The Complete First Home Buyer's Guide for 2024

Buying your first home is one of the most exciting — and complex — financial decisions you’ll ever make. With property prices, government schemes, and lending criteria all changing regularly, it pays to have a clear roadmap before you start.

Step 1: Understand Your Borrowing Power

Before you start attending open homes, get a clear picture of how much you can borrow. Lenders assess your borrowing capacity based on:

• Your income (salary, rental, business income)
• Your expenses (living costs, existing debts, credit cards)
• Your deposit (typically 5–20% of the purchase price)
• Your credit history

Most lenders allow you to borrow up to 6x your annual income, but this varies significantly based on your individual circumstances.

Step 2: Save Your Deposit

A 20% deposit avoids Lenders Mortgage Insurance (LMI), which can add thousands to your loan. However, the First Home Guarantee scheme allows eligible buyers to purchase with just a 5% deposit without paying LMI.

Target deposit amounts for common price points:

• $600k property → $30,000 minimum (5%) or $120,000 to avoid LMI
• $800k property → $40,000 minimum (5%) or $160,000 to avoid LMI

Step 3: Explore Government Grants and Schemes

Australia offers several programs for first home buyers:

First Home Owner Grant (FHOG)

A one-off payment of up to $10,000 (varies by state) for eligible first home buyers purchasing or building a new home.

First Home Guarantee (FHBG)

Buy with a 5% deposit without paying LMI. The government guarantees up to 15% of the loan.

First Home Super Saver Scheme (FHSS)

Withdraw voluntary superannuation contributions to use as a deposit — great for the tax advantages.

Stamp Duty Concessions

Most states offer stamp duty exemptions or concessions for first home buyers under certain price thresholds.

Step 4: Get Pre-Approved

A pre-approval (also called conditional approval) gives you a borrowing limit and makes you a more credible buyer. It’s not a guarantee, but it signals to agents that you’re serious.

Pre-approvals typically last 90 days and can be extended if needed.

Step 5: Find Your Home

With your pre-approval in hand, you can start searching with confidence. Key considerations:

• Location and amenity (schools, transport, shopping)
• Property condition and potential renovation costs
• Building and pest inspection results
• Strata reports (for units/townhouses)

Step 6: Make an Offer and Exchange Contracts

Once you find your home, you’ll make an offer — either through private treaty or auction. If accepted, you’ll exchange contracts and pay a 10% deposit (or negotiate a smaller amount).

You typically have a 5-business-day cooling off period for private treaty purchases.

Step 7: Settlement

Settlement usually occurs 4–6 weeks after contract exchange. Your lender will finalise the loan, and you’ll pay the remaining purchase price plus costs.

On settlement day, you get the keys. Congratulations — you’re a homeowner!

Ready to Start?

Our brokers specialise in first home buyer loans. We’ll guide you through every step, help you access all available grants, and find you the most competitive rate from our panel of 60+ lenders — at no cost to you.