In short: Buying your first home in Australia comes down to six things: save a deposit (ideally 20%, but as little as 5% with the right scheme), know how much you can borrow, get pre-approved, use the government grants you qualify for, budget for the real upfront costs, and choose a loan that suits you. This guide walks through each step and links to a deeper guide on every one.
Buying your first home is the biggest financial decision most Australians make, and the process has a lot of moving parts — deposits, borrowing power, grants, stamp duty, loan types. This is the map. Work through the steps below, and follow the linked guides where you want the detail.
Step 1 — Work out your deposit
Lenders generally want a 20% deposit to avoid Lenders Mortgage Insurance, but first home buyers can often get in with much less using government schemes. We cover the numbers in full in our guide to how much deposit you need to buy a first home.
Step 2 — Know your borrowing power
What you can borrow depends on your income, expenses and existing debts — not just your deposit. Lenders also test you at a higher ‘buffer’ rate. See how much you can borrow for a home loan for how it’s calculated and how to improve it.
Step 3 — Use the government help you qualify for
First home buyers in Australia may access the First Home Owner Grant, the First Home Guarantee, stamp duty concessions and the First Home Super Saver Scheme. Eligibility varies by state and changes over time — our guide to first home buyer grants and schemes breaks each one down.
Step 4 — Get pre-approved
Pre-approval tells you your budget and shows agents you’re serious — but it isn’t a guarantee and it expires. Read how home loan pre-approval works before you start making offers.
Step 5 — Budget for the real upfront costs
Your deposit isn’t the only cash you need. Stamp duty, conveyancing, inspections and LMI add up fast. We total it in the true cost of buying a first home.
Step 6 — Choose your loan
Fixed gives you certainty; variable gives you flexibility. There’s no universally right answer. Compare them in fixed vs variable home loans.
Step 7 — Buy, then settle
Once you’ve found a place, your offer is accepted and finance is unconditionally approved, you move to settlement — typically 30 to 90 days — when the property becomes yours. A broker and conveyancer handle the heavy lifting here.
For neutral, independent background at any step, the Australian Government’s Moneysmart buying a home guide is a good free reference.
From the first home buyer enquiries we see at Best Brokers Melbourne, one situation comes up again and again: buyers who have done the hard part of saving a deposit, but are not sure if they have saved “enough.” Many have around 10–15% saved and are looking at units, townhouses, or smaller homes across Melbourne, but they are unsure how much banks will actually lend them, whether they will need LMI, and what government support they may qualify for.
Talk to a broker before you commit
Every first home is different. A licensed mortgage broker can compare 50+ lenders, check which grants and schemes you qualify for, and tell you what you can realistically borrow — free, and with no obligation.
Frequently asked questions
How do I buy my first home in Australia?
Save a deposit, check your borrowing power, get pre-approved, apply for any grants you qualify for, make an offer, and settle. A mortgage broker can guide you through each step and compare lenders for you.
How much do I need to buy my first home?
It varies, but you’ll generally need a deposit (5–20% of the price), plus upfront costs like stamp duty, conveyancing and inspections. Government schemes can reduce the deposit needed.
Do first home buyers get government help?
Often yes — depending on eligibility, you may access the First Home Owner Grant, First Home Guarantee, stamp duty concessions and the First Home Super Saver Scheme. Rules vary by state.
Should I use a mortgage broker as a first home buyer?
A broker compares many lenders, checks which schemes apply to you, and handles the paperwork — usually at no cost to you, since they’re typically paid by the lender.
General information only — this article is not financial or credit advice and doesn’t account for your personal situation. Best Brokers Melbourne is a referral service, not a licensed credit provider; we connect you with a licensed mortgage broker. Grant amounts, thresholds and scheme rules change and vary by state — always confirm current details with the official source linked, or a licensed broker, before acting.