Calculate your borrowing power, estimate mortgage repayments, and understand the full home buying process in Australia.
Buying your first home is one of life's biggest financial decisions. This guide walks you through the entire process, from understanding government grants to calculating your borrowing power and monthly repayments. Use our free tools alongside this guide to build a clear picture before you commit.
Before you start house hunting, know your numbers. Our Mortgage Calculator helps you estimate your monthly repayments based on your loan size, interest rate, and term — so you can set a realistic budget from the start.
Australia offers several programs to help first home buyers enter the property market:
See our full breakdown of First Home Buyer Grants by State for the specific amounts and thresholds in NSW, VIC, and QLD.
The First Home Guarantee allows eligible first home buyers to purchase a home with as little as a 5% deposit. The government guarantees up to 15% of the property value, eliminating the need for Lenders Mortgage Insurance (LMI) — which can otherwise cost tens of thousands of dollars. Places are limited each financial year. See Housing Australia for current eligibility criteria and price caps.
Each state and territory offers different FHOG amounts and eligibility criteria. These grants typically range from $10,000 to $20,000 and are designed to help first home buyers with their deposit requirements. The grant generally applies to new builds and substantially renovated homes only — not established properties. See our First Home Grants guide for state-by-state details.
Most states offer significant stamp duty concessions for first home buyers, including full exemptions for properties under certain value thresholds. In NSW, homes under $800,000 attract no stamp duty for eligible first home buyers. In Victoria, homes under $600,000 are fully exempt. These concessions can save thousands of dollars in upfront costs — check your state's revenue office for the current thresholds.
Your borrowing power depends on several factors: your income, existing debts, living expenses, and the lender's assessment rate (which is typically 3% above the advertised rate). Most lenders use a debt-to-income ratio assessment, though this varies. As a rough rule of thumb, you may be able to borrow 5–6 times your gross annual income, but the actual figure will depend on your specific financial situation.
Use our Mortgage Calculator to plug in different loan amounts and see what your monthly repayments would look like at current interest rates.
Traditional home loans require a 20% deposit to avoid LMI. With the First Home Guarantee, you may only need a 5% deposit. Here's a quick overview:
Beyond the purchase price and deposit, first home buyers should budget for:
In total, budget an extra 3–5% of the purchase price for these upfront costs.
Getting pre-approved for a home loan before house hunting gives you confidence in your budget and makes you a more credible buyer. Pre-approval typically lasts 3–6 months and provides a clear indication of your borrowing capacity. It does not guarantee final approval, but it shows sellers you're serious and financially ready.
Disclaimer: This guide provides general information about buying your first home in Australia and is not intended as financial, legal, or mortgage advice. Always consult a licensed mortgage broker, financial adviser, and conveyancer for advice specific to your situation. Scheme details, eligibility criteria, and property price caps can change — always check current government sources.