directly.

5. Maximising Your Borrowing Capacity

One of the crucial aspects of securing a home loan is understanding your borrowing capacity. Mortgage brokers have the expertise to evaluate your financial situation and help you determine how much you can borrow. This enables you to explore homes that might have seemed out of reach, ultimately bringing you closer to the house of your dreams.

6. Access to a Wide Network

Mortgage brokers have access to a broad network of lenders, including those that may not be easily accessible to the general public. This means you can explore a diverse range of loan products, interest rates, and terms, increasing your chances of finding a loan that aligns with your financial goals.

7. Smooth and Efficient Process

From the initial consultation to the final settlement, mortgage brokers streamline the loan application process. They are well-versed in the documentation requirements and can guide you through each step, ensuring that nothing is missed. This efficient handling minimises the chances of delays and roadblocks along the way.

Why Choose Bayland Finance as your Mortgage Broker?

When it comes to selecting a mortgage broker, experience and reputation matter. Bayland Finance boasts over 16 years of expertise in the mortgage broking arena, positioning them as industry leaders.

Their commitment to exceptional customer service and tailored solutions has earned them recognition as the MFAA mortgage broker of the year winner for the regional VIC/TAS area. This accolade is a testament to their dedication to helping clients achieve their property finance goals with a personal touch.

Navigating the complex world of home financing can be made simpler, smoother, and more rewarding with the assistance of a mortgage broker. These experts offer not just financial advice, but a partnership that is committed to your financial success. With a vast network of lenders, personalised service, and an unwavering dedication to your needs, mortgage brokers like Bayland Finance are the bridge between you and your dream home. So, why not embrace their expertise and embark on your home financing journey with confidence? Your financial future deserves nothing less.