8 Tips for First-Time Home Buyers

Disclaimer: This blog post is intended for informational purposes only and should not be considered financial or legal advice. Always consult with a financial professional or legal expert for personalized guidance.

Buying your first home is an exciting milestone, but it can also be a complex and daunting process. As a mortgage broker with years of experience in the Australian housing market, I’ve seen firsthand the challenges that first home buyers face.

In simple terms, most Australians take around three and a half years to save enough for a down payment on their first house.

If you’re planning or close to investing in your dream home, here are some factors you should know:

1. Understand Your Borrowing Capacity

  • Assess Your Income and Expenses: Determine your monthly income and expenses to understand how much you can afford to borrow.
  • Check Your Credit Score: A higher credit score may lead to better mortgage rates.
  • Consult a Mortgage Broker: We can help you understand your borrowing capacity and find the best loan for your needs.

2. Save for a Deposit

  • Start Early: The more you save, the less you’ll need to borrow.
  • Consider the First Home Super Saver Scheme (FHSSS): This Australian government initiative allows you to save money for your first home inside your superannuation fund.
  • Avoid Lenders Mortgage Insurance (LMI): By saving at least 20% of the property’s value, you can avoid paying LMI.

3. Explore Government Grants and Concessions

  • First Home Owner Grant (FHOG): Depending on the state, you may be eligible for a grant towards your first home.
  • Stamp Duty Concessions: Some states offer concessions on stamp duty for first home buyers.

4. Choose the Right Home Loan

  • Fixed vs. Variable Rates: Consider your financial stability and risk tolerance when choosing between these options.
  • Look for Flexible Features: Offset accounts and extra repayments can provide flexibility and save you money in the long run.
  • Work with a Mortgage Broker: We can help you compare different loan products and negotiate with lenders on your behalf.

5. Consider the Total Cost of Homeownership

  • Include Additional Costs: Consider stamp duty, legal fees, inspection costs, and ongoing maintenance.
  • Plan for Interest Rate Changes: Be prepared for potential interest rate fluctuations that may affect your monthly repayments.

6. Think Long-Term

  • Consider Future Lifestyle Changes: Think about your long-term goals and how your home will fit into them.
  • Invest in a Property Inspection: Knowing the condition of the property can save you money and headaches down the road.

7. Build an Emergency Fund

  • Prepare for Unexpected Expenses: Having a financial cushion can help you handle unexpected costs without jeopardizing your mortgage payments.

8. Stay Informed

  • Keep Up with Market Trends: Understanding the local housing market can help you make informed decisions.
  • Stay in Touch with Your Mortgage Broker: We’re here to assist you with any questions or concerns throughout the home buying process.


Buying your first home in Australia is a significant financial commitment. By understanding your borrowing capacity, saving for a deposit, exploring government incentives, choosing the right home loan, considering the total cost of homeownership, thinking long-term, building an emergency fund, and staying informed, you can navigate this process with confidence.

As a mortgage broker, I’m here to guide you every step of the way. Feel free to reach out with any questions or to schedule a consultation. Your dream home is within reach, and these tips can help you achieve it.

Got any questions? Need further advice?

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