A Step-by-Step Guide for First Home Buyers in Australia

Written By Annette Raad

Buying your first home is an exciting milestone, but it can also feel overwhelming with so many options, lenders, and steps involved. The good news? With the right guidance, planning, and loan structure, you can make the process smoother — and avoid common mistakes that first-time buyers often make.

In this article, we’ll walk you through the essentials of buying your first home in Australia and how a mortgage broker can help you every step of the way.

1. Understand How Much You Can Borrow

Before you start house hunting, it’s important to know your borrowing capacity. Lenders calculate this based on your income, expenses, savings, and any existing debts.

Online calculators are a starting point, but they don’t always give you the full picture. Speaking with a broker means you’ll get an accurate estimate tailored to your situation.

2. Save for a Deposit

Most lenders require a minimum deposit of 5–10% of the property value. However, the more you save, the stronger your application.

Keep in mind that if your deposit is less than 20%, you may need to pay Lenders Mortgage Insurance (LMI) — though some government schemes can help you avoid this.

3. Explore First Home Buyer Grants and Schemes

As a first home buyer in Australia, you may be eligible for:

These can save you tens of thousands of dollars and help you get into the market sooner.

4. Get Pre-Approval

A loan pre-approval gives you a clear budget and shows sellers you’re serious. It’s not a guarantee, but it’s a big confidence boost when making offers.

5. Choose the Right Home Loan

With hundreds of lenders and loan products available, finding the right loan can be overwhelming. This is where a mortgage broker adds value — comparing different options and negotiating with lenders on your behalf to secure a competitive rate and flexible features.

6. Plan for More Than Just the Deposit

Don’t forget about other costs such as:

  • Stamp Duty (unless exempt)

  • Legal/conveyancing fees

  • Building and pest inspections

  • Moving costs and setup expenses

Having a buffer for these ensures you’re not stretched too thin once you’ve moved in.

7. Work With a Broker You Trust

Buying your first home is a big step, and it’s normal to feel nervous. A mortgage broker guides you through the process, explains your options in plain language, and helps you avoid pitfalls.

At Radian Home Loans, we specialise in helping first home buyers make confident, informed decisions. We’ll guide you through everything from saving a deposit and accessing grants, to securing a loan and getting the keys to your first home.

Final Thoughts

Buying your first home is an exciting journey, and with the right preparation, it doesn’t have to be stressful. By understanding your borrowing capacity, taking advantage of first home buyer schemes, and working with a trusted mortgage broker, you’ll be one step closer to turning the dream of homeownership into reality.

✨ Ready to take the first step? Get in touch with us at Radian Home Loans — your journey home starts here.

Annette Raad
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