First Home Buyer Loans Australia

Many lenders prefer a 20% deposit, but you don’t always need that much. Some first home buyers can buy with as little as 5% through a government scheme or a low-deposit loan. A smaller deposit can mean Lenders Mortgage Insurance (LMI) and a higher loan amount. Remember to budget for extra costs like stamp duty, legal fees and inspections. We’ll work out what you actually need based on your situation.

It depends on where you’re buying, the type of property and your circumstances. States and territories offer different first home owner grants and stamp duty concessions, and many apply only to certain property types or price ranges. At federal level, the 5% Deposit Scheme (previously the First Home Guarantee) is part of the Australian Government’s Home Guarantee Scheme. It has no place limits and no income caps for eligible first home buyers with a 5% deposit. Government settings change, so we’ll check what you qualify for before you apply.

Lenders Mortgage Insurance is a one-off cost that protects the lender, not you, when your deposit is under 20%. It’s often added to the loan. You may be able to avoid it with a 20% deposit, a guarantor, or an eligible government scheme. Under the First Home Guarantee, eligible buyers with a 5% deposit can purchase without paying LMI. We’ll compare your options and the costs involved.

Pre-approval is a lender’s conditional indication of how much you may be able to borrow, before you’ve chosen a property. It helps you set a realistic budget, shows agents you’re serious, and lets you move faster when you find the right home. It isn’t a guarantee of final approval, and it usually expires after a set period, so we’ll help you time it well.

Lenders look at your income, living expenses, debts (including credit card limits and HELP/HECS), deposit and credit history. Each lender assesses these differently, so borrowing power can vary between lenders. We’ll calculate your range before you start house hunting, and show you ways to strengthen your position if needed.

There’s no single right answer. A fixed rate gives repayment certainty for a set period. A variable rate can move up or down, and often offers more flexibility, such as extra repayments and offset accounts. Some buyers split their loan between the two. We’ll explain the trade-offs and what suits your budget and plans.

Yes, in many cases. A guarantor, usually a family member, uses the equity in their own property to support part of your loan. This can help you buy with a smaller deposit and may help you avoid LMI. It’s a big commitment for the guarantor, so it’s important they understand the risks and get their own advice. We’ll walk you both through how it works.

For most home loans, we’re paid by the lender once your loan settles, so there’s [typically no upfront cost to you]. We’ll always explain how we’re paid and any fees before you proceed.

Pre-approval can take from a few days to a couple of weeks, depending on how quickly we have your documents. Once you’ve signed a contract, formal approval and settlement usually take several weeks, depending on the lender, the property and the settlement period in your contract. We’ll keep you updated at every stage so there are no surprises.