Unlock the Keys to Your First Home as a Public Health Dentist

Understanding Your Position as a First Home Buyer

As a public health dentist, buying your first home represents a significant milestone in your career and personal life. Your stable employment within the public healthcare system positions you favourably when you apply for a home loan, but understanding the specific opportunities available to first home buyers can help you make informed decisions.

The journey of buying your first home involves more than finding the right property. It requires careful planning, understanding your borrowing capacity, and knowing which government incentives you can access as a first time buyer.

First Home Buyer Eligibility and Requirements

Before beginning your first home loan application, you need to understand the first home buyer eligibility criteria. Generally, you must:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Have never owned property in Australia
• Intend to live in the property as your principal residence for at least six months within the first year
• Meet the property price thresholds specific to your state or territory

For public health dentists, your employment status with government health departments typically provides lenders with confidence in your income stability, which can strengthen your first home loan application.

Government Schemes and First Home Buyer Grants

Several government initiatives exist to help first home buyers enter the property market:

First Home Owner Grants (FHOG)

First home owner grants vary by state and territory but typically provide financial assistance ranging from $10,000 to $20,000 for purchasing or building a new home. Eligibility depends on the property value and whether you're buying a new or established property.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme allows eligible first home buyers to purchase a property with a 5% deposit without paying Lenders Mortgage Insurance (LMI). This government guarantee can save you thousands of dollars and help you enter the market sooner.

Regional First Home Buyer Guarantee

If you're considering purchasing in regional areas where many public health dentistry positions are located, the Regional first home buyer Guarantee offers similar benefits to the standard scheme, with potentially higher property price caps.

Understanding Deposit Requirements

Traditionally, lenders prefer a 20% deposit to avoid LMI, but several low deposit options exist for first home buyers:

5% Deposit Options

Through government schemes or specific lender programs for healthcare professionals, you may qualify for low deposit loans requiring only a 5% deposit.

10% Deposit Options

Many lenders offer 10% deposit home loans, though you'll typically need to pay LMI unless you qualify for an LMI waiver available to some medical and dental professionals.

Gift Deposit

Most lenders accept a gift deposit from immediate family members to contribute toward your deposit, which can supplement your savings and help you reach your deposit goal more quickly.

First Home Buyer Stamp Duty Concessions

First home buyer stamp duty concessions can save you tens of thousands of dollars. Each state and territory offers different concessions, with some providing full exemptions for properties below certain price thresholds and partial concessions for properties within higher price brackets.

As a public health dentist, particularly if you're working in regional areas, you may find properties within the price ranges that qualify for substantial stamp duty savings.

First Home Super Saver Scheme

The first home super saver scheme allows you to save for your deposit within your superannuation account, taking advantage of the concessional tax treatment. You can contribute up to $15,000 per year (with a total cap of $50,000) and later withdraw these voluntary contributions plus earnings to put toward your first home purchase.

Creating Your First Home Buyer Budget

Developing a realistic first home buyer budget involves more than calculating your deposit. Consider:

• Stamp duty (if not fully exempt)
• Conveyancing and legal fees
• Building and pest inspections
• Loan application and establishment fees
• Moving costs
• Immediate maintenance or furniture requirements
• Ongoing costs including council rates, utilities, and insurance

Your budget should also factor in a buffer for unexpected expenses and ensure your mortgage repayments remain comfortable relative to your income.

Understanding Interest Rate Options

When comparing Home Loan options, you'll encounter different interest rate structures:

Variable Interest Rate

A variable interest rate fluctuates with market conditions and lender decisions. Benefits include flexibility to make extra repayments and access to features like an offset account or redraw facility.

Fixed Interest Rate

A fixed interest rate locks in your rate for a set period (typically 1-5 years), providing repayment certainty. This can help with budgeting, particularly during your first years of homeownership.

Split Loans

Many first home buyers choose to split their loan between fixed and variable portions, balancing security with flexibility.

Some lenders offer interest rate discounts to healthcare professionals, including dentists, which can reduce your borrowing costs over the life of your loan.

Essential Loan Features for First Home Buyers

Offset Account

An offset account is a transaction account linked to your home loan. The balance reduces the loan amount on which interest is calculated, potentially saving you thousands in interest over time.

Redraw Facility

A redraw facility allows you to access additional repayments you've made above your minimum requirement, providing financial flexibility if unexpected expenses arise.

Getting Pre-Approval

Obtaining pre-approval before you start house hunting provides several advantages:

• Confirms your borrowing capacity
• Demonstrates to vendors that you're a serious buyer
• Helps you focus your search on properties within your price range
• Speeds up the final approval process once you find your property

Pre-approval typically remains valid for three to six months, giving you time to find the right property.

Your First Home Buyer Checklist

Before submitting your Home Loan application, ensure you have:

1. Checked your credit score and addressed any issues
2. Saved your deposit and documented the source of funds
3. Gathered employment documentation (payslips, employment contract, tax returns)
4. Researched available government schemes and grants
5. Calculated your borrowing capacity and comfortable repayment amount
6. Compared Home Loan options from multiple lenders
7. Obtained pre-approval
8. Engaged a conveyancer or solicitor
9. Arranged building and pest inspections
10. Prepared for ongoing homeownership costs

Working with Specialist Mortgage Brokers

As a public health dentist, working with mortgage brokers who understand the dental profession can provide distinct advantages. They have established relationships with lenders who value the stability of your employment and may offer preferential terms to healthcare professionals.

Specialist brokers can also help you identify which combination of government schemes, lender programs, and loan features will work optimally for your circumstances, potentially saving you considerable time and money throughout the Home Loan application process.

Call one of our team or book an appointment at a time that works for you to discuss your first home purchase and explore the Home Loan options specifically available to dental professionals.