First Home Loans

Why work with a Loan Market broker to buy your first home?

With a Loan Market broker on side, you can:

1. Understand the amount you are likely to be able to borrow to help you refine your search and bid with confidence.
2. Get a shortlist of loans that are right for your circumstances and goals.
3. Ensure your application has its best chances of being approved.
4. Understand whether you qualify for a first-home buyer grant or stamp duty concession.

Your questions answered...

What deposit do I need to buy my first home?

As a general rule, saving a 20% deposit when buying your first home can help you avoid having to pay lenders mortgage insurance (LMI). It is possible to get a home loan with as little as a 5% deposit with some lenders. You will also need to consider additional costs including stamp duty and legal fees.

Some first-home buyers may be eligible for a first-home buyers grant in their state or territory, that could enable them to purchase with a smaller deposit. There are also stamp duty concessions available in some areas.

We have this budget planning calculator to help you hit your deposit goal.

How much money will lenders loan to me?

The amount you can borrow for your home loan as a first-home buyer depends on your circumstances, deposit saved and the lender’s risk appetite. Lenders will look at your income, liabilities, credit report, assets and saving history to calculate your borrowing power.

As a guide, you can calculate an estimate of how much you may be able to borrow using this borrowing power calculator.

How do I find the right first-home buyer home loan?

There are thousands of home loan products available for first-home buyers with many options around the loan term, features (such as an offset account) and whether you want a variable rate, fixed rate or split. The right home loan for you as a first-home buyer will depend on your circumstances and goals.

Your Loan Market broker will create a shortlist of recommended home loans to suit your situation. They will compare over 60 lenders to find an appropriate loan structure and features tailored to your goals.

What first home buyers grants are available?

The first home owners (buyers) grants vary depending on the state or territory you are in. The scheme offers a one-off payment to eligible first-home buyers to purchase a home or land. The amount offered and eligibility criteria differs by state and territory.

Some states or territories also offer stamp duty concessions to eligible first-home buyers.

Here’s an article explaining the current first home buyer grant options in Australia.

Should I get home loan pre-approval?

Pre-approval from a lender is a conditional nod that they will lend you a set amount of money to purchase property. This can give you confidence to narrow your search for properties within your price range, show sellers you are serious and understand your likely repayments.

Pre-approvals are not essential, but they can be a good idea for first-home buyers to feel more confident when bidding. Keep in mind they are valid for usually around three months and are conditional on your situation not changing.

How much is stamp duty for a first-home buyer?

Stamp duty is a tax charged by the state or territory government on the sale of property. It is calculated as a percentage of the price paid for the property, but this percentage varies depending on the state or territory. Most governments offer a concession for first-home buyers where stamp duty is waived to a certain amount, and then a discount is applied up to a limit.

You can use this stamp duty calculator to work out how much stamp duty you may be required to pay.

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