8 Tips for Buying Your First Home

Buying your first home is an exciting milestone – but it can also be a maze of paperwork, jargon, and unexpected costs. As mortgage brokers, we help guide first home buyers through the process every day. Here are our top tips to help you navigate your journey with confidence:

1. Get Pre-Approval Before You Start House Hunting

Pre-Approval means that a lender has provided you, on condition, with access to borrow the required funds for a home, before you’ve selected an actual property. This can be a huge boost when it comes to negotiating with sellers and attending auctions.

Before you fall in love with a property, get a loan pre-approval from a lender. It tells you how much you can borrow and shows sellers you’re a serious buyer.

Don’t confuse pre-approval with unconditional approval – your loan still needs final sign-off once you’ve found that dream home.

2.Know All The Costs – Not Just the Deposit 

Your deposit is only part of the equation. First home buyers should also budget for:

• Stamp duty (check if you’re eligible for exemptions or concessions)
• Legal and conveyancing fees
• Building and pest inspections
• Loan application or LMI (Lenders Mortgage Insurance) costs
• Moving costs and furniture

Your local MoneyQuest mortgage broker can help you estimate these based on your location and lender.

3. Use Government Grants and Schemes 

First home buyer grants and schemes could save you thousands. Depending on your state or territory, you might be eligible for:

• First Home Owner Grant (FHOG)
• Stamp duty exemptions
• First Home Guarantee (5% deposit with no LMI)
• Super Saver Scheme (using your super to boost your deposit)

A broker will guide you through eligibility and help apply as part of the loan process.

4. Save at Least a 10-20% Deposit if You Can 

While some government schemes allow a 5% deposit, having at least a 20% deposit on your home loan ensures :

• You have more borrowing power
• You have a better chance of accessing more competitive interest rates
• You can sidestep Lenders Mortgage Insurance (LMI)

If you aren’t able to secure a 20% deposit,  You may still be able to access cost-effective lending solutions, and first home buyer incentives may help you avoid LMI. Your local MoneyQuest broker can help you structure a  loan shaped to your needs.

5. Don’t Max Out Your Budget 

Knowing the maximum you can borrow can give you power going into the home loan search, but your max shouldn’t be your goal.

If a lender says you can borrow $600,000, it doesn’t mean you should borrow that amount in its entirety. Take into account

• Interest rate increases.
• Unexpected bills or life changes.
• Enjoying your life (not just paying off a mortgage).

Work with a broker to find a repayment amount you’re comfortable with, not just what the bank approves. Be sure to take on a loan that isn’t going to cause massive headaches for the coming decades.

6. Understand the Loan Features You Need 

Your first loan isn’t just about the rate. There are several features and facilities that can be implemented to personalise a home loan to your needs. Ask your broker about:

• Offset accounts (great for reducing interest)
• Redraw facilities
• Fixed vs variable rates
• Split loans (a mix of both)
• Extra repayment options

The broker can prepare some repayment options and comparisons that are tailored to your goals and lifestyle.

7. Stay Credit-Savvy Before and During the Process 

Once you’re planning to apply for a loan:

• Don’t take out new credit cards or personal loans
• Avoid Buy Now Pay Later services
• Pay bills on time
• Hold off on big purchases (like a new car)
• Don’t change employment without discussing that with your broker.

Lenders will review your bank statements and credit score closely.

8. Speak to Us

Your broker works for you, not the bank. We compare dozens of lenders, explain your options in plain language, and do the heavy lifting on paperwork, approvals, and deadlines. We’re legally obligated to put your interests first, not ours and not the lenders, so you can rest assured knowing well do right by you.

Best of all, in most cases, our service is at zero cost to you.

Buying your first home can feel overwhelming, but with the right preparation and expert guidance, it doesn’t have to be. Talk to a mortgage broker early in the process – even before you start saving – so you can build a plan that works for you.

Reach out to your local MoneyQuest broker, and start your home journey today.

• SHARE