First Home Buyer Guides
A first home buyer's starting point.
Buying your first home involves terms and processes that can feel unfamiliar. These guides break down the key concepts so you know what to expect before you start looking.
Deposit basics
Most lenders prefer a deposit of at least 20% of the property price to avoid lenders mortgage insurance, though many first home buyers borrow with a smaller deposit using LMI or eligible government schemes.
Lenders mortgage insurance (LMI)
LMI protects the lender, not the borrower, if you default on the loan. It is generally required when your deposit is below 20% and can be paid upfront or added to your loan amount.
Government grants and schemes
Various federal and state schemes exist to help first home buyers, such as grants, stamp duty concessions and low-deposit guarantee schemes. Eligibility and availability change over time, so it is worth checking current settings before assuming you qualify.
Pre-approval vs formal approval
Pre-approval gives an indication of what a lender may lend you, based on the information provided, and is useful when house hunting. Formal approval happens after you have a specific property and the lender has completed full checks, including a valuation.
Costs beyond the deposit
Stamp duty, legal fees, building and pest inspections, and moving costs all add up. Budgeting for these alongside your deposit avoids surprises late in the process.
This information is general in nature and does not take into account your personal circumstances. It is not financial advice or credit advice. Consider seeking professional advice before making a decision.