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What to consider before taking on your first home loan

You’ve been saving your hard-earned cash and keep having dreams about taking that pic in front of the ‘sold’ sign of your first home, but there’s a pretty important thing to think about first – getting a home loan.

To ensure you’re ready to take on a mortgage, here’s a quick and handy list of what you need to remember.

Identity and residency

To get a home loan with us, you must be over the age of 18 and live in Australia. Plus, you have to be an Australian or New Zealand citizen, or permanent Aussie resident.

Employment status

Whether you’re self-employed or PAYG – we can help you out. For PAYG we’ll need your two most recent pay slips (which should be no more than two months old). If you’re self-employed, you need to show us you’ve been trading for two years and have two years’ worth of tax returns.

The all-important deposit

At UBank, we require a deposit of at least 20% of the value of your home. That means if you want to buy a $500,000 property, you’ll need a deposit of at least $100,000 to secure the loan. With a 20% deposit, you won’t have to pay lender’s mortgage insurance with most lenders which could save you thousands. Also, we want to make sure you can easily manage your home loan, so the bigger your deposit the smaller your repayments.

Don’t forget to include additional costs like stamp duty and title registration fees, as they’ll all add to your upfront costs. It’s easy to work these out ahead of time by using our handy fees and deposit calculator.

Location, location, location

It’s a good idea to keep an eye on the suburb/s you’re considering buying in. This will give you a great indication of what properties are selling for, so you can figure out what you should or shouldn’t pay. Once you have a ball park figure, use our borrowing power calculator to work out how much we might lend to you based on factors like your deposit amount, income and number of dependents.

Calculating your expenses

Our Home Loan Specialists say one of the biggest hurdles for people in preparing to buy a home is calculating their expenses.

“Generally if they’ve been renting or sharing with someone, they’ll only calculate the costs of what they were paying in a shared situation. It’s important to remember the costs of the house will be entirely on you – or with your partner if you’re buying together. So make sure you weigh up the real costs of a whole house – not just the portion you’re used to paying.” Jarrod – UBank Home Loan Specialist.


Pro tip: You can also check out our
expenses 101 guide to help with your calculations.

Size and status of the property

Some banks also take into consideration floor space, as well as whether the place has been lived in or not, which you’ll need to keep in mind when you’re inspecting potential dream pads.

To get a home loan with UBank, the floor space must be more than 50 square metres – this can include balcony size, as well as garage. We also only offer home loans for properties that have already been lived in (for at least six months) – so be aware that if you’re buying off the plan for example, it could affect your eligibility with certain banks.

Got all of that in order? Then what are you waiting for? It’s time to get moving and start your application journey, today!


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.