Buying your first home is an exciting milestone. You can make the space your own, become your own landlord and invest in an asset that helps set up your financial future.
If you are still deciding whether homeownership is right for you right now, explore our Buying vs. Renting comparison to evaluate the upfront and long-term costs.
With a Loan Market broker on side, you can:
Find out how much you may be able to borrow to purchase property.
Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.
Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can meet your repayments.
As a general rule, saving a 20% deposit helps you avoid paying Lenders Mortgage Insurance (LMI). It is possible to get a home loan with as little as a 5% deposit with some lenders. You will also need to consider additional costs, including stamp duty and legal fees.
If you are combining savings with relative or friends to reach your target faster, read our guide on buying with family and friends.
Some first-home buyers may be eligible for a first-home buyers grant in their state or territory, that could enable them to purchase with a smaller deposit. There are also stamp duty concessions available in some areas.
We have this budget planning calculator to help you hit your deposit goal.
The amount you can borrow for your home loan as a first-home buyer depends on your circumstances, deposit saved and the lender’s risk appetite. Lenders will look at your income, liabilities, credit report, assets and saving history to calculate your borrowing power.
As a guide, you can calculate an estimate of how much you may be able to borrow using this borrowing power calculator.
There are thousands of home loan products available for first-home buyers with many options around the loan features (such as an offset account), loan term and whether you want a variable rate, fixed rate or split. The right home loan for you as a first-home buyer will depend on your circumstances and goals.
Your Loan Market broker will create a shortlist of recommended home loans to suit your situation. They will compare over 60 mortgage providers to find an appropriate loan structure and features tailored to your goals.
The first home owners (buyers) grants vary depending on the state or territory you are in. The scheme offers a one-off payment to eligible first-home buyers to purchase a home or land. The amount offered and eligibility criteria differs by state and territory.
Some states or territories also offer stamp duty concessions to eligible first-home buyers.
Find out about the current first home buyer grant options in Australia.
You may also be eligible for federal initiatives like the Home Guarantee Scheme to buy with as little as 2% to 5% deposit without LMI, or the Help to Buy Scheme shared equity program.
Pre-approval from a lender is a conditional nod that they will lend you a set amount of money to purchase property. This can give you confidence to narrow your search for properties within your price range, show sellers you are serious and understand your likely repayments.
Pre-approvals are not essential, but they can be a good idea for first-home buyers to feel more confident when bidding. Keep in mind they are valid for usually around three months and are conditional on your situation not changing.
Stamp duty is a tax charged by the state or territory government on the sale of property. It is calculated as a percentage of the price paid for the property, but this percentage varies depending on the state or territory. Most governments offer a concession for first-home buyers where stamp duty is waived to a certain amount, and then a discount is applied up to a limit.
You can use this stamp duty calculator to work out how much stamp duty you may be required to pay.
Let us know what your goals are and we will connect you with a Loan Market broker directly.
Find a broker close to you, or set up a video call at a time that suits you.
