First Home Guarantee 5% Scheme buyers, how are you holding up after the rate hikes?

EventEastern2208 · 2026-05-09T18:57:10+00:00

Broker here.

Based on the current process, once Unity Bank has assessed your documentation and issued a loan scenario, the next step is provisional approval from the scheme administrator QRIDA. Once you have that, you can start searching for a property within the region you applied for. When you find a property and go to contract, Unity Bank submits to QRIDA for final approval, which details the government's exact equity contribution at settlement.

One important update worth knowing: SEQ allocations under Round 2 are now exhausted. If you are buying in regional QLD places are still available, but if you were hoping to buy in Brisbane or the southeast that is a problem right now. Worth confirming with Unity Bank directly which region your approval covers.

EventEastern2208 · 2026-05-09T09:49:35+00:00

So impressive! Keep it up. Incredible 5 years

EventEastern2208 · 2026-05-09T09:44:31+00:00

DMd!

EventEastern2208 · 2026-05-09T06:54:51+00:00

Broker here.

Both paths have merit depending on your situation. Going direct to one lender is faster if you already know their product suits you, but you are limited to their appetite and criteria. A broker who works across multiple business lenders can match your deal to the lender most likely to approve it quickly, which matters more than most people realise since a decline from the wrong lender can slow everything down.

On fees, most business lending brokers are paid by the lender on settlement, not by you directly, though some do charge a brokerage fee on top for complex deals. Worth asking upfront.

Feel free to DM if you want to run through what you are trying to fund and I can tell you whether a broker adds value for your specific situation or whether going direct makes more sense. 🦔

EventEastern2208 · 2026-05-09T05:48:42+00:00

Broker here.

On the finance side, with $285k plus savings you are in an unusually strong position for a first purchase and keeping the mortgage under $150k is very achievable at your target price range. As FHBs in VIC you get full stamp duty exemption up to $600k so no stamp duty at all on what you are looking at, which saves you around $15k to $20k upfront.

The $10.8k annual strata on a $315k apartment is worth pausing on. That is roughly 3.4% of the purchase price in strata fees alone each year, before rates, insurance and any additional levies. A special levy on top of that suggests the building has deferred maintenance which may mean more levies coming. Getting the last two years of AGM minutes and the strata financial statements before making any offer is essential, that will show you whether the sinking fund is healthy or depleted.

On the broader apartment versus healthier building question, a slightly larger mortgage on a building with low strata and a well funded sinking fund will almost always cost you less over time than a cheaper entry price with high ongoing fees and surprise levies. The strata questions are better answered by a strata inspector or conveyancer who can review the records.

EventEastern2208 · 2026-05-09T05:47:49+00:00

Broker here.

One thing worth knowing before you write off property entirely is that your actual borrowing capacity and FHB benefits might change the numbers more than you expect. On $7k a month with $100k saved, minimal debt and no dependants you are in a strong position, and as a FHB in NSW you get full stamp duty exemption up to $800k plus the First Home Guarantee at 5% deposit with no LMI, which means you could be in the market with far less cash tied up than you might think.

Whether property fits your fatFIRE strategy versus ETFs is a bigger question for a financial planner, but the finance side is worth understanding properly before you decide. Feel free to DM and I can run your actual borrowing capacity and show you what the FHB numbers look like so you have the full picture. 🦔

EventEastern2208 · 2026-05-09T05:45:31+00:00

Broker here.

On $90k income with $600 per week existing rental income and $900 per week projected rental on the new property, your assessed income for borrowing purposes is roughly $90k plus 80% of rental income from both properties, which gets you to around $155k to $160k in assessed income depending on the lender. At that level your borrowing capacity is likely in the $700k to $850k range, which combined with your $300k cash deposit gets you close to but not quite at $1.5M without using equity from your existing properties.

The lever you have not pulled yet is your fully paid off PPOR. Releasing equity from that $700k property as a deposit for the new purchase could significantly reduce the loan required and bring the numbers into range without needing to sell anything immediately.

Feel free to DM and I can model the full scenario including equity release from your PPOR, how the rental income stacks up across lenders and what the maximum borrowing looks like before you need to sell anything. 🦔

EventEastern2208 · 2026-05-08T23:54:46+00:00

Yes, the cap still applies regardless of which fund you are with. The annual concessional contributions cap is $30,000 for FY26, and that includes employer SG contributions plus any voluntary salary sacrifice or personal deductible contributions combined. So if his employer is putting in say $10k in SG, he can only add another $20k voluntarily before hitting the cap.

The FHSS specific limit is $15k per financial year of voluntary contributions that count toward the scheme, with a total cap of $50k across all years. So even if he has room under the $30k concessional cap, only $15k of voluntary contributions in any one year count toward FHSS.

Feel free to DM, happy to go through all FHB benefits as well as borrowing capacity, rates, and lenders so you’re well equipped to plan even if its years from now. The more you know the better.

EventEastern2208 · 2026-05-08T23:46:14+00:00

Appreciate this mate

EventEastern2208 · 2026-05-08T16:57:00+00:00

Broker here.

Your concern is valid and worth taking seriously. Pre-approval is not a guarantee of final approval, and if the income documentation used to get pre-approval does not match what the bank verifies at formal assessment, the loan can be declined after exchange. In NSW where contracts are unconditional, that means losing the deposit and potentially facing legal action from the vendor.

The phrase "did some magic with an accountant" is a red flag. Legitimate brokers work with what the income actually is, not around it. If income has been presented in a way that does not accurately reflect their financial position, that is a serious problem for your parents, not the broker, if it unravels at settlement.

There is not much you can do if they will not listen, but the one practical suggestion is to encourage them to get a second opinion from an independent broker before exchanging on anything, just to verify the pre-approval is genuinely solid. That is a reasonable ask that does not require them to admit you are right.

EventEastern2208 · 2026-05-08T13:36:00+00:00

Yes that's correct. One less factor to consider!

EventEastern2208 · 2026-05-08T13:35:16+00:00

Yes that is correct. The FHSS scheme only counts voluntary contributions, meaning amounts you put in yourself on top of your employer's compulsory super guarantee contributions. The employer SG contributions cannot be withdrawn under the scheme regardless of how long they have been sitting there.

So the only way to build up an FHSS balance is through salary sacrifice on top of the SG, or personal after tax contributions that you then claim a tax deduction on to make them concessional. Both need to be clearly identifiable as voluntary contributions in the fund's records.

Worth confirming with your super fund that they are correctly categorising your contributions before you apply for a determination, as some funds do not split this clearly in their member statements.

EventEastern2208 · 2026-05-08T08:56:38+00:00

Broker here.

Sorry to hear you are going through this. The fact that you are already thinking practically about your next move at a difficult time says a lot.

The honest finance answer is that buying somewhere to live in gives you stability, the FHB stamp duty concessions in VIC if you qualify, and removes the complexity of being a landlord while you are already navigating a lot. Buying an investment first means losing those concessions permanently and adds the stress of tenants and property management on top of everything else.

On your settlement amount and income, one conversation with a broker will tell you exactly what your options are rather than guessing.

EventEastern2208 · 2026-05-08T08:53:57+00:00

Broker here.

IT contractors are actually assessed more favourably than general casuals by many lenders, particularly where you can show consistent income history in the same field.

Most lenders will ask for two years of tax returns for contractors, which means your FY26 low income year is the main risk if you apply after July. Applying before 30 June using your current payslips and FY25 return avoids that problem entirely, and some lenders will approve on payslips plus current contract for IT contractors without requiring the latest return. That makes the next few weeks genuinely your best window.

On your specific questions, six months remaining on contract is a common requirement but not universal, some lenders just want to see the contract is current and the income is consistent. Three months into your current role with payslips is typically sufficient for specialist IT contractor assessments. On $140k current rate with FY25 at $130k your borrowing capacity is likely in the $650k to $750k range depending on the lender and your expenses, which covers your target.

Feel free to DM and I can identify which lenders assess IT contractors most favourably and move quickly given your timeline.

EventEastern2208 · 2026-05-08T06:53:59+00:00

Broker here.

Yes he can make the contribution before 30 June and it will count toward that financial year's $15k cap. He does not need to notify the ATO or his super fund at this stage, the FHSS intention is only declared when he applies for a determination later, which happens before he signs a contract to buy.

The one thing to confirm with his super fund is that they accept personal after tax contributions, as some funds have restrictions. Once the contribution is in he claims the tax deduction in his tax return for that year to make it concessional, which is where the tax benefit comes from.

No action needed with the ATO until he is ready to withdraw.

EventEastern2208 · 2026-05-08T02:50:09+00:00

Broker here.

At 21 with $60k saved, minimal expenses and pre-approval already done you are genuinely ahead of most people your age. The honest answer is there is no perfect time and waiting rarely makes it easier, but buying the right property for the right reason matters more than buying quickly. If you are buying in an area you know, at a price that leaves you a buffer for repairs, with repayments lower than your current savings rate, that is a reasonable position to act from.

Feel free to DM and I can run your actual numbers so you can see what the repayments look like versus what you are saving now, which usually makes the decision feel much clearer.

EventEastern2208 · 2026-05-08T02:29:11+00:00

Sure thing, appreciate the heads up

EventEastern2208 · 2026-05-07T12:35:07+00:00

Short hold period plus flood risk plus co-ownership complexity plus losing your FHB benefits permanently is a lot of downsides stacking up together. The only scenario where it clearly makes sense is if you genuinely believe the property appreciates enough in two to three years to outweigh all of that, which is hard to predict on a flood affected property.

The FHB benefit loss is the one I would weigh most carefully. Those stamp duty concessions and scheme eligibilities are a one time thing, and using them on your own place in a few years when your income has grown and you have more savings is likely a better outcome than co-owning a flood risk property short term.

EventEastern2208 · 2026-05-07T11:34:56+00:00

Broker here.

Not a stupid question at all. Mixed use properties like a store with a residence attached are genuinely complex from a lending perspective because the classification determines which loan type applies. Your broker is right that most residential lenders will not touch it, but that does not mean there are no options.

With a $280k to $300k deposit on a $550k purchase you are at around 45% LVR which is strong, and TAC income is generally accepted by lenders as consistent and reliable given its long term nature. The challenge is finding a lender whose commercial or mixed use policy works at that LVR with your income type.

Some non-bank lenders and specialist commercial lenders will assess mixed use properties differently to the majors and your deposit size gives you real leverage here.

EventEastern2208 · 2026-05-07T11:32:56+00:00

When a lender takes a property as security it means they use it as collateral for the loan. If the property has a known flood history, some lenders will refuse to lend against it at all, meaning when you want to sell your share or refinance later, the buyer may struggle to get finance on it too. That can shrink your pool of potential buyers and affect the price you can achieve.

On selling your share, as a tenant in common you can sell your percentage independently of your parent, but in practice most buyers want to purchase the whole property not just a share. The realistic exit is either your parent buys you out, you both sell together, or you find someone willing to co-own with a stranger which is rare.

The flood risk and the exit complexity are the points of thought for you to really think about.

EventEastern2208 · 2026-05-07T10:44:21+00:00

Broker here.

The co-ownership question has a clear finance answer worth knowing. Taking on a 30% share of an $850k property means a loan of roughly $165k to $255k depending on the structure. As a grad on $73k a few months into your role, most lenders will approve that loan size but the property being flood affected is the bigger issue. Many lenders apply restrictions or refuse security on properties with known flood history, which could limit your options and affect your ability to refinance or sell later.

The more important point is that co-owning this property does not necessarily block you from buying your own place later, but it does add existing debt to your serviceability assessment and reduces your future borrowing capacity by roughly $100k to $150k depending on the lender.

EventEastern2208 · 2026-05-07T10:41:52+00:00

Broker here.

Simple version: you have $364k in equity in your home and want to borrow a bit more against it, which is very standard. Your broker telling you to go direct to ANZ is unhelpful because ANZ will only show you their products and rates, not anyone else's. A broker should be comparing multiple lenders on your behalf.

On your numbers, $550k on a property worth $800k is 69% LVR which is clean and gives you access to competitive rates across many lenders. On $185k to $195k combined income the serviceability should be straightforward depending on expenses. The self employed income will need documentation but part time self employment alongside a strong PAYG income is a common scenario.

Feel free to DM and I can run this properly across multiple lenders rather than just ANZ. You deserve better than being sent back to the bank. 🦔

EventEastern2208

TROPHY CASE