First Home Buyer Home Loans

While a 20% deposit may help avoid Lenders Mortgage Insurance (LMI), some buyers may be able to purchase a property with a smaller deposit depending on lender requirements and available support options.

Depending on your circumstances, options may include:

Government guarantee schemes for eligible first home buyers, Family guarantor arrangements, Profession-specific lending benefits offered by some lenders, Low-deposit lending options available through selected lenders, Certain professions, such as doctors, nurses, police officers and other eligible professionals, may qualify for lender policies that reduce or waive LMI requirements, subject to lender criteria and eligibility requirements.

Because available options differ between lenders and government programs, it's important to understand what may be available before assuming you need a full 20% deposit.

Depending on your eligibility and the property you're purchasing, government assistance may be available to help reduce upfront costs.
This may include:

First Home Owner Grants (where applicable)

Stamp duty concessions or exemptions

Government guarantee schemes

Other state-based first home buyer initiatives

Eligibility requirements vary between states and territories and may change over time. Understanding what assistance may be available before purchasing can help you plan more effectively and avoid missing opportunities.
Because eligibility depends on your circumstances and the property being purchased, it's worth confirming available options before making an offer.

Borrowing capacity is influenced by several factors including income, existing debts, living expenses, credit card limits, dependants and your available deposit.
Different lenders use different assessment models, which means borrowing capacity can vary considerably from one lender to another.
If you're unsure where you stand, obtaining a borrowing assessment before property hunting can provide greater clarity and confidence.

Pre-approval is an indication from a lender of how much they may be prepared to lend, subject to certain conditions.
Many buyers seek pre-approval before searching for a property because it can help establish a realistic budget and reduce uncertainty during the buying process.

In addition to your deposit, there may be other costs associated with purchasing a property, including:

Stamp duty (where applicable)

Legal and conveyancing fees

Building and pest inspections

Government registration fees

Lenders Mortgage Insurance (if applicable)

Moving expenses

Understanding these costs early can help avoid surprises later in the process.

HECS or HELP debt does not automatically prevent you from obtaining a home loan. However, lenders generally consider repayment obligations when assessing serviceability.
The impact varies depending on income level, other commitments and lender assessment policies.

Yes. Most lenders assess credit cards based on the available credit limit rather than the current balance owing.
Reducing unused credit card limits before applying may improve borrowing capacity in some circumstances.

Many lenders accept gifted funds from immediate family members, provided certain requirements are met. Some lenders may require evidence confirming that the funds are a genuine gift and not a loan.
Requirements vary between lenders.

There is no universal answer. Saving a larger deposit may improve borrowing options and reduce borrowing costs, while buying sooner may allow you to enter the market earlier.
The appropriate approach depends on your financial position, goals and market conditions.

Many first home buyers focus primarily on income, but lenders also assess living expenses, existing debts, credit limits, dependants and other financial commitments.
Differences in lender servicing calculators can also lead to significantly different borrowing outcomes.
Understanding how lenders assess your circumstances can help identify realistic borrowing expectations before you apply.

Both loan types have advantages and disadvantages.
Fixed rates provide repayment certainty for a set period, while variable rates generally offer greater flexibility and may allow borrowers to benefit from future rate reductions.
The most suitable option depends on your financial circumstances and preferences.

An offset account is a transaction account linked to your home loan.
The balance held in the account reduces the portion of your loan on which interest is calculated, potentially reducing interest costs over time while maintaining access to your funds.

Approval timeframes vary depending on the lender, application complexity and documentation provided.
Providing complete documentation upfront can help reduce delays and improve processing efficiency.

Most lenders commonly request:

Identification documents

Recent payslips

Income statements or PAYG summaries

Bank statements

Evidence of savings

Details of existing debts and liabilities

Additional documents may be required depending on your circumstances.

Common mistakes include:

Focusing only on the purchase price

Forgetting to budget for additional costs

House hunting before understanding borrowing capacity

Keeping unnecessary credit card limits

Not comparing lender options

Failing to understand the difference between loan products and features

Being prepared early can help make the buying process smoother and reduce unnecessary stress.