First Home Buyers

Buying your first home is one of the most significant financial decisions you will make. Natloans' mortgage specialists work with first-home buyers across Australia, helping you understand your loan options, identify government incentives you may be eligible for, and move through the purchase process with confidence. Natloans compares home loans across a panel of more than 50 banks and non-bank lenders to find options that suit your circumstances.

Is Now a Good Time to Buy Your First Home?

Australia's property market continues to offer entry points for first-time buyers, particularly when government incentive programs are factored in. Purchasing your first home means you are no longer paying rent without building equity — principal repayments reduce the loan balance; interest payments are a borrowing cost. Property values can rise or fall. Several federal and state government programs exist specifically to reduce the upfront costs of buying, making homeownership more achievable for eligible first-time buyers.

Whether now is the right time for you depends on your savings, income stability, borrowing capacity and the property market in your target area. A free consultation with a Natloans broker can help you assess your readiness before you commit.

Government Incentives for First-Time Home Buyers in Australia

Several federal and state government programs are designed to reduce the cost of entering the property market for the first time. The Natloans source describes these types of support. Its legacy deposit-scheme name and limits have been updated using the Australian Government’s scheme guidance checked on 15 October 2026. Eligibility criteria, grant amounts, property price caps and program availability vary by state and change over time. Confirm current rules and your personal eligibility with the relevant state government authority or through a Natloans broker before relying on any program.

First-home buyer support: confirm the current criteria before applying
Program How It May Help Key Condition to Confirm
First Home Owner Grant (FHOG) A one-time payment for eligible buyers purchasing a new home Grant amount and eligibility vary by state; confirm with your state revenue office
Australian Government 5% Deposit Scheme May allow eligible buyers to purchase with as little as a 5% deposit without paying lender's mortgage insurance (LMI) No income caps or limit on eligible places; property price caps and other eligibility requirements apply
Stamp Duty Concessions and Exemptions Some states offer reduced or waived stamp duty for first-home buyers, lowering upfront costs Rules and thresholds differ by state and property value; confirm locally
First Home Super Saver Scheme (FHSSS) Allows voluntary super contributions to be withdrawn for a home deposit, benefiting from concessional tax rates Withdrawal limits and conditions apply; confirm with the ATO or a financial adviser

Natloans can help you identify which programs you may be eligible for and guide you through the application process alongside your loan application.

How Much Deposit Do You Need?

As a general guide, a deposit of between 10% and 20% of the property's purchase price is considered ideal. A deposit below 20% typically triggers lender's mortgage insurance (LMI), which adds to your upfront costs. However, government programs such as the Australian Government 5% Deposit Scheme may allow eligible buyers to enter the market with as little as a 5% deposit without paying LMI, subject to eligibility, property price caps and lender assessment.

The right deposit target for you will depend on property prices in your preferred area, your savings capacity, and which assistance programs you qualify for. A Natloans broker can help you work through the numbers.

Budgeting and Saving for Your Home Deposit

Saving a sufficient deposit is often the biggest challenge for first-time buyers. The Natloans website suggests the following practical approaches:

  • Set a savings target: Determine the deposit amount you need based on property prices in your preferred area, then work backwards to set a realistic timeline.
  • Create a savings plan: Allocate a fixed portion of your income to a dedicated savings account. Automating transfers to a high-interest savings account can help maintain consistency.
  • Consider low-risk savings vehicles: High-interest savings accounts or term deposits can help your deposit grow steadily without significant risk.
  • Use the FHSSS: If eligible, making voluntary contributions to your superannuation and later withdrawing them under the First Home Super Saver Scheme may provide a tax-effective way to grow your deposit faster. Confirm current limits and rules with the ATO or a financial adviser.

Where your financial situation is complex, consulting a qualified financial adviser alongside a mortgage broker can help you build a plan that covers both saving and borrowing.

Costs to Budget for Beyond the Purchase Price

A common mistake among first-home buyers is underestimating the total cost of purchasing. In addition to your deposit, you should budget for costs that may include:

  • Stamp duty (unless you qualify for a concession or exemption in your state)
  • Legal and conveyancing fees
  • Building and pest inspection fees
  • Loan application or establishment fees (varies by lender)
  • Home and contents insurance
  • Ongoing maintenance costs once you own the property
  • Moving costs

The amounts will vary depending on the property, its location and the lender you choose. Natloans recommends factoring all of these into your budget from the outset to avoid surprises at settlement.

Choosing the Right Property as a First-Home Buyer

The property you choose affects both your lifestyle and the long-term value of your investment. The Natloans website identifies several factors worth considering:

Location

Choose a location that suits your daily life — proximity to work, family, schools and amenities can also support property value over time.

Property Type

Apartments, townhouses and houses each come with different price ranges, maintenance responsibilities and growth profiles. Consider which type fits your budget and lifestyle now, and where you expect to be in five to ten years.

Growth Potential

Research historical price trends and planned infrastructure in the suburb. While past performance does not guarantee future results, understanding the local market can inform a more considered purchase decision.

Condition and Features

Factor in any repairs or upgrades a property may require. A lower purchase price can be offset by significant renovation costs, so a professional building inspection is strongly recommended before you commit.

Home Loan Options for First-Time Buyers

Natloans explains several common loan structures available to first-home buyers. The right choice depends on your financial goals, risk tolerance and circumstances. A Natloans broker can discuss which structure suits your situation after reviewing your finances.

Common Home Loan Structures for First-Home Buyers
Loan Type How It Works Potential Benefit Consideration
Fixed-Rate Home Loan Interest rate is locked in for an agreed term Predictable repayments make budgeting easier Less flexibility if rates fall; break costs may apply if you exit early
Variable-Rate Home Loan Interest rate moves with the lender's rate, which can reflect market changes Repayments may decrease if rates fall; often allows extra repayments and redraw Repayments can increase if rates rise
Split Loan Part of the loan is fixed, part is variable Combines stability with some flexibility More complex to manage; features depend on the lender
Interest-Only Loan You pay only the interest for an initial period; principal repayments begin later Lower initial repayments Primarily used by investors; the principal does not reduce during the interest-only period

Rates, features and availability differ across lenders. Any rate you see advertised must be confirmed as current with the lender or through your broker. Natloans compares options across its panel of more than 50 banks and non-bank lenders.

The Importance of Loan Pre-Approval

Loan pre-approval is a lender's preliminary assessment of how much you may be able to borrow, based on your income, expenses, assets and liabilities at the time of assessment. It gives you a working budget before you begin your property search and can strengthen your position when making an offer on a property.

Pre-approval is not a guarantee of final loan approval. Final approval is subject to the lender's assessment of the specific property, your financial position at the time of formal application, and the lender's credit criteria. Natloans can assist with the pre-approval process so you are better prepared to act when you find the right property.

Steps in the First-Home Buying Process

The Natloans website outlines the following general process for buying your first home. Individual steps may vary depending on your state, lender and property type.

  1. Set Your Budget

    Use an online repayment calculator or speak with a Natloans broker to understand how much you can borrow and afford to repay. Include upfront costs such as stamp duty, legal fees and inspection costs in your budget.

  2. Start Your Property Search

    Use reputable real estate listing sites and attend open inspections. A real estate agent can help you navigate the market, particularly if you are unfamiliar with the area.

  3. Make an Offer

    When you find a suitable property, submit a formal offer. Be prepared for negotiation on price and conditions.

  4. Conduct a Property Inspection

    Engage a qualified building and pest inspector before committing. Inspection reports can reveal issues that may affect the property's value or require costly repairs, and can provide grounds to renegotiate.

  5. Finalise Your Loan and Settlement

    Once your offer is accepted, work with your lender (or through Natloans) to complete the formal loan application. On settlement day, the property legally transfers to you and you receive the keys.

How a Mortgage Broker Can Help First-Home Buyers

A mortgage broker acts as an intermediary between you and multiple lenders. Rather than approaching one bank directly, a broker can compare loan products across a wider panel, explain the differences in plain language, and help you prepare a stronger application.

For first-home buyers specifically, a broker can:

  • Help you understand which government incentive programs you may be eligible for
  • Compare loan structures (fixed, variable, split) against your goals and budget
  • Assist with pre-approval so you can search for property with confidence
  • Clarify loan terms, fees and conditions that can be easy to overlook
  • Manage communication with lenders throughout the application and approval process

Natloans offers a free initial consultation. You can book online or contact the team directly.

Common Mistakes First-Home Buyers Should Avoid

  • Not researching government assistance: Missing grants or concessions you are eligible for can mean paying more than necessary upfront.
  • Underestimating total costs: Stamp duty, legal fees, insurance and maintenance add substantially to the purchase price. Budget for these from the start.
  • Skipping the building inspection: Structural or maintenance problems that are not identified before purchase can result in significant unplanned costs.
  • Overlooking the fine print: Loan terms, fees and conditions vary. Read all documentation carefully and seek advice if any clause is unclear.
  • Treating program descriptions as confirmed eligibility: A general description of a grant or scheme on a website is not confirmation that you qualify. Always verify with the relevant government authority.

What Natloans Customers Say

The following summarise public reviews displayed in the Natloans website’s Google/Trustindex widget at retrieval in October 2026. These reflect individual experiences and are not a guarantee of the same outcome for every customer.

The original page displayed an Excellent rating and 925 reviews in its Google/Trustindex widget when retrieved in October 2026. Review counts and ratings change over time; see the Trustindex review page for the current position.

Frequently Asked Questions

What steps does Natloans outline for first-home buyers?

Natloans outlines five main steps: setting a budget (using a calculator or broker consultation), searching for a property, making an offer, conducting a professional inspection, and finalising the loan and settlement. Preparing for pre-approval and comparing loan types are also discussed as important parts of the process. Source: Natloans first-home buyers page.

What is the First Home Owner Grant (FHOG)?

The FHOG is a one-time payment available to eligible first-time buyers purchasing a new home. The grant amount and the eligibility criteria vary by state. You should apply through your lender or directly through the relevant state government department after confirming you meet the current requirements. Source: Natloans first-home buyers page.

How much deposit do I need to buy my first home?

As a general guide, a deposit of 10–20% of the property's value is considered ideal. Government programs such as the Australian Government 5% Deposit Scheme may allow eligible buyers to purchase with as little as a 5% deposit without paying lender's mortgage insurance. Eligibility conditions, property price caps and lender assessment apply. Source: Natloans first-home buyers page.

Can I use my superannuation to buy a house?

The First Home Super Saver Scheme (FHSSS) allows you to make voluntary contributions to your super fund and later withdraw them (subject to limits and conditions) to use as a home deposit, benefiting from concessional tax treatment. Confirm current withdrawal limits and eligibility rules with the ATO or a financial adviser before relying on this scheme. Source: Natloans first-home buyers page.

What is loan pre-approval?

Loan pre-approval is a lender's preliminary assessment of your borrowing capacity based on your financial position at the time of application. It gives you a working budget and can help you act quickly when you find a suitable property. Pre-approval is not a guarantee of final loan approval, which remains subject to the lender's assessment of the specific property and your financial circumstances at the time of formal application. Source: Natloans first-home buyers page.

What costs should I budget for beyond the purchase price?

Beyond the deposit and purchase price, you should budget for stamp duty (unless you qualify for a concession), legal and conveyancing fees, building and pest inspection fees, loan establishment fees (which vary by lender), home and contents insurance, and ongoing maintenance. Underestimating these costs is a common mistake that can create financial pressure at settlement. Source: Natloans first-home buyers page.

Should I use a fixed or variable home loan as a first-time buyer?

Fixed loans offer repayment stability, making budgeting more predictable. Variable loans offer more flexibility and the potential for lower repayments if rates decrease, but repayments can also rise. A split loan combines both. The best structure depends on your goals, financial position and risk tolerance. A Natloans broker can discuss the trade-offs in the context of your specific situation. Source: Natloans first-home buyers page.

Do I need a buyer's agent?

A buyer's agent is not required, but can be helpful — particularly if you are unfamiliar with the local market or want assistance with property search and negotiation. Whether the cost is worthwhile depends on your circumstances and the complexity of your search. Source: Natloans first-home buyers page.

How do I apply for the First Homeowner Grant?

Check the eligibility requirements for your state first, as the amount and conditions differ. Applications are generally submitted through your lender or directly through the relevant state government department. Natloans can assist with this process alongside your loan application. Source: Natloans first-home buyers page.

Can I rely on a grant amount or program name I see on a website?

Program names, grant amounts, eligibility thresholds and availability change over time and differ by state. A general description on any website — including this page — is not confirmation that you qualify or that the amounts shown are current. Always verify current program details with the relevant state government authority or the ATO before making financial decisions based on a specific grant or scheme. Source: Natloans first-home buyers page.

How does Natloans compare lenders for first-home buyers?

Natloans compares home loan options across a panel of more than 50 banks and non-bank lenders. A broker reviews your financial situation and goals, then identifies loan products that may suit your needs. The source advertises a free initial consultation. Confirm any other fees before proceeding. Source: Natloans first-home buyers page.

What is the minimum deposit for a first home in Australia?

The minimum deposit typically required is 5–20% of the property's purchase price, depending on the lender and loan product. A deposit below 20% generally attracts lender's mortgage insurance unless an eligible government guarantee scheme applies. Confirm minimum deposit requirements with your chosen lender or through a Natloans broker. Source: Natloans first-home buyers page.

Ready to Take the Next Step?

Natloans' mortgage brokers are available to guide you through every stage of buying your first home — from understanding your borrowing capacity and identifying government incentives to securing pre-approval and managing the loan process through to settlement.

  • Apply for a home loan — begin your formal application online.
  • Use the repayment calculator on the Natloans website to see estimated weekly, fortnightly or monthly repayments based on your loan amount and term.
  • Contact Natloans or book a free consultation to speak with a mortgage specialist about your situation.

Natloans service information comes from its public website retrieved in October 2026; the federal deposit-scheme update is linked below. Government programs, eligibility thresholds and interest rates are subject to change. Confirm current details with the relevant authority or through a Natloans broker before making financial decisions.

Source Reference

Content on this page is drawn from the Natloans First Home Buyers page (published June 2025, last modified October 2026, retrieved October 2026).

Government scheme update

The Australian Government 5% Deposit Scheme replaced the Home Guarantee Scheme name from 1 October 2025. Eligible first-home buyers may purchase with a minimum 5% deposit without LMI. There are no income caps or limits on eligible places. Property price caps, eligibility and lender assessment still apply; approval is not automatic. Apply through a participating lender. Check the government’s scheme FAQs for the full current requirements. Checked 15 October 2026.

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