The First Home Buyer Resources You'll Actually Use

Most information for first home buyers repeats the same surface-level advice without explaining which parts actually matter for your situation.

What you actually need to know is how much you can afford to borrow, what deposit size unlocks which options, and which government programs apply when you're ready to move forward. Everything else is context around those three decisions.

Understanding Your First Home Buyer Budget Before You Start Looking

Your budget is determined by how much lenders will approve, not by what properties cost. Most people looking in Mount Eliza or surrounding areas calculate their borrowing capacity based on their income and existing commitments, then work backwards to determine what deposit they need.

As an example, someone earning $85,000 a year with no other debts might borrow around $500,000 to $550,000, depending on the lender and their assessment policies. If they have a $50,000 deposit saved, they're looking at properties up to $550,000. If they have $100,000, that range shifts to $600,000 to $650,000. The deposit changes what you can buy more than any other single factor.

In Mount Eliza, where median house prices typically sit above the regional average, understanding this calculation before you attend opens or start conversations with agents prevents wasted time on properties that don't fit your approval range.

Deposit Options: 5%, 10%, or Something Borrowed

You don't need a 20% deposit to buy your first home, but the percentage you provide determines your loan structure and upfront costs. With a 5% deposit, you'll likely need access to the First Home Loan Deposit Scheme or Regional First Home Buyer Guarantee, which replace the need for Lenders Mortgage Insurance by having the government guarantee part of the loan. With a 10% deposit, you'll pay LMI yourself unless you qualify for one of those programs. With 20% or more, LMI doesn't apply.

Consider a buyer purchasing a $600,000 property in Mount Eliza. A 5% deposit is $30,000, a 10% deposit is $60,000, and a 20% deposit is $120,000. If they use a 10% deposit without accessing a government guarantee, they might pay $15,000 to $20,000 in LMI, which gets added to the loan amount. If they qualify for the Regional First Home Buyer Guarantee with that same 5% deposit, they avoid LMI entirely and keep their upfront costs lower.

Some buyers also use a gift deposit from family to reach the 10% or 20% threshold. Different lenders have different policies on this, some requiring the money to be in your account for three months, others accepting a signed declaration that it's a genuine gift rather than a loan you need to repay.

First Home Buyer Grants and Stamp Duty Concessions That Apply in Victoria

Victoria offers a first home owner grant of $10,000 for new homes or substantially renovated properties valued up to $750,000. If you're buying an established home, you won't receive the grant, but you may still qualify for stamp duty concessions or exemptions depending on the property value.

For properties under $600,000, first home buyers in Victoria pay no stamp duty. For properties between $600,000 and $750,000, a concessional rate applies. Since many properties in Mount Eliza sit within or just above this range, the stamp duty saving can be $20,000 to $30,000, which makes a meaningful difference to your upfront costs or how much deposit you need to save.

These concessions don't apply if you've owned property before, even if it was an investment or you didn't live in it. The definition of first home buyer is specific: you can't have held a property interest in Australia or elsewhere at any point after turning 18.

Fixed or Variable Interest Rates When You're Just Starting Out

Your first home loan will offer a choice between a fixed interest rate, a variable interest rate, or a combination of both. A fixed rate locks your repayments for a set period, usually one to five years. A variable rate moves with the market, which means your repayments can increase or decrease depending on rate changes.

The decision often comes down to whether you value certainty or flexibility. Fixed rates give you predictable repayments, which helps with budgeting when you're adjusting to mortgage payments for the first time. Variable rates usually come with features like an offset account or redraw, which let you reduce interest by parking savings against the loan or access extra repayments if you need them.

Some buyers split their loan, fixing part for certainty and keeping part variable for flexibility. In our experience, first home buyers who expect their income to increase or want the option to make larger repayments without penalty tend to favour variable or split structures. Those who prefer knowing exactly what they'll pay each month often lock in a fixed rate, particularly during periods when rates are rising.

Getting Pre-Approval Before You Make an Offer

Pre-approval confirms how much a lender will let you borrow before you find a property. It's conditional on the property meeting the lender's criteria and your financial situation not changing, but it gives you a clear borrowing limit and shows agents and vendors you're ready to proceed.

The application requires proof of income, recent payslips, tax returns if you're self-employed, details of your savings history, and information about any debts or regular commitments. Most lenders assess your last three to six months of bank statements to verify your deposit is genuinely saved, not borrowed from another source.

In Mount Eliza, where some properties attract multiple offers, having pre-approval in place means you can move quickly when the right property comes up. Without it, you're asking the vendor to wait while you submit an application and hope for approval, which puts you behind other buyers who've already done that work.

First Home Super Saver Scheme: Accessing Your Super for a Deposit

The First Home Super Saver Scheme lets you make voluntary contributions to your super fund and later withdraw them, along with earnings, to use as a deposit. You can contribute up to $15,000 per year and withdraw a maximum of $50,000, plus associated earnings, which helps you build a deposit faster due to the tax benefits on super contributions.

If you're earning a moderate to higher income and have time before you want to buy, this can be worth considering. The tax benefit comes from contributions being taxed at 15% rather than your marginal rate, and withdrawals being taxed at your marginal rate minus 30%, which usually results in a net tax saving.

To access the scheme, you need to apply through the Australian Taxation Office, and the process takes a few weeks. It works when you're planning ahead, not when you've already found a property and need the funds immediately.

When you're ready to move forward with your first property, call one of our team or book an appointment at a time that works for you. We'll walk through your numbers, explain which programs you qualify for, and help you get your first home loan application in order.

Frequently Asked Questions