Multiple pathways exist to help you achieve home ownership in Australia. From
securing pre-approval to accessing government grants, low-deposit schemes, and leveraging family support,
first home buyers have more options than ever before.
This guide provides an overview of every major pathway into the property market, helping you understand which options apply to your situation and how they work together. For the step-by-step process from start to finish, read our
pre-approval to home ownership guide.
Quick summary: The main pathways include the Home Guarantee Scheme (5% deposit, no LMI), the Help to Buy Scheme (2% deposit, government equity), stamp duty concessions (save up to $30,529), the First Home Owner Grant ($10,000 on new homes), the FHSSS (save up to $50,000 through super), guarantor loans, and low deposit loans with LMI. Many of these can be combined for maximum benefit.
Securing pre-approval
Securing pre-approval is the essential first step in your home buying journey. It provides a realistic expectation of your borrowing capacity, shows sellers you are a serious and prepared buyer, and gives you a competitive advantage when making offers. Pre-approval typically lasts 3 months and involves a lender assessing your income, expenses, debts, and credit history.
Before seeking pre-approval, understanding your budget is crucial. Use our mortgage repayment calculator to model different loan amounts and see what you can comfortably afford each month, and our property deposit calculator to see the maximum property price your deposit supports.
Government schemes and grants
Home Guarantee Scheme (5% deposit, no LMI)
The Home Guarantee Scheme allows eligible first home buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees up to 15% of the property value to your lender, effectively bridging the gap between your 5% deposit and the 20% threshold. This can save you $10,000 to $65,000+ in LMI depending on the property price. You need to meet genuine savings requirements for your deposit. Read the benefits and risks to decide if this pathway suits you.
Help to Buy Scheme (2% deposit, government equity)
The Help to Buy Scheme (formerly the Shared Equity Scheme) is now live and allows eligible buyers to purchase with just a 2% deposit. The government contributes up to 40% equity on new homes or 30% on existing homes, dramatically reducing your loan amount and monthly repayments. No LMI is payable and no rent is charged on the government's share. Income caps of $100,000 (single) or $160,000 (couple) apply.
NSW stamp duty concessions
Stamp duty concessions for first home buyers in NSW can save you up to $30,529. Full exemption applies for properties valued up to $800,000, with concessional rates for properties between $800,001 and $1,000,000. For vacant land, full exemption applies up to $350,000.
First Home Owner Grant ($10,000)
The First Home Owner Grant provides $10,000 to eligible first home buyers purchasing or building new properties. The grant applies to newly built homes valued up to $600,000 or land and construction combined up to $750,000.
First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSSS) lets you save up to $50,000 through your superannuation with tax advantages. Contributions are taxed at just 15% instead of your marginal rate, and the ATO applies an earnings rate typically higher than standard savings accounts. This accelerates your deposit building and the withdrawal counts as genuine savings for lender purposes.
Which pathway is right for you?
We help first home buyers compare all available schemes and find the best combination for their situation, with 35+ lenders compared at $0 cost to you.
Other pathways to home ownership
Guarantor loans
A guarantor loan involves a family member who agrees to guarantee part of your loan by using their property equity as additional security. This can help you avoid LMI and enter the property market with minimal or no deposit of your own. Both you and your potential guarantor should seek independent financial and legal advice before proceeding, as the guarantor takes on responsibility if you default.
Low deposit loans with LMI
If you do not qualify for government schemes, low deposit loans with LMI allow you to purchase with 5% to 10% deposit. While LMI adds an extra cost to your loan (typically $5,000 to $25,000+ depending on the property price and your deposit), it enables you to begin building equity in a property without waiting years to save 20%. Understanding your Loan to Value Ratio helps you see exactly what your deposit level means for your loan terms and LMI costs. Our deposit options guide covers every pathway to building your first deposit.
Using existing property equity
If you or your co-borrower already own property, you may have built up equity that you can use towards purchasing another home. Equity release involves accessing the value tied up in your current property, providing funds for a deposit on your next purchase. Our home equity calculator helps you determine exactly how much equity you can access at different LVR levels.
Choosing the right loan structure
The home loan market offers various products designed to meet different needs. Our choosing the right finance guide covers each option in detail.
Fixed-rate loans provide payment stability with locked-in interest rates for a set period (typically 1 to 5 years), offering certainty for budgeting and protection against rate increases. Variable-rate loans offer flexibility with rates that change according to market conditions, typically featuring offset accounts and allowing additional repayments without break costs. Split loans combine fixed and variable components to balance stability and flexibility. And offset accounts reduce interest payments by offsetting your loan balance with your savings, allowing you to pay less interest while maintaining access to your funds.
Understanding the property buying process
Once you have pre-approval and understand your financial options, the next step is finding and purchasing the right property. Our how to buy the right property guide helps you evaluate different options.
You can purchase through private treaty (negotiating directly with the seller), auction (competitive bidding), or off the plan (purchasing before construction is complete). Each method has different timelines, risks, and considerations. Our property purchase and valuation guide explains how bank valuations work and how they affect your loan.
Consider what property type suits your situation. A freestanding house offers full land ownership. A strata apartment or townhouse provides a lower entry point, often in better locations. Purchasing vacant land to build gives you customisation and access to the FHOG. Our location, condition, and vibes guide helps you evaluate suburbs and neighbourhoods beyond just price.
Budgeting for ongoing costs
Beyond the purchase price and upfront costs, home ownership involves ongoing expenses that you need to factor into your budget. Mortgage repayments are your primary ongoing cost, typically spread across 25 to 30 years. Council rates and water charges vary by location and property value. For strata properties, quarterly levies cover building maintenance and common areas. Home insurance is essential protection for your property. Budgeting 1% to 2% of property value annually for maintenance and repairs helps cover unexpected costs. And utilities such as electricity, gas, water, internet, and phone add to your monthly commitments.
Use our mortgage repayment calculator to model your ongoing costs and ensure you can comfortably afford your property long-term. From purchase to settlement and beyond, understanding the full picture of home ownership costs ensures a confident decision.
Frequently asked questions
What is the first step I should take when considering buying my first home?
Start with a comprehensive assessment of your financial situation, including your income, expenses, savings, and existing debts. Our budgeting guide walks you through this process. Then book a consultation to understand your borrowing capacity and which government schemes you are eligible for.
How much deposit do I need to buy my first home?
This depends on which pathway you use. The Help to Buy Scheme requires just 2%. The Home Guarantee Scheme requires 5% with no LMI. Low deposit loans with LMI typically require 5% to 10%. A guarantor loan may allow you to enter with minimal or no deposit. And 20% avoids LMI entirely. Our deposit options guide covers every pathway in detail.
How long does the entire home buying process typically take?
A typical first home purchase follows this approximate timeline. Pre-approval takes 3 days to 1 week. Property search typically takes 1 to 3 months. Contract negotiation and exchange takes 1 to 2 weeks. The settlement period runs 30 to 90 days (typically 42 days). From serious property hunting to receiving your keys, the process often takes around 3 months.
Can I use multiple government schemes and grants simultaneously?
In many cases, yes. You might be eligible to combine the First Home Owner Grant, stamp duty concessions, the Home Guarantee Scheme, and FHSSS benefits. Each scheme has specific eligibility criteria, and some combinations may not be possible depending on your circumstances. We can help you identify which combinations are available and maximise your total benefits.
What costs should I budget for beyond the property price?
Beyond the purchase price, budget for stamp duty (though concessions may apply), legal and conveyancing fees ($1,200 to $2,500), building and pest inspections ($300 to $800), mortgage registration and transfer fees, loan application fees, moving costs, initial repairs or renovations, and furniture. These costs typically add 2% to 5% to your purchase price, though first home buyer concessions can significantly reduce this amount.
How do I know if I should use a guarantor loan?
Consider a guarantor loan if you have strong income but limited savings, have a family member willing and financially able to provide a guarantee, want to avoid LMI, and are looking to enter the market sooner rather than waiting to save. Both you and your potential guarantor should seek independent financial and legal advice before proceeding.
Take the next step
Understanding the pathways available to you is the first step toward confident home ownership. Start with our essential first home buyer tips covering the six key areas every buyer must understand, then use our property deposit calculator and mortgage repayment calculator to plan your finances.
Learn more about our team, or explore our service areas across 220+ Sydney suburbs.
Discover your best pathway to home ownership
We help first home buyers compare all available schemes and find the best combination from 35+ lenders at $0 cost to you.
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