First Home Buyer Loans Gracemere

Securing a First Home Buyer Loan Grant for a Young Family

Case Study: First Home Buyers Grant Helps Growing Family Build Their Dream Home in Gracemere, Queensland

For many Australians, buying a first home is one of life’s biggest milestones. When that milestone coincides with preparing to welcome a first child, the financial and emotional pressures can quickly multiply. Careful planning, access to government incentives, and selecting the right lender become essential to achieving the best outcome.

Mortar Finance recently helped first home buyers Stu and Kate navigate this exciting chapter by securing finance for the purchase of land and construction of their new home in Gracemere, Queensland. Through expert lending advice, strategic loan structuring, and a thorough understanding of lender policy, Mortar Finance successfully secured approval for both the land purchase and construction loan while helping the couple access valuable government assistance, including the Queensland First Home Owners Grant and the First Home Guarantee Scheme.

Understanding the Clients’ Goals

Stu and Kate were expecting their first child and wanted to establish a secure family home before their baby arrived. They had identified a block of land in Gracemere where they planned to build a new home under separate land and construction contracts rather than purchasing a traditional house-and-land package.

The total project value was $710,000, with finance of approximately $630,000 required to complete both the land purchase and the construction.

Although the couple had accumulated savings, they were understandably concerned about the significant upfront costs involved in purchasing their first home. They were particularly keen to avoid paying Lenders Mortgage Insurance (LMI), which can add thousands of dollars to borrowing costs when the deposit is less than 20%.

An additional challenge was that Kate was due to commence maternity leave during the loan assessment period. Her changing income profile included paid maternity leave, annual leave, a period of unpaid leave, and eventually returning to work on flexible arrangements. This created complexity around serviceability assessments that required careful lender selection and documentation.

Developing a Tailored First Home Buyer Strategy

Mortar Finance began the process with a detailed first home buyer consultation designed to educate the clients and establish the most suitable lending strategy.

During this consultation, the couple gained a clear understanding of:

• Lending criteria and credit assessment requirements
• Savings history expectations
• Credit score considerations
• Borrowing capacity calculations
• Government grants and eligibility requirements
• Expected upfront costs and purchasing expenses
• The advantages of obtaining finance approval before committing to construction

This education provided Stu and Kate with confidence throughout every stage of the purchasing journey.

Leveraging Government Incentives

One of the key advantages of working with Mortar Finance was identifying every available government incentive to reduce the couple’s financial burden.

The lending strategy incorporated the First Home Guarantee Scheme, allowing Stu and Kate to purchase with only a 5% deposit while avoiding the cost of Lenders Mortgage Insurance.

Mortar Finance also successfully secured the Queensland First Home Owners Grant of $30,000, providing valuable additional funds that reduced overall borrowing requirements and assisted with construction expenses.

Rather than exhausting all of their savings to maximise their deposit, Mortar Finance carefully structured the application so the couple could retain approximately $30,000 in reserve. This created an important financial safety net as they transitioned into parenthood and managed reduced household income during maternity leave.

Selecting the Right Lender

Choosing the appropriate lender proved critical to the success of the application.

Mortar Finance selected NAB because of its flexible parental leave lending policy, which is specifically designed to accommodate borrowers whose income temporarily changes during maternity or parental leave.

To strengthen the application, Mortar Finance obtained detailed employer documentation confirming Kate’s intended return-to-work date and future employment arrangements.

The application also demonstrated that the retained savings would comfortably support the family during the temporary reduction in income, while future childcare arrangements—including a combination of professional childcare and family support—provided confidence that Kate’s planned return to work was realistic and sustainable.

Maximising Borrowing Capacity

Stu and Kate both worked in FIFO roles, creating opportunities to maximise their borrowing capacity through careful income assessment.

Mortar Finance ensured all eligible income components were included within the application, including:

• Regular overtime
• Employment allowances
• Salary sacrifice add-backs where permitted
• Reduced household living expenses due to employer-provided meals while on site

By accurately presenting the couple’s financial position, Mortar Finance was able to strengthen their serviceability without overstating their financial commitments.

Managing the Construction Finance Process

Because the project involved separate land and construction contracts, both approvals needed to be secured within the finance period attached to the land purchase.

Mortar Finance worked closely with the builder throughout the process to ensure construction documentation aligned with lender requirements and settlement timeframes.

Remarkably, the application progressed during one of the busiest periods in the clients’ lives—the birth of their first child.

Despite this significant life event, Mortar Finance coordinated the required documentation, secured the Queensland First Home Owners Grant, reserved the couple’s position under the First Home Guarantee Scheme while construction plans were finalised, and provided the statutory declaration supporting the retained savings required under the scheme guidelines.

The application progressed smoothly with no additional lender conditions requested after submission.

A Successful Outcome for a Growing Family

By combining expert lender selection, detailed policy knowledge, and proactive application management, Mortar Finance delivered an outstanding result for Stu and Kate.

The successful strategy enabled them to:

• Purchase their first home with only a 5% deposit.
• Eliminate the need for costly Lenders Mortgage Insurance.
• Secure the $30,000 Queensland First Home Owners Grant.
• Retain approximately $30,000 in savings for financial security.
• Successfully finance both the land purchase and home construction under separate contracts.
• Navigate maternity leave income changes without delaying approval.
• Receive full finance approval with minimal lender conditions.

For Stu and Kate, this was far more than simply obtaining a home loan. It was about building a secure financial foundation as they welcomed their first child and began the next chapter of family life.

This case study demonstrates how specialist mortgage brokers can combine government incentives, lender policy expertise, and personalised financial strategies to overcome complex lending scenarios. By understanding every aspect of the clients’ circumstances and carefully structuring the application, Mortar Finance delivered a solution that reduced upfront costs, protected the family’s financial wellbeing, and made the dream of home ownership a reality in Gracemere, Queensland.

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