Jigar ModiHome / Questions
Questions and answers
First home buyer questions, answered
Plain-English answers to the questions first home buyers in Australia ask me most, from over 15 years in lending. New answers are added regularly.
Answered from experience
Longer answers, with the stories behind them.
- How much should I spend on my first home?Usually less than the bank will lend you. A pre-approval tells you the most a lender is willing to lend. It can't tell you what your life can carry after settlement. Work that out first, then look at homes.
- Should my first home be my dream home?No, and it doesn't need to be. Your first home's job is to get you started. A modest home you can afford comfortably is usually a stronger start than a stretch for the home you'll want in fifteen years.
- Is paying LMI ever worth it?Sometimes, yes. LMI is a real cost and it protects the lender, not you. But saving for years to avoid it has costs too, and the rules may have changed since someone gave you that advice. The question is which cost is bigger for you.
- How long does it take to buy a first home after moving to Australia?There's no standard timeline. It depends on your residency, your job history, your savings and your debts. It took me seven years from landing as a student. I'd like it to take you a lot less, and knowing what you're working towards is most of the difference.
- How do I know if I'm ready to buy my first home?You're ready when you can answer a few questions clearly. What can you comfortably spend? Which home fits the next ten years? What will it cost on top of the price? And what will you do if something goes wrong on the day? Your savings balance is only one part of it.
- Should I bid over my limit at auction if family offers to cover it?Be very careful. Going over your limit can change more than the price. It can affect whether a government scheme still applies, whether you pay LMI and whether a lender will still support the loan. Property bought at auction usually has no cooling-off period, so you're committed when the hammer falls.
- Should I trust property advice from my family WhatsApp group?Listen, but don't decide from it. Group chats are good at sharing wins and bad at sharing costs. Nobody posts the LMI bill, the valuation that came in short or the month they couldn't sleep. Use the group for questions, and make the decision on your own numbers.
- What do first home buyers miss that costs them later?Usually something they didn't know to ask about. Smart, careful people get caught by blind spots, not by being careless. You can't ask about something you don't know exists. The most useful preparation is finding the right questions before you need the answers.
- Should we buy a new car or our first home first?Decide which dream you want first. A car loan can reduce what a lender will let you borrow for a home, and the repayment sits in your budget for years. There's no wrong answer, but there is an order, and it's worth choosing it on purpose.
- How should I plan my first home if my parents will come to stay?Plan for them from the start. Many migrant families plan for two generations, not one. A pre-approval doesn't know your parents are coming for three months. Your choice of home, your budget and your buffer should.
About Before You Sign and the workshop
What is Before You Sign?
My short weekly email for first home buyers. Each issue is one useful read: a money term in plain English, a mistake to avoid or a reader's question answered. It launches in early 2027, and the waitlist is open now.
Is there a charge for Before You Sign or the workshop?
No. Both have no charge.
When is the next First Home Workshop?
Wednesday 18 November at 7pm AEDT, online. It runs for about an hour and you can ask questions live. Save your spot.
About working with me
Who is Jigar Modi?
I came to Australia in 2000 as a student. I've worked inside two major banks and spent over 10 years in mortgage broking. That's over 15 years in lending, and more than $450M in settled lending. Read my story.
What is First Home Ready?
My group programme for first home buyers. It's a structured course through the blind spots that cost buyers money, with me as your sounding board. Founding members start one on one with me now, and group sessions begin in early 2027. Book a chat and we'll see if it's a fit.
Can you help with my home loan?
Yes. When you're ready to apply, my mortgage team at Loancart, the broking business I co-founded, can help through to settlement. Book a chat to start.
Will you tell me which home to buy?
No. That's your call. I help you get clear on your budget, your priorities and the questions to ask, so you can make the decision with confidence.
Do you help buyers across Australia?
Yes. The weekly email, the workshop and chats all run online, so you can join from wherever you are in Australia. My office is in Scoresby, Victoria, and meetings there are by appointment.
First home basics
What is LMI?
Lenders mortgage insurance. It's usually charged when you borrow more than 80% of a property's value, and it protects the lender, not you. More in the glossary.
What is the difference between pre-approval and approval?
A pre-approval says a lender is willing to lend up to an amount, based on what you've told them. It isn't a promise. Full approval comes later, once the lender has assessed the actual property. More in the glossary.
Is there a cooling-off period if I buy at auction?
Usually not. Property bought at auction generally has no cooling-off period, so you're committed when the hammer falls. Rules vary by state, so check what applies where you're buying. More in the glossary.
What costs are there on top of the price?
Stamp duty (unless a concession applies), legal or conveyancing fees, building and pest inspections, loan costs, insurance and moving. The first home buyer guide walks through them.
Want to go deeper?
The first home buyer guide walks through the whole process in ten steps, and the glossary explains the terms.
Get one of these every week
Before You Sign is my weekly email for first home buyers. Plain English, from over 15 years in lending. Launching early 2027.
Join the waitlistGot a question you'd like answered? Email jigar@jigarmodi.com.au. I read every one, and the best ones become pages like this.
This is general information, not personal advice. Rules change, so check what applies to you now.