As a bricklayer, you've spent years building homes for others. Now it's time to secure your own piece of the Australian property market. Buying your first home requires careful preparation, and understanding your options can make all the difference in your financial situation.
Understanding Your Borrowing Capacity
Your income as a bricklayer might fluctuate seasonally or between projects, but this doesn't disqualify you from homeownership. A Home Finance & Mortgage Broker who understands the trades industry can help assess your true borrowing capacity by looking at:
• Average income over the past two years
• Consistent work history and client relationships
• Future earning potential in your trade
• Current expenses and existing debts
Mortgage Brokers with experience in the trades sector know how to present your financial profile to lenders in the most favourable light. They can access Home Loan options from banks and lenders across Australia, including those that specifically cater to tradies.
Getting Your Finances in Order
Before you start house hunting, gather your financial documents. You'll need recent bank statements, tax returns, and proof of income. As a tradesperson, this might include:
• Business Activity Statements if you're self-employed
• Contracts showing ongoing work commitments
• Accountant-prepared financial statements
• Evidence of regular client relationships
Having these documents ready will streamline the application process when you're ready to apply for a home loan.
First Time Home Buyer Benefits
As a first-time buyer, you're entitled to several government incentives designed to help you enter the property market:
First Home Owner Grants (FHOG): Each Australian state offers different grant amounts, typically ranging from $10,000 to $25,000 for new home purchases.
Home Guarantee Scheme: This federal program allows eligible first-time buyers to purchase with as little as 5% deposit, with the government guaranteeing the remaining 15% to reach the required 20% deposit.
First Time Home Buyer Programs: Various lenders offer specific packages for first-time buyers, including reduced fees and interest rate discounts.
Stamp Duty Concessions: Most states provide stamp duty reductions or exemptions for first-time buyers within certain price ranges.
Understanding Loan to Value Ratio (LVR)
The loan to value ratio represents how much you're borrowing compared to the property's value. A lower LVR typically means:
• Better interest rate options
• No requirement for Lenders Mortgage Insurance (LMI)
• More loan products available to you
If your deposit is less than 20%, you'll likely need to pay LMI. However, some first time home buyer schemes can help you avoid this additional cost.
Choosing Your Interest Rate Structure
When applying for a home loan, you'll need to decide between:
Variable Interest Rate: Fluctuates with market conditions, potentially saving you money when rates fall but increasing payments when they rise.
Fixed Interest Rate: Locked in for a set period, providing payment certainty but potentially missing out on rate decreases.
Many borrowers choose a split loan, combining both variable and fixed portions to balance security with flexibility.
The Pre-Approval Advantage
Before you start seriously house hunting, get pre-approved for your first Home Loan. Pre-approval:
• Shows sellers you're a serious buyer
• Gives you confidence about your price range
• Speeds up the final application process
• Helps you understand the exact loan amount you qualify for
A mortgage broker can help you get pre-approved across multiple lenders, giving you access to banks and lenders nationwide.
Additional Features to Consider
When comparing home loan packages, look for features that could benefit your financial situation:
Offset Account: Links to your home loan, using your savings to reduce interest charges on your mortgage balance.
Redraw Facility: Allows you to access any extra payments you've made on your loan.
Investment Loan Options: If you're considering purchasing an investment property in the future, choose a lender that offers investment loan application processes.
Working with Industry Specialists
As a bricklayer, partnering with a finance and mortgage broker who understands the trades industry provides significant advantages. They know which lenders are most receptive to tradie applications and can present your income in the most favourable way possible.
Specialist brokers also understand the cyclical nature of construction work and can match you with lenders who recognise the stability and earning potential within the trades sector.
Buying your first home is one of the most significant financial decisions you'll make. With proper preparation, understanding of available programs, and the right professional support, you can successfully transition from building homes to owning one.
Call one of our team or book an appointment at a time that works for you to discuss your first home buying options and start your journey to homeownership.
