First Home Buyers in Australia: A Complete Guide to Buying Your First Home
Buying your first home is one of the biggest financial milestones in life. For many first home buyers in Australia, the process can feel overwhelming — from saving a deposit and understanding home loans to navigating government grants and stamp duty concessions.
This guide explains everything you need to know as a first home buyer, including available grants, loan options, and how professional mortgage advice can help you buy your first property with confidence.
Who Is Considered a First Home Buyer in Australia?
In Australia, you are generally considered a first home buyer if:
You have never owned property before
You have not previously held an interest in residential property
You are buying a home to live in (not purely as an investment)
Eligibility criteria may vary depending on the state or territory and the specific government incentives available.
First Home Buyer Grants and Government Support
Australia offers several schemes to help first home buyers enter the property market.
🏡 First Home Owner Grant (FHOG)
The First Home Owner Grant provides eligible buyers with a one-off payment when purchasing or building a new home. Grant amounts and eligibility vary by state.
💰 Stamp Duty Concessions
Many states offer:
Stamp duty exemptions
Stamp duty discounts
These concessions can save first home buyers thousands of dollars upfront.
📉 First Home Guarantee Scheme
This federal scheme allows eligible first home buyers to:
Purchase a home with as little as 5% deposit
Avoid paying Lenders Mortgage Insurance (LMI)
This is a major advantage for buyers struggling to save a larger deposit.
How Much Deposit Do First Home Buyers Need?
Traditionally, a 20% deposit was required to avoid LMI. However, today many first home buyers can:
Buy with 5–10% deposit
Use government guarantee schemes
Access lender-specific low-deposit loans
A mortgage broker can help assess your borrowing power and identify the most suitable options.
Choosing the Right Home Loan as a First Home Buyer
There is no one-size-fits-all home loan. First home buyers should consider:
🔹 Fixed vs Variable Interest Rates
Fixed rates offer certainty in repayments
Variable rates provide flexibility and potential savings
🔹 Loan Features
Offset accounts
Redraw facilities
Extra repayments without penalties
🔹 Repayment Structures
Principal & interest loans (most common)
Interest-only loans (less common for owner-occupiers)
Professional mortgage advice helps ensure your loan supports your long-term financial goals.
Common Mistakes First Home Buyers Should Avoid
Many first home buyers make avoidable mistakes, including:
Borrowing at their maximum limit
Ignoring additional costs (legal fees, inspections, insurance)
Not getting pre-approval before house hunting
Choosing a loan based on rate alone
Independent mortgage advice can help you avoid costly errors.
The First Home Buying Process in Australia
Here's a simplified overview of the process:
Assess your budget and savings
Obtain loan pre-approval
Research suburbs and property types
Make an offer or attend auction
Finalise finance and legal checks
Settlement and move-in
Having a mortgage broker guide you through each step can reduce stress and improve outcomes.
Why First Home Buyers Should Use a Mortgage Broker
A qualified mortgage broker for first home buyers can:
Compare loans from multiple lenders
Explain complex loan terms in plain English
Assist with government grant eligibility
Manage the application and approval process
Negotiate competitive interest rates
Best of all, mortgage broker services are usually free for borrowers, as brokers are paid by lenders.
First Home Buyer Advice Tailored to Your Situation
Every first home buyer's situation is unique. Factors such as income, employment type, family structure, and future plans all affect the best loan solution.
At Counting Beans Advice, we provide personalised first home buyer mortgage advice to help Australians:
Buy sooner with confidence
Secure competitive loan options
Understand grants and concessions
Plan for long-term financial stability
Speak to a First Home Buyer Specialist Today
If you're planning to buy your first home in Australia, expert advice can make all the difference.