First Home Buyer Loans
Take the leap into homeownership with expert support. We simplify the first home loan process and help you access grants, incentives, and the right lender for your needs.
First Time Home Buyer Where To Start
Need a guide to buying first house? Then you’ve come to the right place.
For first home buyers in NSW, this free online resource will give you some valuable insights into the property market in Australia. Our guide for first time buyers will tackle essential pieces of information on mortgages, deposit, home loan types, and other important issues.
What is a first home buyer?
First off, who is a first time home buyer? For some, it is important to know what is considered a first time home buyer because some government grants (we will get to this later) have certain criteria on who qualifies, e.g., the stamp duty exemption.
Basically, a first home buyer is someone buying a property (i.e., house or flat) who has never owned one in the past and no property to sell. If you’re a first time buyer, this precludes the possibility of you being a homeowner, an investor, or someone who is already mortgaging or re-mortgaging an existing home.
Keep reading to get expert advice on how to apply for a home loan first time buyer like you can use as valuable reference.
What is needed for first time home buyer: Costs of buying a home
Some folks who express interest in buying property are not aware of the many upfront and ongoing costs associated with this kind of purchase other than the mortgage itself.
Below is a list of expenses you can expect to comply with. Each one of these costs will vary depending on the state, territory, and area you want to buy in.
- Legal/conveyancing fees (can go up to $2500)
- Loan application fees
- Stamp duty (state government taxes)
- Pest and property inspection fees
- Lenders Mortgage Insurance (LMI)
- Land tax
- Buyers’ agents’ fee
- Council rates
- Strata searches
- Utility connections
How much deposit for first home buyer?
You may find yourself wondering “as a first home buyer how much deposit do I need?” or “how do I get a first time home buyer loan?”
Typically, borrowers are asked to make a 20% deposit of the property’s purchase price.
However, there is an option for those who can’t make the 20% deposit requirement for their first home mortgage. Some home lenders are happy to accept a 5% of 10% deposit — but there’s a catch.
Lender’s Mortgage Insurance
There is what we call a loan-to-value ratio (LVR) which refers to the amount you borrow relative to your property’s value. If your LVR is higher than 80%, it means you pose a greater risk to the lender.
While it is possible to buy your home for much less and get into the market with only a 5% or 10% deposit of the property’s value, the caveat is that you do have to have to pay insurance to your lender — also known as Lenders Mortgage Insurance (LMI). This additional fee is put in place as a means to protect lenders from risky loans held by borrowers with a very low deposit.
A low deposit option may just be what you need to get your first foot up the property ladder. But keep in mind that having to pay LMI means you will pay bigger monthly payments.
Tips to Help First Home Buyers in NSW Save for a First Home Mortgage Deposit
As a first home buyer, saving for your first home mortgage deposit is a big commitment and sometimes your cash goal can seem out of reach.
Below are top tips to help you save for a house deposit in Australia and get into your first home quicker.
Draw a line between your savings and your everyday cash
Online savings accounts are better than traditional bank accounts because you can’t use them to make purchases or withdraw cash.Separating your money this way can help you avoid temptation to dip into your savings. It also makes it harder to get access to it.
Automate your savings
Determine how much of your salary you’d like to set aside for savings. Then, set up a regular transfer of your pay into your savings account. You may even ask your employer to split your salary across your different bank accounts.Another way to automate your savings is by rounding up your transactions. Some savings accounts or apps, for instance, let you round-up your transactions to the nearest dollar or $5 so when you buy a coffee for $5.85, your round-up setting would divert “change” of the “round-up” straight into your savings account.These two are easy and automatic methods to automatically put money away. Every little bit helps, and this puts you on an “out of sight, out of mind” mode.
Cut back unnecessary spending
When you go over your bank or credit card statements, you may find things like subscriptions or memberships that you can do away with or will be wiser to cancel.Consider diverting these expenses to your savings account until you save up enough money for buying first home.
Reduce your bills
There are many ways to reduce your bills. When grocery shopping for example, you can order your groceries online so you can see exactly how much you’re going to spend and have more time to decide what you really need.You can also reduce your food consumption by planning your meals, buying in-season produce, buying meat in bulk, and cooking dishes that can be easy leftover options.When reducing your energy bills, try comparing rates from energy suppliers regularly and pay attention to regular plan costs.
And finally, start a savings plan
There is no getting your way around it — a savings plan is a must as a first home buyer wondering how to apply for first time home buyer loan.A bigger deposit means smaller debt and monthly repayments, so it is crucial that you create a savings plan. You can start by tracking your expenditures and setting a realistic budget so you can stay on top of your finances. This will help you pay all of your expenses and save wherever you can.
What are my options if I don't have a deposit ready?
There really aren’t a lot of ‘no deposit’ type of home loans out there. The ones that do exist have very strict criteria that entails a larger interest rate, having a near-perfect credit score, and a very stable employment history.
Some individuals seek financial help from their home-owning parents and family members by asking them to provide a cash gift to help augment their deposit or to become their guarantor.
First Home Owners Grant
The First Home Owners Grant (FHOG) is a state-based program that gives free funding for first home buyers whose properties have reached settlement. Some states offer grants up to $15,000 and prioritise those who are undertaking construction of brand new homes.
Each state has their own set of requirements for eligibility. Click here for more information.
First Home Super Savers Scheme
First Home Loan Deposit Scheme
Family Home Guarantee
How to apply for first time home buyer grants
Buying first home: How to apply for first time home buyer loan
So you’ve decided you want a house you could call your own, and take out a mortgage for it. Now you’re wondering where and how to begin applying for a home loan.
First, you must book an appointment with a trusted home loan expert to advise you of your options based on your situation, goals, and reasons for getting a home loan.
Next, prepare the necessary paperwork (e.g., payslips, bank statements, IDs, etc) for home loan conditional pre-approval. This process of qualification is where your home broker determines how much you can borrow and how best to approach your loan application.
Once you’re approved for a conditional pre-approval, you can begin scouting for your dream home. After finding the property you want, you make a bid to the vendor.
If the sale is a success, your mortgage broker will arrange a property valuation to determine the value of the property.
For more information, read our article on where to start the home loan process.
Getting Your Mortgage: How do I get a first time home buyer loan?
The next thing you need to do is work on getting unconditional approval, also known as formal approval. This is where home lenders will conclusively determine if you qualify for a loan after having taken all of your personal information into account.
As a first time home buyer how much can I afford?
Your mortgage broker will be able to determine for you how much you can afford based on their assessment of your financial records. They will help you make sure you meet all of the conditions, and will be with you throughout the entire process.
They can even negotiate with the lender on your behalf to help you get the home loan product that best suits your financial situation.
Which home loan for a first home buyer NSW:
fixed, variable, or split?
There are three types of home loans on the market. It is up to you to decide which one can accommodate your lifestyle and financial needs.
The first type is the fixed loan. It is tied to a fixed interest rate and requires you to pay a certain amount for a fixed period of time. This type of loan is great for those who want consistent payments and are averse to interest rate rise.
One major downside to this is that when interest rates do decline, your payment will remain the same and unaffected.
The second type is the variable loan. It is tied to a floating interest rate, which means your monthly repayments may change depending on whether the interest rate increases or declines. This type of loan is great for those who want a higher degree of flexibility in their repayments.
The third type is the split loan where your loan is divided into multiple parts. You can nominate a portion of your loan to be tied to a fixed interest rate, and the remainder could have a variable interest rate. This option is great for those who want to get the features from both variable and fixed rate loans.
To know which one will suit your personal circumstances best, get professional advice from the best mortgage broker in your area
Reasons a First Home Buyer Should Use A Mortgage Broker NSW
Mortgage brokers NSW provide a valuable service that is often overlooked by first home buyers. They help you find the best deal on a loan, manage paperwork, and navigate lender negotiations.
Below are the most important ways a home loan mortgage broker can help ease the process of buying your first home.
Wide panel of lenders and products
Get access to a wide panel of lenders and can help you compare a range of home loan products to find the one that best suits your needs.
Time-saving
Save time by letting your broker do the research and paperwork for you, which can be especially helpful if you're a first-time home buyer.
Expert advice
Be educated by a professional on loan types, interest rates, and repayment options, helping you make an informed decision.
Negotiating power
Brokers can negotiate with lenders on your behalf to help secure better interest rates or loan terms.
Simplified application process
Skip the paperwork hassle. Brokers help you gather documents and fill everything out correctly for smoother approval.
Help with credit issues
If you have a poor credit score or other issues, a mortgage broker can help find lenders more willing to work with you.
Ongoing support
Brokers support you through the loan's life — including refinancing, negotiations, and loan modifications.
Peace of mind
Your broker helps you understand the process and avoid mistakes, ensuring you’re comfortable with your loan terms.
Get support during the settlement process
From conveyancing to final inspections, your broker supports you right through until the contract is complete.
Let the mortgage professionals at Stryve help you
The buying experience is a huge learning curve and one of the biggest decisions you’ll make in your life. It can be somewhat a little overwhelming at first. You’re in safe hands with Stryve Finance.
Appointment
Take the first step to organise an appointment with us to discuss your plans to purchase. We will let you know what can be done, what’s involved and the best lenders to help your dream become a reality.
Loan Application
We will let you know what paperwork is required to put together a pre-approval to give you the financial backing to make offers with confidence.
Ongoing Help
We will continue to service our clients long after settlement. From interest rate reviews right through to ongoing loan maintenance. You will always have a point of contact for all future lending.
Expert advice from start to finish
Have an expert broker in your corner navigating you through the complexities of getting the right loan for your circumstances.
Getting the toughest loans approved
Your success is our success
Why Stryve?
We negotiate between various lenders on your behalf
FAQs on First Home Mortgage
See what our clients have to say about us
I could not fault Dylan throughout the entire experience working with him. Both husband and I are very new to the world of refinancing and home loans, etc and Dylan was so incredibly patient and clear with all information and options. He was incredibly professional, responsive and friendly and made the entire experience so easy. I will definitely be working with Dylan again in the future. Highly recommend working with Dylan to get you the best deal as painlessly as possible!
Jordan, ACT
I have dealt with a few banks and brokers during the course of a couple of mortgages. The experience I had with Dylan trumps all former experiences. He offers choice and guides you through the process. He takes away the headache and stress associated with mortgages and constantly keeps you updated. Dylan takes best customer practices to a whole new level and I seriously cannot thank him enough. If you're thinking about a mortgage or refinance - Dylan's your man - simple!
Donna, NSW
Dylan was absolutely fantastic to work with, made our remortgage and investment property loan run seamlessly. Always contactable even during January holidays and Covid. Always gives 100% and attention to detail early on made the process less stressful and gave us confidence
Kristy, NSW
Being a first home buyer can be a nerve-racking minefield but Dylan Bertovic from Stryve Finance made the whole process feel smooth. He checked-in regularly over a two year period (off the plan purchase) and was confident, clear and friendly in his approach. Dylan was a clear leader when other brokers failed to deliver. He was most definitely the most pleasurable person to deal with compared to everyone else in the experience. Also still managed to get us a very competitive rate considering our extremely tricky situation. He made our dream happen and for that we could not thank or recommend him enough!
Dimi, NSW
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