The Millennial's Guide to Mortgages

by Carlisle Homes


Planning to buy your first home? Getting that first mortgage can be a daunting task. Here’s our helpful guide to securing your first home loan in 2021

If you’re a millennial and you’re still renting, chances are that owning a home is near the top of your to-do list. Surveys show that nine out of 10 millennials are concerned about being able to afford their own home, and as of 2020, only 30% have made the leap. Read more here

What’s holding them (and you) back? With median house prices at an all-time high, it’s safe to say it’s not the occasional smashed avo on toast. Getting that first mortgage is a daunting task.

However, 2021 might just be your year. Federal and State governments are offering generous grants to first home owners, especially if you’re planning to build your own house. The First Home Loan Deposit Scheme is another helping hand to would-be first home buyers. Learn more about the benefits of a house and land package here


If you’ve been thinking about buying your first home, 2021 might just be your year. Federal and State governments are offering generous grants to first home owners, especially if you’re planning to build your own house. Featured here: Renwick, Kaduna Park Estate, Officer South.

So how do you go about getting a mortgage?

Make yourself attractive to lenders

Before you even set foot in a bank, it’s worth knowing what the lenders will be looking for.

1. Make a budget

The bank is going to want to see strong savings habits and proof that you can live within your means. The days when you could cut back after you got your home loan are long gone. If you’re broke before payday, you need to change your habits now.

This is true even if your parents are going to help out with a lump sum. Banks look at the last six months of bank statements to see that you’ve been saving steadily and sensibly.

2. Pay down your debts

Any debt you have will be counted against you. This includes consumer debt like credit cards, Afterpay and ‘interest-free-period’ loans for white goods and electronics. It also includes debts you might have forgotten about, like your car lease or Invisalign repayments. If you have an outstanding debt to the ATO, you’ll need to pay that off as well.

3. Get a deposit together

You need at least 5% of the purchase price before a bank will consider you. To avoid lenders’ mortgage insurance, banks require you to either have a 20% deposit or a guarantor. Even if you can’t get to that 20% mark, the more you can amass the better.


Consider talking to a broker before you go to the bank. A broker can map out a plan to help you secure a loan by accessing your individual financial situation and goals.

Talk to a broker

All banks have an option to apply for loan pre-approval online, or you can make an appointment with a home loans officer. However, if you go straight to the bank you’ll be limiting your options.

A bank may have a few mortgage products to choose from. Some of them are even marketed to first home buyers. But that’s all they can do. They can’t tell you if another bank has a lower interest rate, or a different set of requirements.

Brokers, on the other hand, have access to many hundreds of products across different lenders. They also know who your best bet might be. If you’re self-employed, or work in the gig economy for example, some lenders are more open to giving you a loan than others. A broker will sit down with you, find out more about your financial situation and goals, and suggest the next step.

If you decide to go forward, they’ll also liaise with the bank for you. They get paid by the bank, on commission, when the loan settles, so they’re as motivated as you are to get it over the line.


Getting a mortgage can be a difficult process – remember, stability is key! Banks will look for consistency and stickability in your lifestyle.

Don’t make any sudden moves

Once you decide you’re serious about getting a mortgage, stability is the key. Banks like to see that you’ve been in the same job for a while with no ambitions to change or move away. Other major life changes, like a new baby, marriage or divorce might also make them wary.

If at all possible, try and postpone any major changes to your lifestyle until after you’ve secured the loan.

And that’s it!

Getting a mortgage isn’t easy. But once you’ve secured your loan and stepped inside your brand new home, nothing feels better.

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Get in touch with Carlisle Homes’ in-house construction finance specialists to find out how far your budget will go. Or find out more about our fixed price house and land package for all home buyers. There are no hidden costs, so you can apply for your mortgage with confidence.


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