Buying Guide

First Home Buyer's Guide

Everything you need to know about buying your first home in Australia

Buying your first home is one of life's biggest milestones. While it can feel overwhelming, understanding the process and being well-prepared can make your journey to homeownership much smoother. This comprehensive guide covers everything Australian first home buyers need to know.

First Home Buyer Eligibility

To be considered a first home buyer in Australia, you generally must:

  • Be an Australian citizen or permanent resident
  • Be at least 18 years old
  • Not have previously owned property in Australia
  • Intend to live in the property as your primary residence

Some states have additional requirements, so check with your state government for specific criteria.

Government Grants & Schemes

Australian governments offer several incentives to help first home buyers:

First Home Owner Grant (FHOG)

A one-time grant ranging from $10,000 to $20,000 depending on your state and whether you're buying new or established property. New builds typically attract higher grants.

First Home Loan Deposit Scheme (FHLDS)

Allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). Places are limited and allocated quarterly.

Stamp Duty Concessions

Most states offer stamp duty discounts or exemptions for first home buyers up to certain property values. This can save you thousands of dollars.

First Home Super Saver Scheme (FHSSS)

Save for your deposit through your superannuation with potential tax benefits. You can contribute up to $15,000 per year and withdraw up to $50,000 for your first home.

Saving for Your Deposit

The deposit is often the biggest hurdle for first home buyers. Here's what you need to know:

How Much Do You Need?

  • 5% deposit: Minimum with FHLDS or guarantor
  • 10% deposit: Typical minimum, but you'll pay LMI
  • 20% deposit: Ideal target to avoid LMI

Deposit Saving Strategies

  • Set up automatic transfers to a high-interest savings account
  • Use the First Home Super Saver Scheme
  • Consider a side hustle to boost income
  • Cut discretionary spending and redirect to savings
  • Move back with parents temporarily if possible

Getting Pre-Approval

Pre-approval gives you confidence when house hunting by showing how much you can borrow. The process involves:

  1. Gathering financial documents (payslips, bank statements, ID)
  2. Completing a loan application
  3. Credit check by the lender
  4. Conditional approval valid for 3-6 months

Important Note:

Pre-approval is not a guarantee. Final approval depends on the property valuation and your financial situation at the time of purchase.

Finding the Right Home

Start your property search with a clear strategy:

Define Your Criteria

  • Location priorities (commute, schools, amenities)
  • Property type (house, townhouse, apartment)
  • Number of bedrooms and bathrooms
  • Must-haves vs nice-to-haves
  • Maximum price based on pre-approval

Research Tools

  • Real estate websites (Domain, REA)
  • Suburb profiles and recent sales data
  • Property reports and building inspections
  • Local council planning information

The Application Process

Once you've found your dream home and had your offer accepted:

  1. Formal loan application: Submit with your chosen lender
  2. Property valuation: Lender arranges independent valuation
  3. Loan documents: Review and sign loan contracts
  4. Insurance: Arrange building and contents insurance
  5. Final approval: Lender confirms unconditional approval

Settlement Day

Settlement is when ownership officially transfers. On this day:

  • Your lender transfers the loan funds
  • You pay the deposit balance and settlement costs
  • Property title transfers to your name
  • You receive the keys to your new home!

Top Tips for First Home Buyers

1. Budget for Hidden Costs

Beyond the purchase price, budget for stamp duty, legal fees, building inspections, moving costs, and initial repairs or furniture.

2. Don't Max Out Your Borrowing

Just because you're approved for a certain amount doesn't mean you should borrow it all. Leave room for rate rises and life changes.

3. Get Professional Help

A good mortgage broker can find better rates and guide you through the process. Also engage a solicitor or conveyancer early.

4. Be Patient but Ready

Finding the right property takes time, but when you find it, be ready to act quickly with your finances in order.

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