Getting a first home buyer loan is mostly about matching you to the right lender. Not the biggest bank, and not always the one with the lowest advertised rate. The right lender for your income, your deposit and the suburb you want to buy in.
FinAus is a family-owned mortgage broker serving Sydney’s west and south-west. We compare 50+ lenders for first home buyers across Penrith, Blacktown, Liverpool, Parramatta and Castle Hill, and our service costs you $0. You speak directly with Director Pankaj Angrish and his team, not a call centre.
What Is a First Home Buyer Loan?
There is no special product with that name. A first home buyer loan is a standard home loan set up around what matters on a first purchase: how much deposit you have, whether a government scheme applies, and where you want your finances to be in five or ten years.
You will see it called a first home loan, a first time home buyer loan or a 1st home loan. Same thing: a home loan for someone buying their first property.
What sets first home buyers apart is the help around the loan. Grants, stamp duty concessions and guarantee schemes can cut your upfront costs or the deposit you need. They sit outside the loan itself, and each has its own eligibility rules. Check them early, before you fall for a particular property.
Get Your Free Strategy Session
How Much Can You Borrow as a First Home Buyer?
Your borrowing power is what a lender will lend after testing whether you could still afford repayments if rates rose. Each lender runs its own version of that test. Two lenders can look at the same application and arrive at different numbers. Several things move that figure.
Income type
Full-time pay is simple. Casual, contract, overtime and bonus income are treated differently from lender to lender.
Credit card limits
Lenders generally count the limit, not the balance. A card you never use can still reduce what you can borrow.
HECS/HELP debt
It reduces the income available for repayments, and by how much depends on the lender.
Living expenses
Lenders read your bank statements, so recent spending counts.
Other debts
Car loans, personal loans and buy now, pay later accounts all go into the assessment.
Many buyers assume the bank they have always used will give the best result. Sometimes it does. Often a different lender suits the same income better, and it is much easier to find that out before you apply than after. Reducing a card limit a few months ahead can change the outcome, which is why we start with a conversation, not an application.
Deposit Options for a First Home Buyer Loan
You do not always need 20% down. You do need to know what a smaller deposit costs. Each pathway below is a different way to structure a first home buyer loan, and the right one depends on your savings, income and timing.
| Pathway | Who it can suit | What to weigh up |
|---|---|---|
| 20% deposit | Buyers with strong savings or family help | Usually avoids LMI and may widen lender choice. Takes longer to save. |
| 10–15% deposit | Buyers with moderate savings | Faster entry. LMI is likely, and its cost varies by lender. |
| 5% deposit via the First Home Guarantee | Eligible buyers within the scheme’s income and price limits | Smaller deposit and no LMI. Places and price caps apply. |
| Guarantor loan | Buyers whose family will offer their property as security | Can reduce or remove the deposit and LMI. The guarantor takes on real risk. |
| Professional package | Some doctors, lawyers, accountants and similar occupations | May allow a low deposit and LMI waiver. Depends on the lender and occupation. |
| Construction loan | Buyers building new | Progress payments instead of one lump sum. Needs a fixed-price building contract. |
We can model 5%, 10% and 20% side by side, so you see what waiting costs against what buying sooner costs. Looking at a build? See our construction loans page. If family can help, read about Guarantor Home Loans.
LMI for First Home Buyers: When It Applies and How to Reduce It
Lenders mortgage insurance (LMI) protects the lender, not you, if a loan with a smaller deposit goes wrong. It generally applies when your deposit is below 20% of the property’s value. The cost depends on the lender, the loan size and your loan-to-value ratio (LVR), which is your loan as a percentage of the property’s value.
Ways buyers reduce or avoid it
- Save a larger deposit.
- Use a government scheme such as the First Home Guarantee, if eligible.
- Add a guarantor.
- Check whether a professional package applies to your occupation.
- Compare LMI pricing between lenders, because it is not the same everywhere.
We compare LMI alongside borrowing power so a premium does not surprise you.
First Home Buyer Grants and Government Schemes
Grants and schemes change often. Eligibility depends on your income, the property price, whether the home is new or existing, and the state you buy in. Treat this as an overview and confirm current rules with the official source before you rely on them. We go through eligibility with you in your first session.
First Home Owner Grant in NSW
A one-off payment for eligible buyers of new homes, including some new builds. It does not generally apply to established homes. The grant amount and the property value and build cost caps are set by the NSW Government, so check the official NSW rules. People search for it as the first home owners grant, first home buyer grant or 1st home owners grant, so make sure you are reading the official source.
First Home Buyer Stamp Duty in NSW
Stamp duty is a state tax paid when you buy property. In NSW, first home buyers may pay no stamp duty or a reduced amount under the First Home Buyer Assistance Scheme, depending on the purchase price. For many buyers it is one of the biggest upfront costs, so the concession can make a real difference. Get a quick estimate with our Stamp Duty Calculator and confirm the figure with your conveyancer.
First Home Guarantee (Home Guarantee Scheme)
Run by Housing Australia. The government guarantees part of your loan so eligible buyers can purchase with a smaller deposit and without paying LMI. You apply through a participating lender, not directly with the government. That is where a broker helps. Not every lender takes part, and their policies differ. Places are limited each year, so timing matters.
Regional First Home Buyer Guarantee
A similar guarantee exists for eligible buyers in regional areas. Whether a suburb qualifies depends on the postcode, so check before you assume a Western Sydney address is in or out.
Family Home Guarantee
This scheme is for eligible single parents and single legal guardians with dependants. If that is you, ask us early. The rules are specific.
First Home Super Saver Scheme
This scheme lets eligible buyers save towards a deposit using voluntary super contributions. Your accountant is the right person to confirm the tax side. We can work with them to see whether it fits your timeline.
Why Use a Mortgage Broker as a First Home Buyer?
Walk into a bank, and you see that bank’s products. A mortgage broker for first home buyers compares policies across many lenders and recommends one that fits your situation. Brokers must act in your best interests when giving credit assistance. That matters most when two loans look the same on paper but are not.
People often search for a first home mortgage broker or a first home loan broker when what they want is someone to explain the numbers plainly. That is how we work, and it is the same for anyone chasing a first time buyer mortgage or comparing mortgage loans for first time home buyers.
Lenders typically pay brokers a commission once a loan settles. We will explain any fees or charges the lender applies before you commit.
Who you deal with: Pankaj Angrish
Pankaj founded FinAus after 15+ years in banking and finance, including senior roles at Commonwealth Bank at Martin Place, Parramatta, Castle Hill and Penrith. He worked as a Senior Relationship Manager in CBA Premier Banking, alongside specialists from CommSec, CommInsure, Private Banking and Corporate Banking.
He has been recognised five times as a CBA Diamond Lender and three years in a row as an Elite Broker.
How Our First Home Loan Process Works
Seven clear steps, from your first conversation to a loan that stays competitive after settlement.
Strategy session
By phone, video or in person. We cover your goals, deposit, income, debts and timeline.
Lender comparison
We compare borrowing power and policy across lenders and shortlist the ones that fit.
Document checklist
You get a clear list, so the application goes in complete.
Pre-approval
We lodge with the chosen lender. Pre-approval is conditional, but it gives you a price range to shop in.
Property support
We check the lender’s postcode policy and property suitability before you sign a contract.
Formal approval and settlement
We manage valuation, loan documents and conveyancer contact through to settlement.
Reviews
We check your rate and structure around the 12-month mark and after, so you are not left on a loan that has drifted.
This is the same process for any first time home buyer mortgage, whatever the price range.
What Slows Down First Home Loan Applications
What brokers typically see- A gifted deposit with no clear paper trail.
- Savings that are hard to show as built up over time. Lender rules on this differ.
- Variable income, such as casual shifts, contract work or self-employed returns.
- Large or unexplained transfers on bank statements.
- A valuation that comes in below the contract price.
- A change in job, income or debts between pre-approval and formal approval.
A lender can still decline at formal approval if the valuation falls short or your circumstances change. That is why we flag the risks early and keep your file consistent from pre-approval to settlement.
Self-employed? See Self-Employed Home Loans.
Loan Features Worth Understanding
These features matter for every first home buyer home loan, because the right mix depends on how you spend and save. They affect the cost of first time home buyer loans over many years.
| Feature | What it does |
|---|---|
| Offset account | Savings in a linked account reduce the interest charged. |
| Redraw | Lets you access extra repayments you have made. |
| Fixed rate | Locks your rate for a set period for certainty. |
| Variable rate | Moves with the market and the lender. Often more flexible for extra repayments. |
| Split loan | Part fixed, part variable. |
| Extra repayments | Cut interest and shorten the term. Check for limits on fixed loans. |
| Portability | May let you move the loan to a new property. Not offered by every lender. |
General Examples (Not Advice)
Every first home buyer arrives with a different situation. These are the kinds of scenarios we work through regularly.
Young couple with HECS
Both have study debts and a 10% deposit. The question is whether to pay LMI now or save longer. We compare the cost of each path and the lenders that treat HECS more favourably.
Single parent
Limited savings. We check eligibility for the Family Home Guarantee and which lenders participate.
Gifted deposit
Parents are helping, possibly from overseas. We look at which lenders accept gifts and what documents they want.
Self-employed buyer
Two years of returns with income that moves. We look for lenders whose income assessment suits the business.
These are general examples only, and every application is different.
What Clients Say About Working With Us
Reviews taken from our verified Google profile.
“Pankaj from FinAus was knowledgeable, professional, and fought for our settlement. We are glad he is on our side and highly recommend him.”
“Great service and very good communication. A big thanks to Mr. Pankaj Angrish for going above and beyond to find me the best deal on my home loan.”
“I have relied on Pankaj’s advice now for over 7 years. He is always responsive and isn’t afraid to work hard to put everything together quickly to secure the right loan, even when it isn’t straight forward.”
First Home Buyers Across Sydney’s West and South-West
Local knowledge helps because lender policy can vary by postcode. If you are searching for a 1st time buyers home loan near you, see our Areas We Serve page.
Office: 139 Cadda Ridge Dr, Caddens NSW 2747
Phone: 0432 086 457
Hindi and Punjabi Support
We also work in Hindi and Punjabi. Visit our Hindi, Punjabi and Indian Mortgage Broker Sydney page for first home buyers who prefer to talk it through in their own language.
Frequently Asked Questions
The most common questions we hear from Sydney first home buyers, answered plainly.
How much deposit do I need for a first home buyer loan in Sydney?
It depends on the pathway. Many lenders want at least 5% of the price saved, plus money for costs like stamp duty and legal fees. A 20% deposit usually avoids LMI. Smaller deposits may trigger it unless a scheme or guarantor applies. We can model each option against your numbers.
Can I buy with a 5% deposit and no LMI?
Possibly. The First Home Guarantee lets eligible buyers purchase with a 5% deposit without paying LMI. You must meet the scheme’s criteria, buy within the price cap for your area and apply through a participating lender. Places are limited, so check availability early.
What first home buyer grants can I get in NSW?
The main NSW grant is the First Home Owner Grant for new homes. Established homes generally do not qualify for the grant but may get stamp duty relief. Federal options include the Home Guarantee Scheme and the First Home Super Saver Scheme. Confirm each one with the official source.
Do first home buyers pay stamp duty in NSW?
Some do, some do not. Under the First Home Buyer Assistance Scheme, eligible buyers may pay no stamp duty or a reduced amount, depending on the property price. Above the concession limits, standard stamp duty applies. Use a calculator for an estimate and confirm with Revenue NSW or your conveyancer.
Does a mortgage broker cost first home buyers anything?
Our service costs you $0. Lenders generally pay brokers a commission when a loan settles. Brokers must act in your best interests, and we explain any fees or charges the lender applies to your loan before you commit.
Will my HECS debt affect my borrowing power?
Usually, yes. A HECS/HELP debt reduces the income lenders count as available for repayments, and the effect differs between lenders. It does not stop you buying. Comparing how several lenders treat it, along with other debts such as credit card limits, shows where your borrowing power really stands.
Can I use a gifted deposit from family?
Often yes, but lenders have rules. Many want written proof that the money is a genuine gift and not a loan you must repay. Some also want to see your own savings history. Policies on overseas gifts differ, so tell us early and we will check which lenders suit.
How long does first home loan pre-approval take?
It varies by lender and by how complete your documents are. A clean application with ID, income and bank statements ready moves faster. Pre-approval is conditional, not a guarantee. A lender can still decline if the valuation comes in low or your situation changes.
Start Your First Home Buyer Loan With a Free Strategy Session
Your first home is the base for every property decision that follows. Getting the loan, lender and structure right at the start can save real money and stress later. If you plan to buy an investment property down the track, we can set things up with that in mind, see Investment Property Loans.
In your first session you get:
- A clear view of your borrowing power.
- A check of the schemes you may be eligible for.
- A comparison of your deposit options.
- A shortlist of lenders that suit your situation.
No cost, no obligation, no pressure.