Mortgage Broker for First Home Buyers
Buying your first home involves more than finding a property and choosing an interest rate. I help first home buyers understand their borrowing position, compare suitable home loans from more than 60 lenders, prepare for pre-approval and navigate the finance process through to settlement.
Personal mortgage broking help for your first home
For many buyers, the first home loan application is the first time they have needed to understand borrowing capacity, lender servicing rules, genuine savings, lenders mortgage insurance, government initiatives, pre-approval and the costs that sit outside the purchase price.
As your mortgage broker for first home buyers, I begin by understanding what you are trying to achieve and where you are in the buying process. I then assess your income, expenses, liabilities, deposit and likely purchasing costs before comparing suitable options from the lenders available through my panel.
You deal directly with me throughout the process. I explain the reasons behind a recommendation, help prepare the supporting documents, submit the application and keep you informed while the lender completes its assessment.
- ✓More than 60 lenders
Including major banks, non-bank lenders and specialist lenders. - ✓Qualified mortgage broker since 2012
Practical assistance based on lender policy and your individual position. - ✓Support from assessment to settlement
One point of contact as your application progresses.
Meet your first home buyer broker
I’m Tane Taiaroa from Discovery Home Loans. I help first home buyers understand the lending process and prepare a well-supported application without unnecessary jargon.
Appointments are available in person where suitable, or by phone and video across Australia.
Why use a mortgage broker as a first home buyer?
A lender can only discuss the products and policies available through that lender. A mortgage broker can compare suitable options from the lenders available through the broker’s panel. This distinction matters because lenders do not all assess the same application in the same way.
One lender may treat overtime, bonuses, casual income, probation, existing credit limits or genuine savings differently from another. Interest rates and fees also matter, but a competitive product is only useful when the lender’s policy is suitable for your circumstances.
A first home buyer broker can also help you understand the sequence of the transaction. That includes when to seek pre-approval, which documents to prepare, what may change after you select a property and why formal approval should be confirmed before any finance condition expires.
Your first home buying journey
Review your goals, income, expenses, debts, deposit and timeframe.
Estimate a realistic purchasing range and likely repayments.
Allow for the deposit, duty, conveyancing, inspections and other costs.
Check potential eligibility under the current rules.
Prepare and submit a conditional application subject to valuation.
Look within a realistic range. Once you have found a property, you should engage a conveyancer.
The lender assesses the selected property and any remaining conditions.
Once lender conditions are satisfied, I continue working with the lender and keep you informed throughout the remaining steps until your loan settles.
Every application is different. Approval timeframes and outcomes depend on the lender, your circumstances, supporting documents, valuation requirements and the property being accepted as security.
How much deposit do first home buyers need?
The deposit required depends on the lender, the property, your eligibility for any guarantee or grant and whether a family guarantee is available.
5% deposit
Some eligible buyers may be able to purchase with a deposit from 5%, including through participating lenders under the First Home Guarantee. You still need to satisfy the lender’s credit assessment and have enough funds for costs not covered by the loan.
10% deposit
A larger deposit will reduce the loan-to-value ratio and the amount of LMI, particularly where you do not qualify for a 5% deposit scheme because of property price caps or other eligibility requirements.
20% deposit
A 20% deposit will avoid LMI, although it is not the only factor considered in loan approval.
What counts towards your deposit?
Depending on lender policy, acceptable funds may include genuine savings, funds held in your account, a gift from family, proceeds from an asset sale, an eligible grant or other verified sources.
Some lenders require part of the deposit to be demonstrated as genuine savings held for a minimum period. Others may make allowances based on rental history or other evidence.
For buyers without a standard deposit, a family guarantor home loan may be worth considering. A guarantor takes on a serious legal obligation and should obtain independent legal and financial advice.
Government help for eligible first home buyers
Government initiatives can change, and eligibility is not automatic. The following overview is general information only. Current rules should be confirmed with the responsible government agency, your conveyancer and the participating lender.
First Home Guarantee
The First Home Guarantee is administered by Housing Australia. Eligible first home buyers may be able to purchase through a participating lender with a deposit from 5%, without paying LMI, subject to current eligibility rules, property price caps and lender approval.
First Home Owner Grant
First Home Owner Grant rules vary between Australian states and territories. Depending on where you are buying, eligible purchasers of a new home may qualify for a grant, subject to current property value limits, residency requirements and other eligibility criteria. Established homes may not qualify in some jurisdictions.
Stamp duty exemptions and concessions
First home buyer stamp duty exemptions and concessions vary between states and territories. Eligibility can depend on the property value, whether the home is new or established, how the property will be occupied and other local requirements. Your conveyancer or solicitor should confirm the treatment that applies to your purchase.
Borrowing capacity before you start looking
Your borrowing capacity is influenced by your income, living expenses, existing debts, dependants, credit limits, loan term and the lender’s assessment rate. It is not simply a multiple of your salary.
Credit cards can reduce borrowing capacity based on their limits, even when the balance is cleared each month. Buy-now-pay-later accounts, personal loans, car finance and HECS-HELP obligations may also affect the assessment.
Find out more about borrowing capacity before setting your property budget.
Home loan pre-approval for first home buyers
Pre-approval can give you a clearer purchasing range and identify issues before you commit to a property. It is normally conditional and may be subject to updated documents, a satisfactory valuation and acceptance of the property.
A pre-approval is not a promise that any property will be accepted. Apartments, small units, unusual titles, properties requiring major repairs and some postcodes may be subject to additional lender restrictions.
Read about home loan pre-approval and what to prepare.
Mortgage broker versus going directly to one bank
| Area | Mortgage broker | Bank mobile lender or branch |
|---|---|---|
| Product access | Can compare suitable options from more than 60 lenders available through the broker’s panel. | Can discuss the products and policies available through that bank only. |
| Lender policy | May compare major banks, non-bank lenders and specialist lenders where suitable. | Assesses the application under that bank’s own credit policy. |
| Application support | Helps prepare the application, documents and lender submission, then follows its progress. | Supports an application lodged with that bank. |
| Point of contact | You deal directly with your broker throughout the process. | The service model varies between branch, mobile and central processing teams. |
| Recommendation | Provides a written credit proposal explaining why the recommended option is considered suitable. | Can discuss suitability within the bank’s available product range. |
How I compare home loans for first home buyers
The lowest advertised interest rate is not automatically the most suitable loan. A proper comparison considers whether the lender will accept your income, deposit source, employment type, liabilities and selected property.
Lender and policy fit
- Income accepted by the lender
- Deposit and genuine savings rules
- Government guarantee participation
- Property and postcode restrictions
- Credit history and account conduct
Loan cost and structure
- Interest rate and comparison rate
- Application and ongoing fees
- Offset or redraw features
- Fixed, variable or split options
- Repayment flexibility and future plans
I then explain the reasons for the recommended option so you can make an informed decision before proceeding.
Common first home buyer mistakes to avoid
Setting a budget from an online calculator alone
Online calculators are useful estimates but cannot apply every lender’s policy or confirm approval.
Forgetting purchasing costs
The deposit is only one part of the funds required. Allow for legal work, inspections, insurance, adjustments and other transaction costs.
Making an unconditional offer too early
Pre-approval is conditional. Obtain independent legal advice before waiving a finance condition or bidding without one.
Opening new credit before settlement
A new credit card, personal loan, car loan or buy-now-pay-later facility can negatively affect your borrowing capacity and may change the outcome of your application.
Changing jobs without checking the impact
A change of employer, hours, income structure or probation status may affect lender acceptance.
Choosing a loan only by the headline rate
Fees, features, lender policy and how the loan fits your plans should be considered with the rate.
Using all available savings
Leaving no buffer can make moving, repairs and unexpected expenses more difficult after settlement.
Assuming a grant is guaranteed
Each initiative has eligibility, property and residency rules that must be satisfied.
Documents to prepare for a first home loan application
Preparing complete and up-to-date information can help reduce delays. While document requirements vary between lenders and individual circumstances, commonly requested documents include:
- Current identification documents.
- Recent payslips and evidence of salary credits, or self-employed income documents.
- Bank statements showing savings and the source of deposit funds.
- Statements for credit cards, personal loans, car loans and other liabilities.
- Details of living expenses and regular commitments.
- Evidence of rent where relevant to lender policy.
- The signed contract of sale once a property has been selected.
I will provide a document list based on your circumstances and the selected lender rather than asking you to guess what is required.
Related first home buyer information
Frequently asked questions about first home buyer brokers
What does a mortgage broker do for a first home buyer?
A mortgage broker assesses your financial position, explains borrowing options, compares suitable loans from lenders on the broker’s panel, prepares the application and supports you through lender assessment, approval and settlement.
Is using a mortgage broker helpful for a first home buyer?
It can be particularly helpful because lender policies, deposit requirements, government initiatives and purchasing costs can be difficult to compare for the first time. A broker can explain the process and identify suitable options based on your circumstances.
How much does a mortgage broker cost a first home buyer?
In many standard residential lending situations, the lender pays the broker a commission and no separate broker fee is charged to the borrower. Any fee that may apply must be disclosed before you proceed.
Can a first home buyer purchase with a 5% deposit?
Yes, eligible buyers may be able to purchase with a deposit from 5% under participating lender policies or a government guarantee. Eligibility, property price caps, lender assessment and purchasing costs still apply.
What is lenders mortgage insurance?
Lenders mortgage insurance, commonly called LMI, generally protects the lender rather than the borrower when a loan exceeds the lender’s preferred loan-to-value ratio. It may be payable upfront or added to the loan, subject to lender policy.
Do I need home loan pre-approval?
Pre-approval is not compulsory, but it can help establish a realistic purchasing range and identify lending issues before you make an offer. It remains conditional and does not guarantee final approval.
How long does pre-approval last?
Many lender pre-approvals are valid for approximately 90 days, although the period and renewal requirements vary. The lender may reassess your income, expenses, liabilities, credit history and the selected property.
How much can I borrow for my first home?
Borrowing capacity depends on income, living expenses, existing debts, dependants, deposit, interest-rate buffers and the lender’s assessment policy. Different lenders can produce materially different results.
What documents will I need?
Common documents include identification, recent payslips or self-employed income evidence, bank statements, details of debts and credit limits, evidence of savings and deposit funds, and information about your living expenses.
Can casual or probationary employees get a home loan?
Yes, some lenders accept casual employment or applicants on probation, but requirements vary. Employment history, consistency of income, industry, hours worked and the strength of the overall application may be considered. This is a good example of why using a mortgage broker can help, because lender policies differ and the right lender for one applicant may not be suitable for another.
Can self-employed first home buyers get a loan?
Yes. Lenders may assess tax returns, financial statements, notices of assessment, business activity statements, account conduct and ABN history. The documents and minimum trading period vary between lenders.
Can my parents help through a family guarantee?
A family guarantee may allow an eligible family member to provide limited security using equity in their property. It can reduce the deposit required or help avoid LMI, but the guarantor should obtain independent legal and financial advice.
What is the First Home Guarantee?
The First Home Guarantee is an Australian Government initiative administered by Housing Australia. Eligible buyers may be able to purchase through a participating lender with a deposit from 5%, subject to the current rules, property price caps and lender approval.
Can I receive a First Home Owner Grant?
First Home Owner Grant rules vary between Australian states and territories. Eligibility can depend on where you are buying, whether the property is new, the property value, residency requirements and other current criteria.
Do first home buyers pay stamp duty?
Stamp duty rules and first home buyer exemptions or concessions vary between Australian states and territories. Your conveyancer or solicitor should confirm the amount and any concession that applies to your purchase.
Should I choose a fixed or variable home loan?
That depends on your budget, need for repayment certainty, preference for flexibility and expectations about future changes. Some borrowers also consider splitting the loan between fixed and variable portions.
Can I make an offer before receiving pre-approval?
You can, but doing so may create additional risk. Before making an unconditional offer, you should understand your likely borrowing position and obtain independent legal advice about any finance condition in the contract.
What happens after my offer is accepted?
The lender will usually assess the property, update or complete the financial assessment and issue formal approval if all conditions are satisfied. Loan documents are then signed before your lender and conveyancer coordinate settlement.
When should I speak with a first home buyer broker?
It is sensible to speak with a broker before you begin making offers. Early assessment gives you time to review your deposit, borrowing capacity, documents, credit history, government initiatives and likely purchasing costs.
Speak with a mortgage broker for your first home
Tell me where you are in the buying process and what you would like to achieve. I will explain the information required to assess your position and the next practical steps.