Around three in ten of the clients we work with are buying their first home, and the questions are remarkably consistent: how much do I actually need saved, when should I speak to a broker, and how long does this realistically take? Here's a straightforward answer to each.
Start with your full financial picture, not just the deposit
It's natural to focus on the deposit, but lenders look at your whole position: income, existing debts (including credit cards and buy-now-pay-later limits, whether you use them or not), living expenses, and your credit history. Getting a clear view of this early — ideally months before you plan to buy — gives you time to address anything that might affect borrowing capacity.
Understand what schemes and concessions may apply to you
Various federal and state government schemes exist to support first home buyers, including guarantee schemes that can reduce the deposit needed, and stamp duty concessions in some states and territories. Eligibility depends on factors like your income, the property price and its location, and the rules change from time to time. Rather than relying on what a friend or family member used a few years ago, it's worth checking current eligibility with a broker.
Property price caps and income thresholds for these schemes are reviewed periodically and do move — what someone qualified for last year isn't a safe assumption for this year. Confirm current figures directly before you rule yourself in or out.
Get pre-approved before you fall in love with a property
Pre-approval gives you an indication of how much a lender may be willing to lend, based on your financial situation, before you've found a specific property. It's not a guarantee of final approval — that still depends on the property itself and a full assessment — but it lets you shop with a realistic budget in mind, which avoids the disappointment of finding the right home and then discovering it's out of reach.
Build your team early
A broker, a conveyancer or solicitor, and (if you're buying an established home) a building and pest inspector are the core team for most first home buyers. Having these relationships in place before you're under contract deadline pressure makes the whole process calmer.
What settlement actually looks like
Once your offer is accepted and finance is formally approved, expect a settlement period of roughly four to six weeks, though this varies by contract and lender. During this time your broker and conveyancer coordinate document signing, final loan documentation, and the handover of funds — you shouldn't need to chase this yourself if you have the right people managing it.
Chris Brown
Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →
Frequently asked
How much deposit do I need to buy my first home?
It varies by lender and loan type. Some first home buyers can borrow with a smaller deposit using government schemes or lender's mortgage insurance — a broker can outline what applies to your circumstances.
What is loan pre-approval and why does it matter?
It's an indication from a lender of how much they may be willing to lend you, based on your financial situation, before you've found a property. It helps you shop within a realistic budget, though it isn't a guarantee of final approval.
Are there government schemes to help first home buyers?
Various federal and state schemes exist, such as guarantee schemes and stamp duty concessions, and eligibility depends on factors like income, property price and location. A broker can confirm which schemes you may qualify for.