First Home Buyer Loans

What is a first home buyer loan?

A first home buyer loan is a home loan designed for people purchasing their first property. It works like any other home loan — you borrow money from a lender to buy a home and repay it over time with interest — but as a first home buyer you may also be eligible for government grants, stamp duty concessions and guarantee schemes that can reduce your upfront costs and help you enter the market sooner.

At Gateway Finance, we take the time to understand your goals, explain every option in plain language, and compare over 28 lenders to find a loan that fits your budget and circumstances. We handle the paperwork, the lender negotiation and the application process so you can focus on finding the right home. Use our borrowing power calculator to see how much you can borrow, and our stamp duty calculator to estimate your upfront government costs.

The 20% benchmark

A deposit of 20 percent of the property's purchase price is generally recommended. At this level you typically avoid paying Lender's Mortgage Insurance, which can save you a significant amount. However, many first home buyers enter the market with a smaller deposit, and options exist to make that possible.

Below 20% and LMI

If your deposit is less than 20 percent, most lenders will require Lender's Mortgage Insurance (LMI). LMI protects the lender if you default on the loan, not you. The premium is usually added to your loan amount, meaning it is paid off gradually alongside your mortgage.

Other upfront costs

Beyond your deposit, budget for stamp duty (though concessions may apply), legal and conveyancing fees, building and pest inspections, and moving costs. Your broker will help you understand the full picture so there are no surprises at settlement.

Federal guarantee schemes

The Australian government runs guarantee schemes that allow eligible first home buyers to purchase with a smaller deposit without paying Lender's Mortgage Insurance. The government acts as a guarantor for the portion of the loan that would normally trigger LMI. These schemes are administered through participating lenders and have limited places each year.

New South Wales concessions

In New South Wales, eligible first home buyers may access stamp duty concessions or exemptions and a first home owner grant for the purchase of a new home. These concessions can significantly reduce the upfront cost of buying your first property. The specific thresholds and eligibility requirements determine what you may be entitled to.

Queensland concessions

In Queensland, eligible first home buyers may access stamp duty concessions on the purchase of a first home, as well as a first home owner grant for buying or building a new home. These concessions can reduce the amount of duty payable at settlement, making it easier to manage your upfront costs.

Confirm with your broker

Eligibility criteria, price caps, income limits and grant amounts for all government schemes change regularly. Your Gateway Finance broker will confirm the current details, check your eligibility and help you apply for any schemes you qualify for as part of your loan application.

Income and employment

Lenders look at your income sources, employment stability and length of time in your current role. Steady employment and a reliable income give lenders confidence in your ability to meet repayments.

Living expenses

Your monthly living expenses are assessed against your income to determine your borrowing capacity. Lenders review bank statements to understand your spending patterns and ensure the loan is affordable.

Credit history

Your credit score and credit file are checked for any defaults, late payments or other negative markers. A clean credit history improves your chances of approval and access to better interest rates.

Existing debts

Any existing loans, credit cards or buy-now-pay-later accounts are factored into your application. Reducing or closing unnecessary credit facilities before applying can improve your borrowing power.

How much deposit do I need as a first home buyer?

Most lenders prefer a 20 percent deposit, but many first home buyers purchase with a smaller deposit. If you have less than 20 percent, lenders will generally require Lender's Mortgage Insurance. Some government schemes may allow eligible buyers to purchase with a much smaller deposit without paying LMI.

What is Lender's Mortgage Insurance and who pays for it?

Lender's Mortgage Insurance (LMI) protects the lender, not you, if you default on your loan. It is typically a one-off premium added to your loan amount when your deposit is below 20 percent. The cost varies based on your loan size and deposit percentage, and it can add tens of thousands of dollars to your loan.

Am I eligible for any government grants or concessions?

There are federal and state-based schemes available to eligible first home buyers, including guarantee schemes that allow low-deposit purchases without LMI, as well as stamp duty concessions and first home owner grants. Eligibility criteria and thresholds change regularly, so confirm current details with your broker.

What documents do I need for a first home buyer loan application?

You will need identification, proof of income such as payslips or tax returns, bank statements showing savings and expenses, and details of any existing debts. Your broker will provide a full checklist and help you gather everything the lender requires before the application is submitted.

How long does the first home buyer loan process take?

From initial consultation to formal approval, the process typically takes two to six weeks depending on the lender, the complexity of your situation, and how quickly documents are provided. Your broker will keep you informed at every stage and work to keep the timeline as short as possible.

Should I use a broker or go straight to my bank?

A broker compares loans from over 28 lenders, including major banks and specialist lenders, rather than offering a single product. This means you see a wider range of interest rates, features and eligibility options in one conversation, which is especially valuable for first home buyers navigating the process for the first time.