As a first-time buyer and homeowner, there are crucial things to consider. But what is a first-time buyer? A first-time buyer is someone who is purchasing their first home and has never owned a residential property in the country they reside in or any other country. So, if you’re a first-time buyer or homeowner, this guide will help you buy your first home.
So when buying your first home, it’s better to understand these definitions:
- First-time buyer: you haven’t owned a home before.
- Mortgage: a long-term loan to buy a home, using the home as security.
- What you’ll learn in this guide.
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Can You Afford It?
How lenders decide your borrowing power:
First, banks will look at your income, and then your existing debts, living expenses, and spending habits to calculate how much they’re comfortable lending you. The cleaner your finances = the stronger your borrowing power.
Your deposit size matters and here’s why:
A bigger deposit reduces risk for the lender, lowers your repayments, and can even unlock better interest rates. It also means you’ll owe less from day one.
LMI (Lenders Mortgage Insurance), simplified:
If your deposit is under 20%, most lenders will charge LMI — a one-off fee that protects them (not you) if you can’t repay the loan. The smaller the deposit, the higher the LMI cost.
Know your repayments early:
You need to estimate your monthly repayments before viewing property options. This will keep your search as realistic as possible and also keeps you from falling for something that is outside of your budget.
Mortgage First Home Buyer Basics
Pre-approval
Here’s what it is and why it matters. A lender will look at your income, expenses, debts, and credit score, then give you a conditional “yes” on how much you can borrow. It’s not the final loan, but it signals to agents you’re serious and helps you shop within a realistic price range.
Fixed vs variable rates
A fixed rate locks in your interest rate for a set period. Predictable, safe for budgeting, but less flexible.
A variable rate moves with the market. You might save when rates fall, pay more when they rise, and you usually get more flexible features.
Loan features to compare
Offset account: A bank account linked to your loan that reduces the interest you pay.
Redraw facility: Lets you pull back any extra repayments you’ve made.
Extra repayments: Ability to pay above the minimum and cut interest + loan term.
Fees: Upfront fees, ongoing fees, and exit costs that can add up fast.
Documents you’ll need
Make sure you have these ready: proof of identity, recent payslips, bank statements, tax returns, details of any debts or assets, and evidence of your deposit.
First-Time Buyer Help & Grants
What a first-time home buyer’s grant is — and how it works
A first-home buyer grant is basically the government giving you a cash boost to help you get into your first property. You don’t pay it back. You just have to meet the rules, buy the right kind of property, and apply at the right time. Simple.
Typical rules you need to check
Every state has its own fine print, but the big things to look at are:
Income caps: You can’t earn above a certain amount.
Property price caps: Your home has to be under a set value.
New vs established: Some places only offer grants for newly built homes but not for older ones.
Residency rules: You will usually need to move in and live there for a minimum period.
Where to get the correct, up-to-date info
Grant amounts change all the time, so the safest move is to check your state government housing website or the federal government’s first-home buyer page.
They will show you the current rules, who qualifies for it, and exactly how to apply.
Here are few timing tips so you don’t miss out
The grant often needs to be lodged before settlement or alongside your loan application. You need to do it early so you don’t get stuck chasing paperwork at the last minute.
Now, if you’re wondering how much first time home buyers get, the answer depends on your state’s rules and whether the property is new, off-the-plan, or established. Always check the current guidelines because amounts can change.
how to get started in real estate
What Keystart is
Keystart is a Western Australia loan program that lets you buy with a much smaller deposit than most banks normally require. It’s designed to make getting your first home less of a marathon.
Who it’s for — and why it helps
Keystart is mainly for first-home buyers who have steady incomes but haven’t built up a big deposit yet. If saving 20% feels impossible, this program can help you get in sooner instead of waiting years.
What to compare vs a regular bank loan
Keystart isn’t “better” or “worse” — it’s just different.
Before choosing, compare things like:
Interest rates: These may sit higher than standard bank loans.
Fees: Look at ongoing fees and any upfront charges.
Requirements: Keystart has its own income limits, property price caps, and rules about living in the home.
The goal is to see whether the trade-off (small deposit vs higher costs) works for you.
How to check eligibility and apply
Visit Keystart’s official website and run through their eligibility checklist. If you tick the boxes, you can apply online or chat to their team. Your broker can also guide you through it.
The Step-by-Step “Buying Your First Home”
- Set your budget and get pre-approval
Figure out what you can realistically afford, then get a lender to give you a conditional “yes” so you know your price range. - Shortlist suburbs and property types
Decide where you’d actually like to live — or what works best for your investment goals — and narrow it to a few areas and property styles. - Go to inspections and book building/pest checks
Walk through as many homes as you can. If you find “the one,” arrange professional checks so there are no nasty surprises. - Make an offer and negotiate
Put forward your offer and be ready to go back-and-forth on price, conditions, and settlement dates. - Sign the contract and pay the deposit
Once the seller accepts, you’ll sign everything and transfer the deposit to secure the property. - Final checks, insurance, and settlement day
Sort your home insurance, provide any last documents to your lender, and get ready for settlement — the day the home officially becomes yours. - Move-in checklist
Connect utilities, change locks if you want extra peace of mind, update your address, and start planning the fun stuff like furniture and décor.
Costs to Plan For (not just the price)
Upfront costs
It’s not just the deposit — there are a few extra bites to expect:
- Deposit: The chunk of money you put down first.
- Stamp duty/transfer tax: A government fee for buying property.
- Legal fees: Your conveyancer/solicitor handles the contract and paperwork.
- Inspections: Building and pest checks to make sure the place isn’t hiding problems.
- Loan fees: Application fees, valuation fees… the usual bank admin.
Ongoing costs
Once you own the home, you’ll have regular bills too:
- Council rates
- Insurance (home + contents if you want it)
- Maintenance (things break — they always do)
- Strata/body-corp fees if you buy an apartment or townhouse.
Keeping these in your budget upfront saves a lot of stress later.
Mistakes First-Timers Should Avoid
- Shopping before pre-approval: Looking at homes without knowing your borrowing limit is a fast track to heartbreak.
- Ignoring the total cost of ownership: The mortgage is only part of it, running costs add up.
- Skipping building/pest inspections: A cheap check now can save you thousands later.
- Not comparing lenders: Always compare at least 3 options or let a broker do it for you.
- Forgetting cooling-off periods and conditions: These protect you. Use them, understand them, and don’t rush past them.
Quick Checklist
A fast, no-fuss list to keep you on track from your first search to move-in day.
- Set your budget
- Get pre-approval
- Check what grants/programs you qualify for
- Shortlist homes and suburbs
- Go to inspections + book building/pest checks
- Make an offer & sign the contract
- Get final loan approval & organise insurance
- Settlement day
- Move in and set up your new home
Glossary
Deposit:
The cash you put down upfront when buying a home.
Equity:
The chunk of the property you actually own, basically the home’s value minus what you still owe the bank.
Conveyancer/solicitor:
The legal pro who checks your contract, handles the paperwork, and makes sure the property legally becomes yours.
Settlement:
The final handover day. Your lender pays the seller, the title changes to your name, and you get the keys.
Cooling-off period:
A short window after signing a contract where you can change your mind. The rules (and fees) vary by state.
See Also:
FAQs
Mortgage first home buyer: How do you choose the right loan and rate type?
Start with your budget and how stable you want your repayments to be. Fixed rates give you predictable payments; variable rates move with the market and usually offer more flexibility. Compare features (offset, redraw, fees) and look at at least a few lenders or ask a broker to shortlist options for you.
How much first time home buyers grant: What affects the amount and where do you check today’s figures?
Grant amounts change based on your state, the type of property (new vs established), and eligibility rules like price caps. Since the numbers update often, the safest way to know how much first home buyers get right now is to check your state government’s housing or revenue website.
Keystart first home buyers: Who qualifies and how is it different from bank loans?
Keystart is designed for buyers who don’t have a big deposit saved. It has its own income and property limits, and the deposit required is usually much lower than a regular bank loan. In return, interest rates and fees can differ, so it’s worth comparing both options.
First time home buyer guide: What are the exact steps from pre-approval to settlement?
The basic flow is:
- Set your budget and get pre-approval
- Shortlist suburbs and property types
- Inspect homes and arrange building/pest checks
- Make an offer and negotiate
- Sign the contract and pay the deposit
- Get final loan approval and organise insurance
- Settle the property and get your keys
