Costs involved in buying your first home - Queensland

May 27, 2014
Annette Kennedy

John Kennedy – your Mudgeeraba home loan specialist looks at some of the costs to budget for when buying a first home.


First home deposit – the bigger, the better

 Prior to the global financial crisis of 2007/08, it was possible to borrow 100% of the price of your property - but not anymore.  Most lenders require you to have a minimum deposit of 5% of the purchase price – and as we’ll see, that’s not always a bad thing.


More deposit will equal less cost to you

In fact, there are valuable advantages to saving a bigger deposit for your first home. Let’s take a look at the key benefits:

  • Borrowing less will mean lower repayments for you.
  • When you have a bigger deposit you have a greater range of lenders to choose from. Mortgage Choice in Mudgeeraba will be able to source the best loan for your needs from our panel of 27 lenders. That lets you maximise the benefit of wide choice.
  • Minimise Lenders Mortgage Insurance (LMI).  This is an insurance that is a one off payment by you to protect the lender if repayments aren’t met.  The higher your deposit, the lower your LMI.  Indeed, you pay no LMI at all if your deposit is 20% or higher – and that’s a real incentive to save more of a deposit.


Costs involved in purchasing a home

Buying a first home on the Gold Coast is an outstanding investment in your future. It’s also an important financial commitment, and there is a range of upfront costs you should budget for.


The main home buying costs you should consider in your saving plan include:  

  • Stamp duty (not required on owner occupier first homes up to $500K)
  • Building and Pest Inspections
  • Conveyancing costs – the legal paperwork
  • Home and contents insurance
  • Application fees – depending on your choice of lender
  • Lenders Mortgage Insurance - depending on your deposit


Let’s look at some figures

Here is a guide to help you get started with your saving plan.  The figures below are indicative only.  Each lender and loan has its own specific features.  Some lenders allow the LMI to be added to the loan, others require you to have the 5% deposit PLUS pay the LMI upfront.


House Price

5% deposit

       Approx. LMI with 5% deposit











Again this is only a guide, if these figures seem out of reach there are other options available like parents helping out as guarantors.


Achieve your goal of buying a first home

John Kennedy of Mortgage Choice in Mudgeeraba, Robina and surrounding Gold Coast suburbs, has over 12 years’ experience helping first home buyers secure their first home. Call John today on 07 5559 2563 or send him an email at and let him help you realise your dream of home ownership.

Posted in: First home buyers

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