Free Mortgage Assessment. Contact Today!!!
Free Mortgage Assessment. Contact Today!!!
Everything you need to buy your first home with confidence. Learn how much deposit you’ll need, which government grants and stamp duty concessions you may qualify for, how home loans work, and the complete step-by-step process from pre-approval to settlement, all explained by your independent Australian mortgage broker.
How lenders assess income, expenses and credit history
How much you actually need, and where it can come from
How much you actually need, and where it can come from
Stamp duty & FHOG in every state and territory
Which unlocks more grants, and what to weigh up
Conveyancing, inspections, guarantor loans and more
Fixed vs. variable, LMI, offset, comparison rate
Pre-approval through to settlement, step by step
What trips up first home buyers most often
PAYG, self-employed, casual and contract income
Fast answers to the questions we hear most
As a first home buyer, it’s completely normal to wonder where to start. Between saving a deposit, understanding government grants, comparing home loans, navigating stamp duty concessions and working out whether you’re eligible for the Australian Government 5% Deposit Scheme, there’s a lot to take in.
That’s why we’ve created this guide. We’ve broken the entire first home-buying journey down into 10 simple, easy-to-follow steps, covering every state and territory in Australia. Whether you’re just starting to save your deposit or you’re ready to apply for pre-approval, you’ll find practical advice to help you make informed decisions at every stage.
With access to a panel of more than 40 lenders, Nice Loans isn’t tied to any one bank. We compare home loans from across our lending panel, explain your options in plain English, and help you compare the right loan options, government grants and concessions for your individual circumstances.
Min deposit under the Australian Government 5% Deposit Scheme
Min deposit under the Australian Government 5% Deposit Scheme
Max First Home Super Saver release
Max govt equity share, Help to Buy
Before you start browsing real estate listings or attending open homes, it’s important to understand your borrowing power. Your borrowing capacity is determined by more than your salary. Every lender has their own lending and assessment policies, which means your borrowing limit can vary significantly from one bank to another.
Whether you’re a PAYG employee, self-employed, a contractor, or working casually or part-time, lenders assess each income type differently. Some lenders are far more flexible than others, particularly for self-employed borrowers, contractors and those with multiple income sources.
Lenders also scrutinise your day-to-day spending and existing financial commitments. This includes personal loans, car finance, credit card limits, Buy Now, Pay Later accounts and your general living expenses. Even unused credit card limits can reduce your borrowing capacity, as lenders treat them as available debt.
Your credit history is another important part of your home loan application. Lenders review your credit score, repayment history, existing debts, and recent applications for finance to assess your overall risk. A strong credit profile can improve both your borrowing capacity and the interest rate you’re offered.
Knowing your realistic budget from the outset helps you focus on properties you can genuinely afford and prevents the disappointment of falling in love with a home that’s outside your price range.
One of the biggest myths about buying your first home is that you need a 20% deposit. While a 20% deposit allows you to avoid Lenders Mortgage Insurance (LMI) altogether, it’s not the only path to home ownership. In reality, many first home buyers purchase with a deposit of between 5% and 15%, using a combination of genuine savings, gifted funds and government schemes such as the Australian Government 5% Deposit Scheme. The right deposit for you will depend on your financial situation, the property you’re buying and the home loan options available through your lender.
Most lenders like to see that you’ve built your deposit over time, rather than receiving it all at once. This is known as genuine savings. Typically, you’ll need to show that at least 5% of the property’s purchase price has been saved gradually over a minimum of three months in your own account.
If a parent or immediate family member is helping you buy your first home, a gifted deposit is accepted by most lenders. In most cases, the person providing the funds will simply need to sign a declaration confirming the money is a genuine gift and doesn’t need to be repaid.
The First Home Super Saver Scheme (FHSSS) allows eligible first home buyers to save part of their deposit through their superannuation. By making voluntary contributions to your super, you can take advantage of the concessional tax rate before applying to release those funds for the first time.
Rule of thumb: If you can save around 5% of your purchase price, you may already be in a position to buy your first home. Combined with the Australian Government 5% Deposit Scheme, which allows eligible buyers to avoid LMI, and state-based stamp duty concessions available in many parts of Australia, a 5% to 10% deposit is often enough to get started.
The Australian Government offers several schemes designed to make buying your first home more affordable. Depending on your circumstances, you may be eligible for one or more of these programs alongside your state’s First Home Owner Grant (FHOG) and stamp duty concessions. Choosing the right scheme can save you thousands of dollars in upfront costs, reduce the deposit you need, or even lower your ongoing mortgage repayments.
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase a home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI). Instead of requiring a 20% deposit, the Australian Government guarantees up to 15% of the property’s value for eligible buyers using the General Stream, giving participating lenders the confidence to waive LMI.
The Help to Buy scheme allows the Australian Government to contribute up to 40% of the purchase price for a new home and 30% for an existing home, in exchange for an equivalent equity share. From the 1st of July 2026, income limits are $103,000 for single applicants and $165,000 for couples and single parents. The program offers 10,000 places for the 2026-27 financial year through participating lenders.
The First Home Super Saver Scheme (FHSSS) allows eligible buyers to make voluntary superannuation contributions at concessional tax rates before withdrawing those funds to help purchase their first home. You can currently release up to $15,000 of eligible voluntary contributions per financial year, up to $50,000 per person over your lifetime, and up to $100,000 for couples buying together.
The Single Parent Stream allows eligible single parents & legal guardians to purchase with a minimum 2% deposit without paying LMI. The property must be at or below the applicable location price cap.
Important: The Australian Government 5% Deposit Scheme isn’t a cash grant. Instead, the Australian Government guarantees part of your loan, allowing eligible buyers to avoid paying LMI. The Help to Buy scheme works differently by providing an equity contribution in your home. Both programs are accessed through participating lenders rather than by applying directly to Housing Australia.
2026 Federal Budget: The 2026 Federal Budget includes several housing measures aimed at improving affordability for first-home buyers. These include a proposed restriction of negative gearing to newly built investment properties, designed to encourage housing supply while reducing investor competition for established homes over time. Existing investments would be grandfathered under the current rules. The budget also announced a $250 working Australians Tax Offset from the 2027-28 financial year and proposed $1,000 instant deduction for work-related expenses from 2026-27. While these initiatives may slightly improve household cash flow, your borrowing capacity will still be driven primarily by your income, expenses, deposit and lender assessment criteria. Having a clear deposit strategy and obtaining a home loan pre-approval remain the most important steps before entering the property market.
While the Australian Government offers nationwide support for first home buyers, every state and territory has its own First Home Owner Grant (FHOG) and stamp duty (transfer duty) concessions. The eligibility criteria, property price caps, and benefits can vary significantly depending on where you’re buying. Here’s the state-by-state picture as of July 2026.
FHOG (new homes)
$30,000
FHOG value limit
Less than $750,000
Stamp duty – new homes
$0, no cap
Duty exemption – established
Up to $700k
Concessional duty
Over $700k & under $800k
$30k grant extended in the 2026–27 QLD Budget.
FHOG (new homes)
$10,000
FHOG value limit
$0 to $800k
Over $800k & under $1M
$600,000 limit for purchasing a new or substantially renovated home; $750,000 combined land and building-cost limit when building.
FHOG (new homes)
$10,000
Stamp duty exemption
$0 to $600k
Concessional to
$750,000
The $10,000 FHOG applies only to eligible new homes valued up to $750,000. The duty exemption concession can apply to new homes, established homes & vacant residential land. Eligibility & occupancy requirements apply.
FHOG (new homes)
$10,000
FHOG price cap
$800,000
Stamp duty exemption
Up to $600k
Concessional to
Over $600k to $800k
FHOG cap increased from $750k to $800k from 7 May 2026 for homes south of the 26th parallel. The cap remains $1 million north of the 26th parallel.
FHOG (new homes)
Up to $15,000
FHOG price cap
No value cap*
Stamp duty – new homes
Full relief; no value cap*
Stamp duty – established
Not available
For eligible transactions commencing or contracts entered into on or after 6 June 2024. Eligibility requirements apply.
FHOG (new homes)
$20,000
FHOG price cap
Established-home duty relief
Ended 30 Jun 2026
$20,000 applies to eligible transactions commencing from 1 July 2026 to 30 June 2027.
FHOG
Home Buyer Concession
Eligibility
No income test*
Property value cap
No value cap*
From 1 July 2026. Other eligibility and residence requirements continue to apply.
HomeGrown Territory grant
Up to $50,000
Eligible property
New homes
None
Grant price cap
No price cap
Available to eligible first-home buyers buying or building a new home. Contract dates and other eligibility requirements apply.
The figures above are current as of July 2026; make sure to confirm the latest eligibility, property caps and concession thresholds. As part of our free assessment, we can help you check every grant and concession available while also lodging relevant applications.
One of the biggest decisions you’ll make as a first home buyer is whether to purchase an established home or build a new one. Beyond lifestyle and location, this choice can significantly impact the grants, stamp duty concessions, and government incentives you’re eligible for.
Typically offers a faster and more predictable path to homeownership. Not only can you move in sooner, but you can also inspect the property before purchasing.
While established homes typically don’t qualify for the state First Home Owner Grant, you may still be eligible for federal initiatives such as the Australian Government 5% Deposit Scheme, Help to Buy and state-based stamp duty concessions where available.
State & territory First Home Owner Grants generally apply to eligible new homes rather than established properties, although grant amounts & eligibility requirements vary.
If you’re building, your home loan is usually structured as a construction loan, with funds released to your builder in stages as construction progresses.
Not sure which option offers better value? We can compare the total cost of buying established homes vs building new, including grants, stamp duty savings, construction costs, and borrowing requirements so you can make an informed decision based on your budget and long-term goals.
Your deposit is only one part of the upfront cost of buying a home. It’s also important to budget for legal fees, inspections, moving expenses and other costs that arise before settlement. Beyond that, if saving a 20% deposit feels unrealistic, many Australians purchase their first home with a much smaller deposit with low-deposit alternatives.
A solicitor or licensed conveyancer manages the legal transfer of the property into your name, reviews the contract of sale and coordinates settlement. Costs typically range from $1,000 to $2,000, depending on your state and the complexity of the transaction.
If you’re buying an established home, a building and pest inspection is one of the best investments you can make. Expect to pay around $400 to $800 for a combined inspection.
Removalists, utility connections, insurance and essential furniture can quickly add to your upfront expenses. As a general guide, it’s worth setting aside an additional 3% to 5% of the property’s purchase price to comfortably cover these costs.
A guarantor loan allows an eligible family member to use the equity in their own property as additional security for your home loan. This can allow you to borrow up to 100% of the purchase price, and in some cases even cover purchasing costs, while avoiding Lenders Mortgage Insurance (LMI).
If you aren’t eligible for the Australian Government 5% Deposit Scheme, paying LMI may allow you to purchase with a smaller deposit. However, LMI increases the cost of your loan & protects the lender, not you. Whether purchasing sooner is appropriate will depend on the LMI cost, your financial circumstances, borrowing capacity & the risks of waiting. Property prices may rise or fall.
Home loan terminology can feel like its own language. Here’s what actually matters for a first home buyer:
A fixed-rate home loan locks in your interest rate for a set period, usually one to five years, giving you predictable repayments and protection from interest rate rises. A variable-rate home loan moves with market interest rates, so your repayments may increase or decrease over time. Many choose to split their loan between fixed and variable to balance certainty with flexibility.
Lenders Mortgage Insurance (LMI) is usually payable when you borrow more than 80% of a property’s value. Since it protects the lender rather than the borrower, it can add thousands of dollars to the cost of buying a home. Depending on your deposit and eligibility, LMI may be avoided through the Australian Government 5% Deposit Scheme or by using a guarantor loan.
An offset account is a transaction account linked to your home loan. Every dollar held in the account offsets your loan balance, reducing the interest charged while keeping your money fully accessible. On the other hand, a redraw facility allows you to withdraw any additional repayments you’ve already made on your loan.
The advertised interest rate doesn’t always tell the full story. A comparison rate includes the interest rate plus most fees and charges, giving you a better indication of the overall cost of a home loan. When comparing lenders, it’s important to consider both figures rather than focusing solely on the lowest advertised rate.
Your loan-to-value ratio (LVR) is the percentage of the property’s value that you’re borrowing. For example, borrowing $570,000 to purchase a $600,000 home means your LVR is 95%. Generally, the lower your LVR, the lower your lender’s risk. This can improve your chances of approval, reduce or eliminate LMI, and in some cases help you access more competitive interest rates.
Principal and Interest (P&I) repayments reduce both your loan balance and the interest charged over time. This is the most common loan structure for owner-occupiers and first-home buyers, as it builds equity from the very first day. With Interest-Only Loans, repayments only cover the interest for an agreed period, so the loan balance doesn’t decrease.
Buying your first home is much less daunting when you know what to expect. From your initial assessment through to settlement day, we’ll guide you through every stage of the home loan process and keep everything moving smoothly.
We begin by reviewing your income, expenses, savings, employment and credit history to determine your borrowing capacity. Once we’ve identified the right lender and loan, we submit your pre-approval application, giving you confidence to start house hunting with a clear budget.
With pre-approval in place, you can begin inspecting properties and making offers. We’ll help ensure the property you’re considering meets your lender’s requirements and any relevant government scheme or stamp duty eligibility criteria.
Once your offer is accepted, you’ll sign the Contract of Sale. During the cooling-off period (where applicable), your solicitor or conveyancer can review the contract, and you’ll usually arrange building and pest inspections if purchasing an established home.
After you’ve signed the contract, we lodge your full home loan application with the lender. They’ll complete a final assessment, order an independent property valuation, and, once everything is approved, issue your formal loan approval.
Before settlement, we’ll help ensure any eligible First Home Owner Grant applications and stamp duty concessions are correctly processed so everything is ready for settlement day. Your solicitor, lender and the seller’s representatives then coordinate the legal and financial transfer of the property.
Settlement is the day ownership officially changes hands. Your lender transfers the funds, the property title is registered in your name, and you’ll receive the keys to your new home. Depending on the contract, settlement typically occurs 30 to 90 days after contracts are exchanged.
Only a few common mistakes are enough to make the home loan process more expensive and stressful than it needs to be. With the right advice from the outset, most of these pitfalls are easily avoided.
House hunting without pre-approval. Having a home loan pre-approval gives you a realistic budget, strengthens your negotiation position, and reduces the risk of finance issues after your offer is accepted.
Buying $1 over a grant threshold. A property that sits just above your First Home Owner Grant or stamp duty concession threshold can significantly increase upfront costs. Understand the eligibility limits before making an offer!
Forgetting hidden costs. Your deposit isn’t the only expense to budget for. Conveyancing fees, building and pest inspections, moving costs, insurance and settlement adjustments can all add to your upfront expenses.
Assuming you don’t qualify. Many buyers miss out on valuable assistance simply because they assume they won’t qualify. Eligibility rules change regularly, so it’s always worth checking what grants are available before ruling yourself out.
Applying for grants too late. Most government grants and stamp duty concessions need to be arranged before or at settlement. Applying too late can delay settlement or mean you miss out on available benefits altogether.
Maxing out borrowing capacity. Just because a lender approves a certain loan amount doesn’t mean you should borrow the maximum. Choosing a repayment that’s comfortable for your budget is essential to avoid struggle.
Your job shouldn’t stop you from buying your first home. Different lenders assess income in different ways, and choosing the right lender can make a significant difference to your borrowing capacity and approval chances.
If you’re employed full-time or part-time on a PAYG basis, your application is generally straightforward. Most lenders require recent payslips, your latest income statement or tax return, identification and bank statements to verify your income and expenses.
Being self-employed doesn’t mean fewer lending options but simply requires the right approach. While many lenders assess one to two years of tax returns and financial statements, others offer alternative income verification or flexible assessment policies for eligible borrowers.
Many lenders will consider casual and part-time income, provided you’ve demonstrated consistent employment over time. Depending on the lender, you’ll typically need between six and twelve months of continuous employment, although some may accept shorter employment histories too.
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We track Australian Government 5% Deposit Scheme, Help to Buy and every state's FHOG and stamp duty rules so you don't have to.
In most cases, you won't pay us a direct brokerage fee. We are paid by the lender at settlement, at no extra cost to you, which we will disclose to you. Any applicable fees will be disclosed before you proceed.
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While a 20% deposit allows you to avoid Lenders Mortgage Insurance (LMI), it’s not essential. Many first home buyers purchase with a deposit of 5% to 10% by using government initiatives like the Australian Government 5% Deposit Scheme. The right deposit depends on your financial situation, the property’s purchase price and the lender’s requirements. We can assess your options and help you understand how much you’ll need to get started.
They’re two separate forms of government assistance. The First Home Owner Grant (FHOG) is a one-off payment, generally available for eligible new homes. Stamp duty concessions reduce or eliminate the transfer duty payable when purchasing a property, and depending on your state or territory, may apply to both new and established homes.
In many cases, yes. Eligible buyers can often combine the First Home Guarantee with their state’s First Home Owner Grant and any available stamp duty concessions. Some programs, such as Help to Buy, have different eligibility rules and generally can’t be used alongside the Australian Government 5% Deposit Scheme.
A mortgage broker comes at no cost to you in most cases. We’re paid by the lender once your home loan settles, and we’re required to disclose any commission before you proceed with your application.
It’s possible. Since changes introduced in October 2025 removed the previous income limits, many more first-home buyers are now eligible for the scheme. However, you are still required to meet the lender’s borrowing criteria and satisfy the scheme’s other requirements, including property eligibility.
The right choice depends on your budget, timeline and lifestyle goals. Building or buying a new home may provide access to additional government grants and concessions, while established homes generally offer a faster settlement and greater choice of locations.
Not at all. While we are based in Chermside, Brisbane, we help first-home buyers across Australia. Whether you live in Sydney, Melbourne, Perth, Adelaide or anywhere else, we can manage your home loan by phone, email or video call.
Most home loan pre-approvals remain valid for around 90 days, although this varies between lenders. If your pre-approval expires before you find a property, it can often be renewed provided your financial circumstances haven’t changed significantly.
Depending on the property’s purchase price and your eligibility, yes its possible. Government schemes such as the Australian Government 5% Deposit Scheme, family guarantor home loans and some state-based assistance programs can significantly reduce the deposit required.
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