39 - Unlocking the Real Risk of Buying with a 5% Deposit and How to Protect Yourself

39 - Unlocking the Real Risk of Buying with a 5% Deposit and How to Protect Yourself

If you've been reading the news or scrolling through social media this week, you've probably seen some headlines about first home buyers using the 5% deposit scheme and something called negative equity. There is a real risk worth understanding. But for every first home buyer using this scheme, there's a clear strategy that goes with it. In this episode, Jack Elliott and Chris Bates address the headlines and talk through what negative equity actually is, when it really matters, and most importantly, how you protect yourself whether you're still planning to buy or you've already purchased using the scheme. We cover the five key things you can do to protect yourself going in, from knowing your numbers before you borrow to building your emergency fund, choosing quality assets, and getting your income protection sorted. In this episode: 🔑 What the headlines are actually saying about negative equity 🔑 What negative equity really is and when it matters 🔑 How to work out what you can genuinely afford before you borrow 🔑 Why building your emergency fund is critical with a 5% deposit 🔑 The importance of asset quality and protecting your income 🔑 What to do if you've already bought and are feeling anxious If you're planning to buy using the 5% deposit scheme and want to talk through your numbers, book a Get to Know You Chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you]. Timestamps 00:00 - Should We Be Worried About the 5% Deposit Scheme? 01:54 - What Headlines and Bank Economists Are Actually Saying 03:52 - What Is Negative Equity and the Risk? 06:53 - How to Protect Yourself as a First Home Buyer 07:05 - #1 Do the Work on Your Numbers Before You Borrow 10:18 - #2 Build Your Emergency Fund 13:19 - #3 Know Your Goals and Play for the Long Term 15:38 - #4 Do the Work on Asset Quality 17:31 - #5 Get Insurance and Income Protection in Place 20:28 - If You Lose Your Job 21:46 - If You've Already Bought Using the Scheme Budgeting tools * Sort Your Money Out Spending Plan [https://education.moneypodcast.com.au/courses/the-glen-james-spending-plan] * Pivot Wealth Savings Planner [https://sma.pivotwealth.com.au/free-tools/savings-planner] * Moneysmart Budget Planner [https://moneysmart.gov.au/budgeting/budget-planner] Resources * Goals & Visions Workbook [https://static1.squarespace.com/static/67b67c79de168824c01d4cb7/t/685cec6ef5f9e3127218d397/1750920310689/Goals+and+Visions+Guide+V2.pdf] * Asset Quality Checklist [https://static1.squarespace.com/static/67b67c79de168824c01d4cb7/t/6889667349e8dd10afa80429/1753835125019/Asset+Quality+Checklist.pdf] * Download Your How to Protect Yourself When Using the 5% Deposit Scheme Resource [https://firsthomeunlocked.com.au/resources/how-to-protect-yourself-when-using-the-5-deposit-scheme] Mentioned Episodes * Episode 1: Unlocking Your Goals and Vision [https://open.spotify.com/episode/05tx024DxOprIVQIVRnwV3?si=f69f046b8191477f] * Episode 6: Unlocking Asset Quality [https://open.spotify.com/episode/7JZpXQrC7Hx9khuHWWrYMF?si=481ea6405d5644a9] * Episode 23: Unlocking Loan to Value Ratio [https://open.spotify.com/episode/0ySVJFeqQva2031oaajflo?si=9803079a627b477f] * Episode 25: Unlocking Interest Rates and Why They Move [https://open.spotify.com/episode/1bya6ytp3IeFDEqYdAlEp0?si=1f6d708a7fdf4033] * Episode 31: Unlocking Offset Accounts [https://open.spotify.com/episode/5EzBM6uubyToBqxaL3ksDa?si=d02c35a38f7a4b5b] * Episode 37: Unlocking the 2026 Federal Budget [https://open.spotify.com/episode/3B7Fm24xnbYkHXEG5WXN53?si=9982ae2de77a4d5f] Want to keep the conversation going? 👉 Join the First Home Unlocked Facebook Community [https://www.facebook.com/groups/1913683752715056] 📅 Book a chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you?month=2025-05] for tailored support 📱Follow Us on social media: Instagram, [https://www.instagram.com/firsthomeunlocked] TikTok, [https://www.tiktok.com/@firsthomeunlocked] Youtube [https://www.youtube.com/channel/UC6n1qN33Fd128VLi5TW2naQ] firsthomeunlocked.com.au [http://firsthomeunlocked.com.au/]

38 - Unlocking How Banks Assess Self Employed Income

If you're self-employed, banks will usually need more from you before they'll lend compared to a PAYG employee. Understanding what banks are looking for means you can present your income in the best possible way and set yourself up for success. In this episode, Jack Elliott and Chris Bates break down how banks assess self-employed income. We talk through the standard two year approach, why one year financials could significantly increase your borrowing capacity, what your options are if your ABN is less than two years old, and how the director wages pathway could change what you're able to borrow. We also cover the tension between tax minimisation and borrowing capacity, why speaking to a broker before you lodge your tax return matters, and how connecting your broker and accountant early can help you find the right balance between both. In this episode: 🔑 How banks assess self-employed income using two years of financials 🔑 Why one year financials could significantly increase your borrowing capacity 🔑 What your options are if your ABN is less than two years old 🔑 How the director wages pathway could change what you're able to borrow 🔑 Why speaking to a broker before you lodge your tax return is so important Timestamps Timestamps 00:00 - Budget Changes: What We're Seeing for First Home Buyers 01:36 - Introduction to Self Employed Income Assessment 04:09 - The Standard Two Year Approach 04:41 - Balancing Tax Minimisation and Net Profit 07:20 - One Year Financials Policy with Example 09:18 - Protecting Yourself as a Self Employed Buyer 12:07 - Director Wages Policy 14:57 - What If Your ABN Is Less Than Two Years Old? 17:36 - Business Debts and Addbacks 19:41 - Getting the Best Outcomes as a Self Employed Buyer 22:19 - The Tax Return Trap 24:25 - Getting the Right Team Around You Free Resources Download Your How Banks Assess Self Employed Income Resource [https://firsthomeunlocked.com.au/resources/how-banks-assess-self-employed-income] Want to keep the conversation going? 👉 Join the First Home Unlocked Facebook Community [https://www.facebook.com/groups/1913683752715056] 📅 Book a chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you?month=2025-05] for tailored support 📱Follow Us on social media: Instagram, [https://www.instagram.com/firsthomeunlocked] TikTok, [https://www.tiktok.com/@firsthomeunlocked] Youtube [https://www.youtube.com/channel/UC6n1qN33Fd128VLi5TW2naQ] firsthomeunlocked.com.au [http://firsthomeunlocked.com.au/]

37 - Unlocking the 2026 Federal Budget & What it Means for First Home Buyers

The Federal Budget just changed the property market overnight, and the government is calling it a win for first home buyers. If you're a first home buyer, you're probably seeing a lot of headlines and wondering what it actually means for you and your plans. In this episode, Jack Elliott and Chris Bates break down the major budget announcements and what they mean for the property market. We talk through the changes to negative gearing and capital gains tax, how investors are likely to respond, what this means for house prices and competition, and most importantly what it all means for you as a first home buyer. Whether you're actively looking at properties right now, still in the planning stage, or you've recently purchased, this episode covers what you need to know and how to think about moving forward. In this episode: 🔑 The major budget changes to negative gearing and capital gains tax 🔑 How investors are likely to respond and what that means for competition 🔑 Which types of properties and markets will feel these changes the most 🔑 The tools and data you can use to check if an area is investor-heavy 🔑 What first home buyers should be doing right now whether actively looking or still planning Timestamps 00:00 - What the Federal Budget Means for First Home Buyers 04:00 - What Was Actually Announced and Initial Thoughts 08:11 - How Investors Will Respond 11:31 - What It Means for First Home Buyers 14:39 - Tools to Check Investor vs Owner Occupier Markets 19:01 - What Happens to House Prices 22:03 - Should Active Buyers Wait or Keep Going? 24:09 - What Happens to Competition in the Market 26:05 - Asset Quality and Property Selection Right Now 33:10 - What It Means for the Rental Market 38:12 - If You're Planning to Buy in the Future 40:36 - The 5% Deposit Scheme and Help to Buy 43:09 - If You've Already Purchased 43:41 - Interest Rates and What Happens Next Free Resources Open Stats Tool - Property Data [https://openstats.com.au/] Census - Property Data [https://www.abs.gov.au/statistics/people/housing/housing-census/2021] Download Your Federal Budget 20206 Resource [https://firsthomeunlocked.com.au/resources/federal-budget-2026-first-home-buyer] Mentioned Episodes: Episode 6 | Unlocking Asset Quality: How to Choose the Right Property as a First Home Buyer [https://open.spotify.com/episode/7JZpXQrC7Hx9khuHWWrYMF?si=e50157cc4af64d80] Episode 26 | Unlocking the Federal Government ‘Help to Buy’ Shared Equity Scheme [https://open.spotify.com/episode/7uipVg17cm9oW9F5SkYg6k?si=15473044f12c4a3f] Want to keep the conversation going? 👉 Join the First Home Unlocked Facebook Community [https://www.facebook.com/groups/1913683752715056] 📅 Book a chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you?month=2025-05] for tailored support 📱Follow Us on social media: Instagram, [https://www.instagram.com/firsthomeunlocked] TikTok, [https://www.tiktok.com/@firsthomeunlocked] Youtube [https://www.youtube.com/channel/UC6n1qN33Fd128VLi5TW2naQ] firsthomeunlocked.com.au [http://firsthomeunlocked.com.au/]

36 - Unlocking How Banks Assess Casual & Contract Income

Casual and contract workers make up more than a quarter of the Australian workforce. If you're a casual or contract worker, there are absolutely ways to borrow. It just comes down to understanding how banks look at your income and making sure you're with the right lender for your situation. In this episode, Jack Elliott and Chris Bates break down how banks assess casual and contract income. We talk through what lenders are actually looking for, why the same weekly pay can mean very different borrowing capacity at different lenders, and how you can protect yourself financially once you take on a mortgage. We also share a real example where choosing the right lender added $35,000 in borrowing capacity just by using a different annualisation method, showing why lender selection matters so much for casual and contract workers. In this episode: 🔑 How banks assess casual income and what they're looking for 🔑 Why the same weekly pay can mean different borrowing capacity at different lenders 🔑 How banks assess contract income and the difference between dependent and independent contractors 🔑 How to protect yourself financially once you take on a mortgage 🔑 What casual and contract workers should be doing right now to put themselves in the strongest position Timestamps 00:00 - Casual and Contract Income Explained 03:11 - How Banks Assess Casual Income 04:48 - Strengthening Your Position as a Casual Worker 06:53 - Annualisation Differences Between Lenders 07:49 - Protecting Yourself as a Casual Borrower 09:49 - Dependent vs Independent Contractor 10:32 - Contract History, Renewals and Gaps 13:30 - Key Takeaways Unlock your Free Resources Download Your How Banks Assess Casual & Contract Income Resource [https://firsthomeunlocked.com.au/resources/how-banks-assess-casual-and-contract-income] Want to keep the conversation going? 👉 Join the First Home Unlocked Facebook Community [https://www.facebook.com/groups/1913683752715056] 📅 Book a chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you?month=2025-05] for tailored support 📱Follow Us on social media: Instagram, [https://www.instagram.com/firsthomeunlocked] TikTok, [https://www.tiktok.com/@firsthomeunlocked] Youtube [https://www.youtube.com/channel/UC6n1qN33Fd128VLi5TW2naQ] firsthomeunlocked.com.au [http://firsthomeunlocked.com.au/]

35 - Unlocking How Banks Assess PAYG, Overtime, Bonus & Allowance Income

Income is one of the biggest drivers of your borrowing capacity, but banks don't just look at how much you earn. They look at how you earn it and depending on your situation, the same salary can produce very different results at different lenders. In this episode, Jack Elliott and Chris Bates go deeper into how banks assess different types of PAYG income. They break down what happens if you've recently changed jobs or you're still on probation, why overtime and allowances are treated differently depending on your industry, how commission and bonus income gets shaded by lenders, and what banks look for when you're working a second job or planning to go on parental leave. They also share a real example where choosing the right lender policy added $65,000 to a first home buyer's borrowing capacity, showing just how important lender choice can be. In this episode: 🔑 PAYG income and what happens if you've recently changed jobs or you're on probation 🔑 Overtime and allowances and why the lender you choose can make a big difference 🔑 Commission and bonus income and why the bank doesn't take the full amount 🔑 Second job income and what the banks are really looking for 🔑 Parental leave and what you need to have in place to move forward Timestamps 00:00 - PAYG Income - How Banks Assess it 01:50 - PAYG Requirements, Job Changes & Probation 06:50 - Overtime and Allowances 10:39 - Commission and Bonus Income 12:52 - Second Job Income 14:34 - Parental Leave: Can You Still Borrow? 15:51 - Wrap Up and Final Thoughts Unlock your Free Resources Download Your How Banks Assess PAYG, Overtime, Bonus & Allowance Income Resource [https://firsthomeunlocked.com.au/resources/how-banks-assess-payg-overtime-bonus-allowance-income] Want to keep the conversation going? 👉 Join the First Home Unlocked Facebook Community [https://www.facebook.com/groups/1913683752715056] 📅 Book a chat with Jack [https://calendly.com/jackelliott-alcove/get-to-know-you?month=2025-05] for tailored support 📱Follow Us on social media: Instagram, [https://www.instagram.com/firsthomeunlocked] TikTok, [https://www.tiktok.com/@firsthomeunlocked] Youtube [https://www.youtube.com/channel/UC6n1qN33Fd128VLi5TW2naQ] firsthomeunlocked.com.au [http://firsthomeunlocked.com.au/]