First home buyers: the straight answers first
Buying your first home is exciting, and it goes best for the buyers who know their real numbers before they start inspecting. This page gives you the straight answers: what decides how much you can borrow, what a deposit actually needs to cover, and what help exists for first home buyers in NSW. Read it before you fall for a property, not after.
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The basics
What you can borrow is not what you hope to borrow?
Your borrowing power is set by your income, your living expenses, your existing debts — including car loans, HECS and credit card limits, even unused ones, and the buffer lenders are required to add on top of current rates. It is usually less than the online calculators suggest, because they don’t know your full picture.
Here’s the honest guidance: the gap between what buyers expect and what the numbers support is the most common reason first purchases stall. If your income is $90,000 with a $50,000 deposit, a $1 million property is not the realistic starting point, and a broker who implies otherwise is wasting your time. Knowing your true ceiling early means you inspect the right homes, offer with confidence, and don’t lose months to heartbreak.
help available
The deposit, and the help available
A 20% deposit avoids Lenders Mortgage Insurance (LMI), but far fewer than half of first home buyers wait that long. With a smaller deposit you’ll generally either pay LMI, a one-off premium that can be added to the loan, or qualify for government help:
- The First Home Guarantee (through Housing Australia) lets eligible buyers purchase with as little as 5% deposit and no LMI, with places limited and criteria on income and property price.
- NSW first home buyers may also qualify for stamp duty exemptions or concessions and, for new builds, the First Homeowner Grant.
- Eligibility rules and caps change — we check your position against the current settings rather than last year’s blog posts.
Remember the costs beyond the deposit too: stamp duty (if payable), legal and inspection fees, and moving costs. We’ll map the full cash-to-complete figure with you so there are no surprises.
what we do
What a broker does for a first home buyer
We tell you your real borrowing range before you start looking, check which guarantees and concessions you qualify for, and match you to the right lender among 50+, including the ones that treat your profession, deposit source or visa status more generously than others. Then we run the process to settlement while you focus on finding the home. Our service costs you nothing for standard home loans; the lender pays us on settlement.
Your questions
Frequently asked questions
Straight answers to what our clients ask us most.
How much deposit do I actually need?
With the First Home Guarantee, potentially 5% plus purchase costs. Without it, lenders generally want more, and below 20% you’ll usually pay LMI. The right answer depends on your income, the price range and the current scheme settings — a 15-minute conversation settles it.
Should I get pre-approval before looking at properties?
Yes — it confirms your real budget, shows agents you’re serious, and typically holds for about three months. It’s the single best first step a first home buyer can take.
My borrowing power came back lower than I expected. What now?
It happens often, and it’s rarely final. Reducing credit card limits, clearing small debts, or adjusting the target price range can all shift the number. We’ll tell you which levers actually move your capacity — and which online tips don’t.
Can my parents help without gifting the whole deposit?
Possibly — some lenders accept family guarantees, where a parent’s equity supports your purchase. It has real implications for the guarantor, so it needs proper advice, but it’s an established path for Western Sydney families.
Want your real number before you start inspecting?
Book a 15-minute call — it’s free, and it will save you months.
or call 1800 147 258
General information only, not financial advice. Finedge Finance provides credit assistance.