Buying your first home is exciting, but it can also feel like learning a new language. Deposits, borrowing power, grants, pre-approval and lender rules can throw people at first. A first home buyer mortgage broker helps make the process easier by explaining your options clearly, comparing suitable loans, and guiding you through the application step by step.
Why Buying Your First Home Can Feel Confusing
Buying your first home is exciting, but it can also feel like learning a new language. Deposits, borrowing power, grants, pre-approval and lender rules can throw people at first. A first home buyer mortgage broker helps make the process easier by explaining your options clearly, comparing suitable loans, and guiding you through the application step by step.
How Much Deposit Will You Need?
A lot of buyers start by asking how much deposit they’ll need. It depends on the property’s value, lender requirements and any government assistance you can get.
Before deciding how much you’ll need to save, consider:
- The price range of the property you intend to purchase
- Upfront costs, including stamp duty and legal fees
- Government grants or support schemes you may qualify for
- Deposit options available for your circumstances.
Not sure where to start? We’ll explain what you need and help you work out a savings goal that makes sense.
How Much Can You Comfortably Borrow?
Saving a deposit is only one part of the picture. We’ll also help you understand what your repayments could look like so you can buy with confidence.
Alongside your mortgage repayments, allow for costs such as:
- Council rates
- Home insurance
- Property maintenance
- Utilities
- Everyday living expenses.
Choosing a Home Loan That Fits You
Repayment flexibility, loan features, and lender criteria can all affect whether a loan suits you. Some home loans come with offset accounts or flexible repayments. These can save you money or give you more room, depending on how you manage the loan.
What Does a First Home Buyer Mortgage Broker Actually Do?
A mortgage broker compares home loans from a range of lenders to identify options that match your financial circumstances.
A first home buyer mortgage broker can help with:
- Reviewing your income, expenses and current financial commitments
- Explaining how lenders assess home loan applications
- Comparing loan options and features
- Preparing the required documentation
- Managing communication with the lender throughout the application.
At Home Loans Fast, we recommend loan options based on your financial position and lender requirements.
How Home Loans Fast Helps First Home Buyers
At Home Loans Fast, we simplify the home loan process by explaining your options clearly and managing the details on your behalf. Many first home buyers are also eligible for government support. Understanding what’s available can help reduce your upfront costs.
Our support includes:
- Reviewing your home buying goals and financial position
- Explaining suitable loan options to you
- Preparing your home loan application
- Managing communication with the lender throughout the assessment process.
What Support is Available for First Home Buyers in Victoria?
Various government programs may help eligible first time buyers in Victoria. At Home Loans Fast, we help you work out which schemes you may be eligible for before you start your loan application.
First Home Owner Grant
Eligible first home buyers who buy or build a new home in Victoria may get the $10,000 First Home Owner Grant (FHOG).
To generally qualify, you must:
- Be buying or building your first home
- Be an Australian citizen or permanent resident or apply with someone who is
- Purchase or build a new home within the current property value limits
- Live in the property as your principal place of residence for the required period.
The grant can contribute towards eligible upfront purchase costs.
Stamp Duty Exemptions and Concessions
Stamp duty is often one of the highest upfront costs when buying a property.
Eligible Victorian first home buyers may receive:
- A full land transfer duty exemption for homes with a dutiable value of up to $600,000
- A land transfer duty concession for homes with a dutiable value between $600,001 and $750,000.
These benefits can reduce the amount you need to pay at settlement.
Australian Government First Home Guarantee
The Australian Government’s First Home Guarantee, part of the Home Guarantee Scheme run by Housing Australia, lets eligible first home buyers purchase with as little as a 5% deposit. Eligible buyers can avoid paying LMI (Lenders Mortgage Insurance), subject to lender and scheme requirements
Eligibility Requirements:
Income Limits
To be eligible for the First Home Guarantee, applicants must meet the applicable income limits.
Current income limits are:
- Single applicants: Taxable income of up to $125,000 per financial year.
- Joint applicants: Combined taxable income of up to $200,000 per financial year.
If you’re eligible, the First Home Guarantee could let you buy with as little as a 5% deposit and skip Lenders Mortgage Insurance (LMI). Our team will check if you qualify and walk you through the latest eligibility rules before you apply.
Property Price Caps
The property being purchased must not exceed the property price cap applicable to its location.
Housing Australia publishes property price caps for each state, territory and regional area. For example, Melbourne and Regional Victoria have separate price caps.
As these limits may be updated, applicants should check the latest property price cap for the area in which they intend to buy.
First Home Guarantee Eligibility Requirements
Applicants must also satisfy the First Home Guarantee eligibility requirements published by Housing Australia. These generally include:
- Being an Australian citizen or permanent resident (as required under the current scheme rules)
- Being at least 18 years of age
- Intending to live in the property as an owner-occupier
- Purchasing an eligible residential property
- Meeting the minimum deposit requirements
- Obtaining a home loan through a participating lender
- Meeting the First Home Guarantee eligibility criteria.
Sources (current at the time of writing):
- Victorian State Revenue Office – First home buyer duty exemption or concession (stamp duty)
- Victorian Government – Support for First Home Buyers
- Housing Australia – Home Guarantee Scheme / First Home Guarantee
[Please Note: Eligibility and scheme settings can change, including property price caps and applicant requirements. Please check the current details with Home Loans Fast or Housing Australia before signing a contract.]
How Do Lenders Assess a First Home Loan Application?
Before approving a loan, lenders want to know you can afford the repayments comfortably. They’ll look at your income, expenses, savings and the property itself.
Income and Employment
The documents you’ll need depend on how you’re employed.
For example:
- Permanent employees generally provide recent payslips
- Casual employees may need to demonstrate consistent employment
- Self-employed applicants are usually required to provide business financial records
- Contractors may need evidence of ongoing income arrangements.
Expenses and Existing Financial Commitments
Lenders review your regular expenses and existing liabilities when calculating borrowing capacity.
These commonly include:
- Household expenses
- Personal loans
- Credit cards
- Car finance
- HECS or HELP debt
Savings History
Lenders may review your genuine savings history to understand how consistently you’ve been able to save before taking on a home loan.
The Property You Want to Buy
The property itself forms part of the lending assessment.
Lenders usually look at things like:
- Property location
- Property type
- Valuation outcome
- Current market conditions.
How Can You Choose a Home Loan That Suits Your Circumstances?
Interest rate is one factor when comparing home loans, but loan features and repayment flexibility should also be considered to determine long-term suitability.
Fixed Rate Loans
A fixed rate loan maintains the same interest rate for an agreed period, providing repayment certainty during the fixed term. Some lenders may restrict additional repayments or refinancing while the fixed rate applies.
Variable Rate Loans
Variable rate loans move in line with interest rate changes. They generally offer greater flexibility, including the ability to make additional repayments, depending on the lender’s terms.
Offset Accounts
An offset account is linked to your home loan. The money in an offset account reduces the loan balance on which interest is calculated, which can help lower the interest you pay.
Redraw
A redraw facility lets borrowers access eligible additional repayments made towards their home loan, subject to the lender’s conditions.
Home Loans Fast compares loan options based on your borrowing requirements, financial position and future goals, helping you select a loan that aligns with your needs.
Your First Home Starts Here
Whether you’re still saving your deposit or you’re ready to apply, Home Loans Fast is here to help you understand your options and move forward with confidence. And because our support doesn’t end at settlement, we’ll continue reviewing your loan each year to help make sure it still suits your needs.
And after settlement, we do not just disappear. Home Loans Fast provides annual loan reviews for current clients. Each year, we check whether your loan is still competitive, contact lenders where appropriate, and let you know if there may be a better rate or refinance option available. Talk to Home Loans Fast about buying your first home.
Frequently Asked Questions
It’s a good idea to speak with a mortgage broker before you start looking for properties. This gives you a clearer idea of how much you may be able to borrow, the documents you’ll need and your budget before you begin your property search.
No, pre-approval gives you an indication of how much you may be able to borrow. Final approval depends on factors such as the property you choose and the lender’s final assessment of your application.
In addition to your deposit, you may need to budget for conveyancing, property inspections, loan fees, moving costs and other expenses associated with buying a home.
Yes, it may still be possible. Approval depends on factors such as your employment history, income and the lender’s requirements. A mortgage broker can help identify lenders that may be suitable for your situation.
Most lenders ask for proof of identity, income documents, evidence of your savings, details of existing debts and information about the property you’re buying.
The timeframe varies depending on the lender, the complexity of your application and how quickly the required documents are provided.
Yes. Buying with a family member can increase your borrowing capacity by combining your incomes. Before applying, it’s important to understand the legal and financial responsibilities of owning a property together.
Your needs can change after you’ve settled into your new home. Reviewing your loan regularly helps make sure it’s still competitive and continues to suit your circumstances.
Yes. A broker can help explain which grants, concessions, or schemes may apply to your situation. Eligibility rules can change, so it is important to check current requirements before signing a contract.
