First Home Buyers

Buying Your First Home in Australia

Buying your first home in Australia is one of the most significant financial decisions you will make, and for many people, the process feels far more complicated than it needs to be. Understanding what's involved early — your borrowing capacity, deposit requirements, available grants, and what lenders are looking for — can make the difference between feeling stuck and feeling ready to move forward.

At The Digital Brokerage, we help first home buyers work through the process with clearer information, practical comparisons, and a digital-first approach that fits around how people actually prefer to work today.

What Does the First Home Buying Process Look Like?

Every first home buyer's situation is different, but the process generally follows a similar path: understanding what you can borrow, identifying an appropriate deposit, getting a pre-approval in place, finding a property, and then moving through to formal approval and settlement.

Where things often get complicated is in the detail — which lender will suit your income and employment type, how your deposit is structured, whether you're eligible for any government schemes, what loan features actually matter, and what the full cost of purchase looks like once stamp duty, legal fees, and other expenses are factored in. We help first home buyers work through each of these questions in a way that's practical rather than overwhelming.

Understanding Your Borrowing Capacity

Your borrowing capacity is determined by your income, existing debts and liabilities, living expenses, and the lending policies of the lender you apply with. Different lenders assess these factors differently, which means your maximum borrowing amount can vary considerably depending on where you apply.

As a first home buyer, it's also important to understand that a pre-approval is not a guarantee of finance — it's a conditional indication from a lender that they would likely lend you a certain amount based on the information provided. We help clients get a realistic view of their borrowing position before they start making offers, so there are fewer surprises during the formal approval stage.

Deposit Requirements and Lender Mortgage Insurance

Most Australian lenders require a minimum deposit of 5% to 10% of the purchase price for owner-occupied first home buyer loans, though a deposit below 20% will typically attract Lender's Mortgage Insurance (LMI). LMI protects the lender — not the borrower — in the event of a default, and can add a meaningful cost to the overall purchase.

For first home buyers who have a deposit of at least 5% but less than 20%, there are options worth exploring. The First Home Guarantee (formerly the First Home Loan Deposit Scheme) is a federal government program that allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI, with the government guaranteeing the remaining portion. Places are limited each financial year, and eligibility criteria apply including income caps and property price thresholds that vary by state and territory.

The First Home Owner Grant (FHOG) is a separate state-administered grant available to eligible first home buyers in most Australian states and territories. The amount and conditions vary by state, and the property must typically be a new or substantially renovated home in most jurisdictions. We help clients understand which grants and schemes may apply to their specific situation.

Stamp Duty Concessions for First Home Buyers

Stamp duty is one of the more significant upfront costs in a property purchase and varies considerably by state. Most Australian states and territories offer full or partial stamp duty concessions for eligible first home buyers, often tied to the purchase price of the property and whether it is a new or existing home.

Understanding your stamp duty position is an important part of calculating your total funds required, and we factor this into every first home buyer assessment.

Choosing the Right Home Loan

There's no single loan product that suits every first home buyer. The right choice depends on your income, how long you plan to hold the property, how important repayment flexibility is, and what features will actually be useful to you. Key considerations include:

• Whether a fixed or variable interest rate suits your circumstances
• Whether a split loan structure might provide a balance between rate certainty and flexibility
• Whether an offset account or redraw facility would be beneficial given your cash flow
• What the true comparison rate of a product looks like once fees are included

We compare options across a panel of Australian lenders to help clients see what's actually available to them — not just what a single bank is willing to offer.

What Lenders Look For in a First Home Buyer Application

Lenders assess home loan applications across several factors: income stability and employment type, credit history, existing debts, living expenses, and the nature of the deposit. First home buyers who have their deposit in genuine savings — funds held in a bank account for at least three months — are generally viewed more favourably than those relying entirely on gifts or other non-genuine savings, though lender policies on this vary.

Employment type also affects how your income is assessed. Permanent employees, self-employed applicants, contractors, and casual workers are each assessed differently depending on the lender. Understanding how your income will be viewed before you apply helps avoid unnecessary credit enquiries and application declines.

The Pre-Approval Process

A pre-approval gives you a clearer picture of what you can borrow before you start making offers on properties. It also puts you in a stronger position when negotiating — particularly at auction, where finance conditions are typically not available.

Pre-approvals are usually valid for 90 days and are subject to the property you purchase meeting the lender's requirements. We help first home buyers prepare a strong application so the pre-approval process is as smooth as possible and the conditions attached are clearly understood.

A Digital Process Built for First Home Buyers

Our process is built to work around how first home buyers actually prefer to engage — online, on their own schedule, without needing to sit across from a broker in a physical office. Documents can be uploaded digitally, progress can be tracked, and questions can be answered without unnecessary delays.

We are a credit representative of a licensed Australian credit assistance provider and operate in accordance with our obligations under the National Consumer Credit Protection Act 2009 (NCCP Act). Our role is to help clients make more informed decisions — not to place them into a loan that benefits a lender relationship.

Is Now a Good Time to Buy Your First Home?

That question depends more on your individual financial position than on where interest rates or property prices happen to be at any given moment. The most useful starting point is a clear picture of what you can borrow, what your total purchasing costs will be, and what loan options are available to you.

That's where we start with every first home buyer client — a practical, honest assessment of where you stand and what your next steps could look like.

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