Master the journey from saving your deposit to owning your first home. Expert guidance for Australian first-time buyers.
Buying your first home in Australia involves more moving parts than most people expect, deposit requirements, government grants, stamp duty exemptions, and loan approval all need to work together. This guide covers every stage of the journey, from saving your deposit to collecting the keys.
First home buyer schemes require: Australian citizenship, first-time home ownership, and property value limits that vary by state, from $500,000 in some regional areas to $1,500,000 in Sydney under the First Home Guarantee. Check your state's revenue office for current eligibility criteria and available grants.
Timeline: 1-2 weeks to verify eligibility
Get pre-approval from a lender to understand your borrowing capacity. Pre-approval shows sellers you're a serious buyer and gives you a clear budget. It typically takes 1-2 weeks and requires proof of income, employment, and credit history.
Benefit: Know your exact budget before house hunting
Save 5-20% of your target property price. For a $500,000 property: 5% = $25,000, 10% = $50,000, 20% = $100,000. Use high-yield savings accounts (5-6% interest), automate transfers, and consider government schemes to accelerate savings.
Timeline: Varies based on income, expenses, and target property price
Research locations based on your lifestyle needs, commute, schools, and long-term liveability. Always get a professional building and pest inspection before making an offer. Never skip inspections, they reveal structural issues, termite damage, and other problems that could cost thousands.
Focus: Lifestyle fit, location, condition
Make an offer based on comparable sales and property condition. Include inspection and finance clauses to protect yourself. Negotiate with the seller if needed. Once offer is accepted, you enter the contract phase (typically 30-60 days to settlement).
Timeline: 1-2 weeks to negotiate and accept offer
Work with your mortgage broker to finalise your loan. Get a formal loan approval, arrange valuation, and complete legal checks. Settlement typically occurs 30-60 days after offer acceptance. On settlement day, funds transfer and you receive the keys to your new home.
Timeline: 30-60 days from offer to settlement
Learn the 10 biggest mistakes first home buyers make and how to avoid them. Save thousands by understanding what NOT to do.
Master proven strategies to save your deposit faster. Learn how to accelerate your savings and reach your home ownership goal.
Understand government grants available in your state. From Queensland's $30,000 grant to stamp duty concessions, we break it all down.
Understand how much you can borrow based on your income, deposit, and credit profile. Get a clear picture of your budget before house hunting.
Government grant available
APRA buffer above your actual rate
Max property price (Sydney FHG)
Minimum deposit required
First home buyers often guess at their borrowing capacity, then get surprised in either direction. Complete your scenario through our secure portal and we'll give you real numbers based on your actual income, expenses, and the schemes you qualify for.
Takes about 15 minutes. No application, no commitment.
"Luke helped me get my first home loan. He was extremely helpful throughout the entire process and was on top of everything. Especially as being a first home buyer this was a confusing process but Luke was always available to answer questions I had and was very open and quick to note any changes to my approval process. Thanks heaps Luke. Will definitely use your services again!"
Jake Graceffo
31 Mar 2026
You need a minimum 5% deposit, but 10-20% is recommended to avoid Lender's Mortgage Insurance (LMI). For a $500,000 property: 5% = $25,000, 10% = $50,000, 20% = $100,000. With less than 20%, you'll pay LMI (typically 2-8% of loan amount). Many first home buyers use government schemes (First Home Owner Grant, First Home Guarantee) to reduce deposit requirements.
Key schemes include: First Home Owner Grant ($10,000-$50,000 depending on state), First Home Guarantee (5% deposit, no LMI, federal scheme from Oct 2025), and Stamp Duty Concessions (reduced or waived stamp duty). Eligibility varies by state. You must be an Australian citizen, first-time buyer, and meet property value limits that vary by state, up to $1,500,000 in Sydney under the First Home Guarantee. Check your state's revenue office for current schemes.
Borrowing capacity depends on your income, expenses, existing debts, and the interest rate buffer lenders apply. Most lenders assess your ability to repay at your actual rate plus 3% (the APRA serviceability buffer). A single income of $60,000 with minimal debts typically supports borrowing of $300,000-$450,000 depending on the lender, but this varies significantly. The most accurate way to know your borrowing capacity is to get pre-approval through a broker who can assess your specific situation across 40+ lenders.
Common mistakes include: buying outside your budget, skipping inspections, not comparing lenders, overpaying for properties, not budgeting for ongoing costs (rates, insurance, maintenance), and buying in poor locations. Avoid these by: getting pre-approval, comparing 40+ lenders, budgeting for all costs, and prioritizing location over price.