If you’re looking to purchase your first home, there are a few common mistakes to be aware of before you dive in.
But first, let’s take a look at the expanded scheme and what it means for buyers.
The scheme, formerly known as the Home Guarantee Scheme and now branded the Australian Government 5% Deposit Scheme, aims to help more Australians to buy their first home sooner.
Eligible first-time buyers on all income levels can purchase a home with a 5 per cent deposit, without having to pay costly lenders’ mortgage insurance (LMI). The government acts as a guarantor for 15 per cent of the home loan.
Price caps on eligible properties have lifted, and there is now no limit on the number of people who can apply. First home buyers in Sydney, for example, could purchase a $1.5 million home with a $75,000 deposit. A $950,000 home in Melbourne would require a $47,500 deposit.
As a first-home buyer, it’s an exciting time to be entering the market. Here are some common mistakes to be aware of.
Saving your deposit is only one piece of the puzzle. You also have to consider the other upfront costs of buying a home, which may include:
There are also ongoing costs to factor into your budget, such as council rates, water and utility costs, body corporate fees (for example, for apartments), maintenance and insurance. All of these need to be included in your budget.
It’s easy to fall in love with a property’s aesthetics and potentially blow your budget or overlook its flaws.
Take a critical approach when inspecting properties and make sure the property you settle on ticks your key boxes.
Remember that there will always be another property that you could call home, even if this one falls through.
Pre-approval is an indication of how much a lender is likely to lend you, based on an initial assessment of your income, expenses, assets and liabilities.
Getting pre-approval gives you a clear understanding of your spending limit, narrows down your property search and strengthens your ability to negotiate with sellers. You’ll be in a better position to make an offer or bid at auction with confidence, knowing your finances are in order and ready to go.
Pre-approval for a home loan usually lasts for 90 days.
You may be tempted to skip a building and pest inspection to save money, but that could ultimately cost you thousands in the long run.
You’ll want to ensure the property is free of structural problems and unwanted pests like termites, or other issues like asbestos or rising damp, before purchasing.
Arrange the building and pest inspection before you sign the contract of sale to avoid unwelcome surprises.
Buying your first home is exciting, but it’s important to have experts on your team steering you in the right direction.
As your finance broker, we’ll run through your current financial situation and purchasing goals, then find you the right home loan for your specific needs.
We can also explain whether you’re eligible for any first home buyer government incentives that could help you achieve your goals sooner.
Get in touch today.
Several factors are fuelling the uptick in growth. One is the lack of housing supply in many markets. The expansion of the Australian Government’s 5% Deposit Scheme from 1 October also saw a surge in first homebuyer activity and added demand to the lower and middle price points of the market.
The scheme has made it easier for first home buyers to get into the market with a deposit of just 5% (without paying LMI). However, it’s important to understand the risks involved. If the property’s value drops, borrowers could get caught in negative equity territory.
That’s why it’s so important to purchase the right property for your needs in the right location, without overspending. Here are some tips so that you can approach the market with confidence.
Thoroughly research the area you’re looking at buying in. Check out the median prices, recent sales, capital growth trends, access to amenities, planned developments, population growth and local employment.
These insights will help create a clear picture of the suburb, what you can expect to pay, and how you can anticipate your property might perform.
Tip: Ask us for a free suburb report to help inform your decision making.
It’s extremely rare to find the right property the first time you do an inspection. Usually, it takes a few goes to get a feel for the market and know what you really want in a home. So, be prepared to dedicate several weekends to open houses.
You could even check out some auctions to see how they work. It may give you insight into the kinds of buyers you may be competing with.
Once you do find a property you like, look for any intel around the neighbourhood that could be used as a negotiating tool. Street noise, perhaps? A dodgy-looking house on the corner? Anything that affects the appeal of the property is a potential bargaining tool.
A finance broker can explain your borrowing capacity and organise pre-approval on your finance. Pre-approval is an in-principle estimate of the maximum amount a bank is likely to lend to you.
Having pre-approval in place helps mitigate the risk of overspending and gives you confidence during the negotiating or bidding process. It also shows the seller that you mean business and are actually serious about buying.
When you fall in love with a property, it can be hard to walk away if the price is out of reach. However, it’s important not to let clever marketing tactics like a beautifully staged home trick you into paying more than you need to.
If the vendor won’t budge on price, you may need to look elsewhere.
By doing your research, understanding the market and organising your finance early through us, you can rest assured you’re not overspending. Whether you’re looking to get in before the end of the year, or want to discuss your options for next year, I’d be happy to chat through your purchasing aspirations or get the ball rolling on pre-approval.
From 1 October 2025, the government’s First Home Guarantee scheme expanded, making it possible for more Australians to buy a home with a deposit as low as 5%.
The First Home Guarantee is part of the Home Guarantee Scheme, an Australian Government initiative designed to help home buyers with a small deposit to purchase a property.
Under the scheme, eligible home buyers with a minimum 5% deposit can purchase a home without having to pay costly lender’s mortgage insurance. Housing Australia provides a guarantee of up to 15% of the property’s value to participating lenders, allowing purchasers to borrow up to 95% of the property’s value.
To be eligible, you must be a first-home buyer or not have owned a property in Australia in the last 10 years (applies to both in a joint application).
Previously, there were income caps applied ($125,000 for individuals or $200,000 combined for couples), along with property price caps and place limits.
From 1 October 2025, the scheme will be expanded to help more Australians buy their first home. Labor originally planned to introduce these changes in 2026, but they are being brought forward.
These changes include:
For first-time buyers, the scheme could shorten the time it takes to save for a deposit. Let’s look at a few examples, courtesy of Cotality.
In Melbourne, the median home value is now $803,242. It would take the average first-time buyer nine years to save a 20% deposit of $160,685 (based on modelling income estimates from ANU Centre for Social Policy Research of median household income as at March 2025). However, under the scheme, they could save a 5% deposit of $40,171 in 2 years.
In Sydney, the median home value is $1,228,435. Saving a 20% deposit of $245,687 would take 13 years on average, but under the scheme, they could save a 5% deposit of $61,422 in 3 years.
While the changes to the scheme are positive in the sense that more first-home buyers will be able to enter the market, some experts say the downside is that it may increase competition for housing stock and place upward pressure on property prices.
Treasury department modelling suggests the scheme will add 0.5% to home prices after six years. Other experts believe the scheme, combined with falling interest rates, will push prices higher than that and impact affordability.
If you’d like to chat about your eligibility for the scheme, get in touch and we’ll run through the criteria. As your finance broker, we’ll explain your borrowing capacity, organise pre-approval with a participating lender and walk you through the home loan application process.
Get in touch today.
Beyond interest rates, there are other features that can make a big difference to your loan and how much interest you pay. Two of the most common are redraw facilities and offset accounts. While they both help reduce interest, they work in slightly different ways.
Here’s a breakdown of what they mean and how to choose the option for your needs.
A redraw facility allows you to make extra repayments on your home loan and then access those extra funds later if you need them.
For example, if your minimum repayment is $2,000 and you pay $2,500, the extra $500 goes towards your loan. This lowers the balance and reduces the interest charged. If needed, you can request to withdraw that extra amount at a later date.
We can help you understand which lenders offer flexible redraw options that suit your financial plans.
An offset account is a transaction account linked to your home loan. It works like an everyday bank account – you can have your salary paid in, use a debit card, and pay bills directly from it.
The money in the account is “offset” against your home loan balance. For example, if your home loan is $500,000 and you have $20,000 in your 100 per cent offset account, you are only charged interest on $480,000.
As your broker, we can help you compare lenders to find an offset account that matches your spending and savings habits.
Choosing the right loan features
If you’re just starting to explore your home loan options, it’s okay not to have all the answers. The most important thing is to choose a loan that suits how you want to manage your money.
Some loans include redraw or offset features as part of the package. Others may charge more or offer fewer benefits. I’ll help you make sense of your choices so you can borrow with confidence and avoid paying more than you need to.
Now is the ideal time to get organised. If you’re looking at buying in the coming months and want to understand how loan features like redraw and offset accounts can help, let’s chat. I can also help you get pre-approval sorted so you’re ready when the right property comes along.
Have you ever had a client who was struggling to get a home loan because they didn’t have enough of a deposit saved? Or wanted to avoid paying Lenders Mortgage Insurance (LMI)?
Guarantor Loans could be an accessible option!
A Guarantor loan is where a family member ( usually a parent ) offers part of their property as security to help the borrower purchase a property. This can assist with;
✅Buying with little to no deposit
✅Avoid costly Lenders Mortgage Insurance premiums
✅Get their foot in the property market earlier
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Who can be a guarantor? Usually parents, but it can also be other family memebers or close assosciates with suitable security
How does it work?
Click below to watch the video and learn more;
YOUR FIRST HOME BUYERS GUIDE
Crafted by your local Mortgage Brokers
WHO IS MY LENDING SPECIALIST?
At My Lending Specialist, we are more than just mortgage brokers — we are your local trusted partners in achieving homeownership.
With a deep understanding of the lending market and a passion for helping first-home buyers, we provide tailored finance solutions to suit your unique needs.
Our team is dedicated to making the loan process simple, stress free, and transparent, ensuring you feel confident every step of the way.
Whether you’re purchasing your first home, refinancing, or investing, we take the time to find the right loan for you — so you can focus on what matters most, turning your dream home into a reality!
WHY USE A MORTGAGE BROKER?
At My Lending Specialist, we simplify the home loan process, ensuring you find the best mortgage solution without the hassle.
THINKING ABOUT BUYING?
Buying Your First Home? Let’s Make It Happen!
Buying your first home is an exciting milestone, but it can also feel overwhelming. That’s why we’ve created this comprehensive guide—to simplify the process and help you take confident steps toward homeownership.
What to Consider Before You Buy
NSW GOVERNMENT SCHEMES
First-home buyers in New South Wales (NSW) have access to several government programs to make purchasing a home more achievable.
Below we have included a brief overview:
First Home Owner Grant (FHOG)
First Home Buyers Assistance Scheme (FHBAS)
Home Guarantee Scheme (HGS)
These initiatives aim to reduce costs and financial barriers, making homeownership more accessible for first-home buyers in NSW.
READY TO BUY
You’ve done the groundwork, and now it’s time to take the next step toward homeownership. Being prepared at this stage will help you buy with confidence and avoid unexpected surprises.
Get Pre-Approval – Work with your broker to confirm your borrowing power and to become a serious buyer in the market.
Research the Market – Compare recent sales, check suburb trends, and future developments. Talking to your local agents is valuable.
Know the Buying Process – Understand the difference between private sales and auctions and what each involves.
Inspect the Property – A building and pest inspection can reveal potential issues.
Review Contracts – Have a solicitor or conveyancer review the contract of sale before signing.
Budget for Additional Costs – Stamp duty, legal fees, loan fees, and insurance should all be factored in.
BUYING YOUR PROPERTY
Making an Offer
If you’re buying through auction, you’ll need to register as a bidder and have your deposit ready. If you place the winning bid, contracts are signed, and a deposit is paid on the same day.
For a private sale, you’ll negotiate the price with the seller, usually through the real estate agent. Once an agreement is reached, contracts are signed, and a deposit is paid, typically within a few days.
Finalising Your Finances
After your offer is accepted, the next step is securing final loan approval. Your lender will complete a property valuation, and we’ll guide you through the final paperwork to ensure everything is in place before settlement.
Getting Ready for Settlement
The period between signing the contract and settlement is your chance to finalise all details. During this time, you should:
Settlement Day
On settlement day, legal and financial representative complete the transfer of ownership, and once everything is finalised, you’ll receive the keys to your new home. You’re Officially a Homeowner!
NEED EXPERT GUIDANCE?
LET’S TALK!
At My Lending Specialist, our team of local experts is dedicated to making the home-buying process simple, stress-free, and tailored to you. Whether you need help navigating government grants, loan pre-approvals, or understanding your borrowing power, we’ll provide the support and advice you need to make informed decisions.
DANYELLE FRANK & DAMIEN AGOSTINI
We’d love to hear from you! Whether you have questions or need
assistance, we’re here to help.
If you would like a printed version of this guide or would like to share this with someone looking to get into the property market, please click the link below for a pdf version.
Ever had a client who gave up on buying because they didn’t have a 20% deposit…or couldn’t afford the LMI bill? Let’s clarify what that actually means.
Lenders Mortgage Insurance (LMI) is an insurance policy that the borrower pays when they have less than a 20% deposit. It protects the lender, not the borrower — and it can cost tens of thousands of dollars, depending on the loan size and deposit.
There are a few ways we can avoid paying lenders mortgages insurance, the most common are below;
1. First Home Guarantee – Not Just for First-Time Buyers
2. Single Parent Guarantee – 2% Deposit, No LMI
3. Professional LMI Waivers – Who’s Included? Many banks offer LMI waivers up to 90–95% LVR for select professionals.
Some of the eligible occupations include (varies by lender):
4. Pepper Money’s New Policy – 90% No LMI
Pepper has just rolled out a 90% LVR loan with no LMI for most borrowers — a solid solution for people with good income and clean credit who might not tick every “bank” box.
Click below to watch the video and learn more;
103 Banna Avenue,
Griffith NSW 2680
P | 02 6964 4690
info@mylendingspecialist.com.au
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