In May 2024, Darwin has some of the cheapest city homes in the country, here is how the numbers add up for a First Home Buyer.

We need to have a quick look at some of the terms:

• Address: I have picked the cheapest home in a Palmerston suburb, if you have a house or flat in mind send me the address and I will do the model.
• Price: That’s the asking price, you may get it for less, no harm in asking!
• Stamp Duty: Governments earn a lot of income through this tax.
• Buying Costs: There are property inspections, a conveyancer works on your behalf, minor legal costs and fees so we round up.

Add Price, Stamp Duty and Buying Costs together and we have our Base Cost.

The bank will lend anywhere up to 97% of the value of the property.

If you have the funds, the 80% model is great. In this instance Cash Required is $83k.

If you don’t have that amount, we can use Lenders Mortgage Insurance (LMI) which can be included in the loan and bring it to 95%. So now Cash Required is $43k.

This can be brought down again by using the Family Home Guarantee. If you are eligible the federal government will cover the LMI cost, in this case Cash Required is $33k. Check here for more information: https://www.nab.com.au/personal/home-loans/first-home-guarantee

So, what are the repayments:

Say you had the loan of $312,000 @ 5.79% that would be repayments of $1,828 p/m or said another way $421 p/w. This may make buying cheaper than renting for many people in Darwin.

For indigenous Territorians there is the Indigenous Business Australia home loan scheme which is unique in its rates and deposit requirements. There are wait times in this process, have a look here for more details:

https://iba.gov.au/home-ownership/about-iba-home-loans/applying-for-an-iba-home-loan/

Please do not hesitate to contact me for a no obligation chat.