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Home Loans · First Home

Your first home, closer than you think

Buying your first home is exciting, but there's a lot to figure out. How much can you borrow? How much deposit do you need? Which government schemes can help? And which lender is right for you? Whether you're ready to buy now or just starting to explore your options, we'll help you understand what's possible.

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Scott, founder of koala financial
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Your first home, step by step

There's more help available than most first home buyers realise. Here's the path from first chat to keys.

1

Where you stand

While a 20% deposit gives you the most flexibility, many first home buyers purchase with much less. Depending on your circumstances, you may be able to buy with as little as a 5% deposit through the Australian Government 5% Deposit Scheme or use a family guarantor to reduce the cash you need upfront.

20%+ deposit: No LMI, widest lender choice.
5% to under 20%: Buy with LMI or avoid it through eligible government schemes.
Low or no deposit: Options may include a family guarantee or other strategies.
Know your upfront costs: Stamp duty, legal fees, inspections and everything else you'll need to budget for.
$606k
indicative owner-occupier loan
about a $670k property with a 10% deposit
$120k
Run your full numbers - Borrowing Capacity

For educational purposes only. Open the full calculator for more detail.

How much can you borrow for a first home?

Your borrowing power is set by your income, expenses, debts and the lender's stress-test buffer, and it varies more between lenders than most first-timers expect.

Lenders assess your income against a benchmark of living expenses (even if you spend less), count every liability (credit card limits, car loans, HECS/HELP) and test your repayments at a buffer above the real rate. Every lender assesses income, expenses and debts differently, which means one lender may let you borrow significantly more than another.

Before you start looking, we’ll help you understand what you can realistically afford and recommend lenders that best suit your circumstances.

Get your starting estimate with the borrowing capacity calculator, then talk to us before you set your budget. A realistic pre-approval beats an optimistic online estimate every time.

2

Government assistance

Buying your first home can come with more support than you might think. Depending on your circumstances, you may be able to combine multiple government schemes and concessions.

Australian Government 5% Deposit Scheme

Eligible buyers can purchase with just 5% deposit (2% for single-parents) without paying Lender's Mortgage Insurance.

Stamp duty concessions

First home buyers may be eligible for significant stamp duty reductions or exemptions in your state.

First Home Owner Grant

Depending on your state and property type, you may be eligible for a government cash grant.

First Home Super Saver Scheme

Boost your deposit by making voluntary super contributions, then withdraw eligible savings to help buy your first home.

Scheme settings, price caps and grant amounts change frequently and vary by state. We confirm them against the current rules when we assess you.

Priced out where you want to live? Read what is rentvesting? and our state-by-state comparison before deciding.

How the schemes work in detail

The Australian Government 5% Deposit Scheme lets eligible buyers purchase with as little as a 5% deposit (2% for single-parents) while the government guarantees the rest, so no LMI applies. Eligibility criteria and property price caps apply and are set by Housing Australia, and checking your eligibility is one of the first things we do.

Stamp duty concessions are state-based and can be worth tens of thousands: most states offer full exemptions below a price threshold and concessions above it, though thresholds differ sharply between states and change at budget time. The First Home Owner Grant adds a cash grant in most states, typically for new builds.

The First Home Super Saver Scheme lets you save a deposit through voluntary super contributions at concessional tax rates, then withdraw it for the purchase. Which combination you qualify for depends on your state, income, and the property, and we map it for your exact situation rather than the generic version.

Help to Buy is a newer, shared-equity option: the government takes up to a 30% to 40% stake so you can buy with a 2% deposit and a smaller loan, in exchange for sharing the home's future growth. Our Help to Buy guide breaks down how it works and how it compares.

3

How we help you buy your first home

Clear guidance, regular updates and support at every stage, so you always know what happens next.

1

Start with a free discovery call

We talk through your income, deposit, preferred areas and timeframe to work out what may be achievable. If you are not ready yet, we show you what to improve and what to focus on next.

2

Work out your budget and available support

We calculate your borrowing power, expected repayments and upfront costs, then check whether you may qualify for the Australian Government 5% Deposit Scheme, stamp duty concessions, grants or the First Home Super Saver Scheme.

3

Get pre-approved

We recommend a suitable lender and apply for pre-approval, giving you a clear budget before you start making offers.

4

Find the right home

While you inspect properties, we help you understand the numbers, estimate repayments and check that the purchase fits within your approved budget.

5

Move from offer to approval

Once your offer is accepted, we manage the valuation and loan application, work with your conveyancer and keep the process moving towards formal approval.

6

Settle and collect the keys

We coordinate the finance through to settlement and remain available after you move in. Your loan is reviewed over time as rates, goals and circumstances change.

Know your budget before you fall in love with a property.
Make the most of the grants, schemes and concessions available to you.
Choose a loan that suits your goals today and your plans for tomorrow.
Get clear guidance and regular updates throughout the process.
Enjoy ongoing support long after you've picked up the keys.
4

What our clients say

Buying your first home is a big milestone. We're here to make the journey simpler, clearer and a whole lot less stressful.

Rated 5.0 on Google
“Scott was an unbelievable and reliable broker that doesn’t just walk you through all the hurdles associated with buying a house, but also advises you on all the options tailored to your situation. We couldn’t recommend…”
Chris Legge · Google review · read all →
FBAA memberCredit Representative 567904Australian Credit Licence 486112 (PCFS)Diploma of Finance and Mortgage Broking
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First home buyer FAQs

The questions first home buyers ask us most.

How much deposit do I need for my first home?

Most lenders want 5–20% of the purchase price plus costs. With the Australian Government 5% Deposit Scheme, eligible buyers can purchase with just 5% without paying Lender's Mortgage Insurance (LMI); a family guarantor can reduce the cash needed even further.

What's the Australian Government 5% Deposit Scheme?

An Australian Government scheme (via Housing Australia) that lets eligible first home buyers purchase with as little as 5% deposit, with the government guaranteeing the rest so you avoid LMI. There is also a 2% Deposit Scheme for single parents. Eligibility criteria and property price caps apply. We check your eligibility as part of the assessment.

Do first home buyers pay stamp duty?

Often not, or less. Most states offer full exemptions below a price threshold and concessions above it. The thresholds vary a lot by state and change at budget time. Our property purchase costs calculator models the current first-home concessions for every state.

What is the First Home Owner Grant?

A state government cash grant for eligible first home buyers. In most states it applies to new builds rather than established homes, and amounts vary by state. It can stack with stamp duty concessions and the Australian Government 5% Deposit Scheme if you're eligible for each.

Can I use my super to save a deposit?

Through the First Home Super Saver scheme, yes. You make voluntary contributions to super at concessional tax rates, then withdraw them (plus deemed earnings) for your first home deposit. There are annual and total caps, so it rewards starting early. Confirm details with your accountant.

What's a guarantor loan?

A family member (usually a parent) offers part of their own home's equity as additional security, which can let you buy with little or no cash deposit and no LMI. The guarantee can typically be released once you've built enough equity. It's a serious commitment for the guarantor, so we walk both parties through it properly.

Will my HECS/HELP debt stop me buying?

Rarely, but it does reduce your borrowing power, because lenders count the compulsory repayment as an expense. Lender policies on HELP debt differ, which is one of the things we use to pick where to apply.

How long does the process take?

From your first chat to getting the keys typically takes 6–12 weeks depending on the property. Pre-approval can often be done in a few days once we have your documents, and it lasts around three months.

Should I buy a home first or an investment property first?

It depends on where you can afford to buy versus where you want to live. If they're the same place, a first home with the government help stacked up is hard to beat. If they're not, rentvesting (buying an investment where the numbers work while renting where you live) is worth a serious look. We'll run both paths for you honestly.

What does using a broker cost me?

Nothing for standard residential lending. We're paid a commission by the lender you end up with, disclosed in writing. You get scheme eligibility checks, lender comparison and end-to-end application management without a fee.

Last updated: July 2026

This page is general information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, financial or tax advice. Figures are indicative estimates that vary by lender, state and property and can change, so we confirm your real numbers before you act. For tax questions, speak to a registered tax agent or accountant. Scott Lung, credit representative 567904 of Purple Circle Financial Services Pty Ltd (Australian Credit Licence 486112).

Ready to take the first step?

Book a free, no-obligation discovery call. We'll show you what you can borrow, the grants you may qualify for, and what to do next.