first home buyers

Buying your first home is an exciting milestone, but it can also feel overwhelming. At Mortgage Edge, we help first home buyers navigate the process with expert guidance and access to a range of loan options, government schemes, and deposit solutions.

How Much Deposit Do You Need?

Most lenders require a 20% deposit to avoid Lenders Mortgage Insurance (LMI), but there are options to buy with as little as 5% or even 2% in some cases using relevant government schemes.

However, if you don't qualify for any of the government schemes, this often means paying Lenders Mortgage Insurance (LMI), which protects the lender in case you default on the loan. 

Some government schemes can help you avoid LMI with a 5% deposit.

First Home Buyer Government Schemes

There are several government grants and schemes available to help first home buyers enter the market sooner.

First Home Guarantee (FHBG)

• Allows first home buyers to purchase a home with as little as 5% deposit without paying LMI.
• Available for new and existing homes.
• Limited places are available each financial year.

First Home Owner Grant (FHOG)

• A one-off grant for eligible first home buyers purchasing a newly built home or substantially renovated property.
• Grant amount varies by state or territory.

Stamp Duty Concessions

• Many states offer reduced or waived stamp duty for first home buyers purchasing under a certain price threshold.
• Eligibility and price limits vary by location.

Family Home Guarantee (FHG) for Single Parents

• Allows eligible single parents to buy a home with as little as 2% deposit, without paying LMI.
• Available for both first home buyers and previous homeowners who no longer own property.

Regional First Home Buyer Guarantee (RFHBG)

• Helps eligible first home buyers purchase a home in regional areas with a 5% deposit and no LMI.

Using a Guarantor to Buy Your First Home

If you have a family member willing to help, you may be able to use a guarantor loan. This means a parent or close relative offers equity in their property as security for your loan, allowing you to:

• Buy with a smaller or no deposit.
• Avoid Lenders Mortgage Insurance (LMI).
• Potentially borrow up to 100% of the property value.

Guarantor loans come with responsibilities, so it’s important for both you and your guarantor to understand the risks.

First Home Buyer Loan Options

At Mortgage Edge, we work with a range of lenders to find the right loan for you. 

Some options include:

Variable Rate Loans

• Interest rates fluctuate with the market.
• Can offer more flexibility in repayments.
• Often come with features like offset accounts and extra repayments.

Fixed Rate Loans

• Locked-in interest rate for a set period (1-5 years).
• Provides stability in repayments.
• Less flexible than variable loans.

Split Loans

• A mix of both fixed and variable rates.
• Allows you to enjoy the stability of a fixed loan while still having flexibility with a variable portion.

The First Home Buyer Process

1. Assess Your Budget & Borrowing Power – Work out how much you can afford and what lenders will lend you.
2. Save Your Deposit – Look at your savings and explore government schemes or guarantor options.
3. Get Pre-Approval – A lender confirms how much they’re willing to lend you.
4. Find Your Home – Search for a property within your budget.
5. Apply for Your Loan – Submit your application and required documents.
6. Final Approval & Settlement – The lender approves your loan, and settlement is completed.

Start Your Home Buying Journey Today

If you’re ready to take the first step towards home ownership, our expert mortgage brokers can help. We’ll guide you through the process, explain your options, and help you secure the best loan for your situation.