First Home Buyer Guide Australia

Lenders typically allow you to borrow 4–6× your gross income, subject to a serviceability assessment at an interest rate buffer of +3% above the loan rate (APRA's buffer). A household earning $120,000 can typically borrow $550,000–$700,000 depending on expenses, debts, and the lender.

Use the mortgage repayment calculator to see monthly repayments at different loan sizes and make sure they fit your budget before you go to a broker.

At 20% deposit you avoid LMI entirely. At 5% deposit you can use the First Home Guarantee to avoid LMI — but 35,000 places per year go fast. LMI at 90% LVR adds roughly $10,000–$15,000 to a $600,000 loan.

Use the First Home Buyer Calculator to see exactly what deposit is required for your target property price, and whether you qualify for the First Home Guarantee or FHSS.

To apply: you must not have previously owned residential property in Australia, be an Australian citizen or permanent resident, meet the income cap, and purchase within the relevant property price cap for your location.

Applications go through participating lenders (not directly to the government). Major banks and mortgage brokers can process this. Apply for pre-approval with the guarantee before you start making offers.

If you haven't reached your deposit target yet, the FHSS scheme lets you make extra super contributions and withdraw them with a tax advantage. At a 32.5% marginal rate, contributing $10,000 through FHSS saves roughly $1,750 in tax compared to saving in a regular bank account.

Most states exempt or discount stamp duty for first home buyers under certain price thresholds. State grants (ranging from $10,000 to $30,000) are typically for new builds only. Check your state's revenue office or use the stamp duty calculator to see exactly what you owe.

Pre-approval (also called conditional approval or approval in principle) is not a guarantee of finance, but it tells you your borrowing limit and makes you a credible buyer. Pre-approvals are typically valid for 90 days. Have your tax returns, payslips, bank statements, and identification ready before applying.

Before exchanging contracts, get a building and pest inspection ($400–$800) and have a conveyancer or solicitor review the contract of sale. In NSW and QLD, you have a cooling-off period after exchange (5 days in NSW). In Victoria, cooling-off is 3 business days. In WA, there is no statutory cooling-off period for private sales.

At exchange, you pay 10% deposit (negotiable — sometimes 5% or 0.25% in competitive markets). The remaining purchase price and all associated costs are paid at settlement, typically 4–6 weeks later. Your lender will conduct a valuation before settlement.

At settlement, the title transfers and you receive keys. You'll also need to arrange buildings insurance before settlement (required by most lenders before they release funds). After settlement, focus on building an offset account balance — every dollar in offset reduces the interest charged daily.