How to Get a First Home Buyer Loan (2025)

What Is a First Home Buyer Loan?

A first home buyer loan is a mortgage designed to help Australians purchase their first property. What sets it apart isn’t just the loan itself. It’s the range of support that often comes with it. From reduced deposit requirements to government schemes that waive costly Lenders Mortgage Insurance (LMI), these loans are meant to lower the barriers that typically hold people from entering the property market.

For many buyers, the key that turns “maybe one day” into “let’s do this now.” The best part? You don’t have to figure it out alone, especially when brokers like Stryve Finance can help you compare lenders, translate fine print, and find a loan that fits your life

Who’s Eligible for a First Home Buyer Loan?

If you’re new to the property market, you might wonder: Do I qualify for this? The good news is thatfirst home buyer loans are designed to be accessible, but there are a few key boxes you’ll need to tick.

To be eligible for most first home buyer loans and government-backed schemes in Australia, you typically must:

• Be at least 18 years old
• Be an Australian citizen or permanent resident
• Have never owned residential property in Australia
• Plan to live in the property (not buy it as an investment)
• Meet income limits (e.g. under $125,000 as a single, or $200,000 as a couple for many government schemes)
• Purchase a property under the price cap set for your region or city

Not sure if you qualify? Stryve Finance can check your eligibility across multiple lenders and schemes, often in a single phone call.

Government Schemes for First Home Buyers

Australia’s property market can be challenging, especially for first-time buyers. But there’s good news: the government has your back. Several national initiatives are designed to make homeownership more achievable — whether by helping you save a deposit faster or avoid costly fees like Lenders Mortgage Insurance (LMI).

Here are the key government schemes available to first home buyers:

1. First Home Guarantee (FHBG)

The First Home Guarantee is one of the most powerful tools for first-time buyers. Backed by the federal government, it allows eligible individuals or couples to purchase a home with a 5% deposit without paying Lenders Mortgage Insurance (LMI), which can save you thousands. The government essentially guarantees the remaining 15% to your lender, so you’re treated like you have a 20% deposit.

At Stryve, we help clients prepare and apply when the window opens, giving them a real edge.

2. Regional First Home Buyer Guarantee

If you’ve lived in a regional area for the past 12 months and want to buy locally, this scheme is designed for you. The Regional First Home Buyer Guarantee offers the same benefits as the FHBG — only a 5% deposit required and no LMI — but is specifically focused on supporting homeownership outside metro zones.

We’ve helped clients secure properties in areas they love without having to save for years — and we can help you do the same.

3. First Home Super Saver Scheme (FHSSS)

Saving for a deposit is often the most significant barrier for first home buyers, and the First Home Super Saver Scheme is a smart way to overcome it. This scheme lets you make voluntary contributions to your superannuation fund (up to $15,000 per year and $50,000 total) and then withdraw those funds to use as a deposit on your first home.

The big benefit? Your contributions are taxed at the lower super rate (typically 15%), helping your savings grow faster than in a standard bank account. If you're planning ahead, this can be a game-changer — and Stryve can show you how to make the most of it.

Check out the official Housing Australia eligibility page or ATO’s FHSS guide — or let us assess it all for you, obligation-free.

Tip: These schemes can often be used together, depending on your situation. A Stryve broker can check your eligibility and create a strategy that uses the best of all three

Real Example: Sophie’s Success Story

Sophie, a 29-year-old nurse in Newcastle, used Stryve Finance to apply for the First Home Guarantee. With a 5% deposit, she could buy a two-bedroom apartment and save over $12,000 in LMI fees.“I didn’t think I could afford anything,” she said. “Stryve made it simple, I didn’t even know I qualified until they checked.”

How Much Can I Borrow?

One of the most common and important questions we hear is: How much can I borrow as a first home buyer?The answer depends on a few key factors, but as a rule of thumb, lenders will look closely at your income, expenses, credit history, and existing debts to assess how much you can comfortably repay.

Here’s what typically affects your borrowing power:

• Your income: including wages, bonuses, or rental income
• Your current financial commitments: like credit cards, car loans, or personal loans
• Living expenses: banks calculate your cost of living based on your household
• Deposit size and LVR: a bigger deposit often means a better interest rate
• Employment type: full-time, casual, self-employed, etc.

Most first home buyers can borrow up to 80–95% of a property’s value, depending on the lender and whether you qualify for a government scheme that reduces your deposit requirement

Not sure where you stand? Try our Extra Repayment Calculator or let Stryve give you a free borrowing estimate tailored to your income and goals.

How to Apply for a First Home Buyer Loan (Step-by-Step)

Applying for your first home loan might sound intimidating, but it's completely manageable with the proper steps (and the right broker in your corner). Here’s what the process typically looks like:

Tip: The earlier you get professional advice, the smoother this process becomes. We help clients avoid common mistakes that delay approvals or cost them deals.

What Do Lenders Look For in First Home Buyer Applications?

Lenders don’t just look at how much money you make — they want to understand how you manage it. When you apply for a first home buyer loan, banks and lenders evaluate your overall financial health to decide whether you’re a safe bet.

Here’s what they’re paying attention to:

1. Income Stability: Are you employed full-time or part-time? How long have you been with your current employer? A stable income gives lenders confidence that you can keep up with repayments over time.
2. Genuine Savings: Lenders prefer to see that your deposit comes from money you’ve saved gradually over time, not just a gift or windfall. This proves you have the financial discipline to manage a mortgage.
3. Existing Debts: Lenders look at your debts, such as personal loans, credit cards, and buy-now-pay-later accounts. They also consider how you manage your debts. High debt levels can reduce your borrowing power or raise red flags.
4. Credit History: Your credit report tells lenders how reliably you’ve managed financial commitments. Missed payments or defaults could hurt your application, while a clean record helps it shine.
5. Living Expenses: Lenders calculate how much you spend on essentials (like groceries, transport, childcare, etc.) to ensure you can comfortably afford repayments on top of your everyday life.

Stryve Tip: Every lender has different approval criteria. We help match you to the one that fits your profile best, so you don’t waste time (or damage your credit) applying to the wrong one.

Tips to Improve Your Chances of Approval

If you dream of getting your loan approved on the first try, you're not alone. The good news? You can do a lot to boost your chances before hitting “apply.”

Here are some innovative, proven strategies to help you get across the line:

• Save More Than the Minimum Deposit: While some schemes allow you to buy with just 5%, saving a little extra — even 10% — can show lenders you’re low-risk. A larger deposit helps you unlock better interest rates and avoid borrowing costs.
• Pay Down or Close Unnecessary Debts: Got a credit card limit you’re not using? Cancel it or reduce it. Even if you don't carry a balance, lenders assess the limit, not just the debt. Clearing personal loans and reducing liabilities boosts your borrowing power significantly.
• Keep Records of ‘Genuine Savings’: Build your deposit gradually and leave it untouched for at least 3 months. Lenders want to see that you can consistently save — not just receive a one-off gift or tax refund.
• Secure or Stable Employment Helps: Being in the same job (or at least the same industry) for 6–12 months strengthens your application. If you're self-employed, be ready to show 2 years of financials.
• Speak to a Broker Early: The earlier you talk to a mortgage broker, the better. At Stryve, we help you build a winning application, choose the right lender for your situation, and avoid missteps that could delay or derail your plans.

Tip: A declined loan application can leave a mark on your credit report, so it’s worth getting it right the first time.

Frequently Asked Questions

Can I use a first home buyer loan to buy an investment property?

No — first home buyer loans and government schemes are strictly for owner-occupied properties. You must live in the property for at least 6–12 months, depending on the lender and scheme.

What if I’ve previously owned property overseas, do I still qualify?

Yes. As long as you haven’t owned residential property in Australia, you may still be eligible as a first home buyer here. At Stryve, we regularly help expats and permanent residents navigate this.

Can I build a home instead of buying an established one?

Absolutely. Most lenders support construction loans for first home buyers, and the major government schemes — like the First Home Guarantee — apply to new builds too. Just be aware the loan process has more stages.

Can I use money from my super as a deposit?

Yes — if you’ve made voluntary contributions under the First Home Super Saver Scheme (FHSSS), you can withdraw up to $50,000 to put toward your deposit. Your Stryve broker can help you through the release process.

How much does it cost to use a mortgage broker?

In most cases, it’s completely free for you. Brokers like Stryve are paid by the lender when your loan settles. We don’t charge clients, and we only recommend loans that are in your best interest — not the lender’s.

Can I combine multiple schemes together?

Often, yes. For example, you could use the First Home Super Saver Scheme to build your deposit, and then apply for the First Home Guarantee to buy with just 5% down. We’ll help you create the right strategy.

Ready to Buy Your First Home?

You don’t need to figure this out on your own. With the right loan, the right support, and the right strategy, your first home can be a reality sooner than you think.

At Stryve Finance, we’ve helped hundreds of first-time buyers navigate banks, unlock government support, and secure great rates, all with zero pressure and no jargon

Whether you're just starting to save or ready to make an offer, we’re here to guide you every step of the way