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FAQs for first home buyers

As a first home buyer, it’s natural that you’ll have hundreds of questions to ask. We’ve compiled the top ones below, but don’t be afraid to ask your Mortgage Choice broker. Their wealth of knowledge is there ready for you to tap into.


First home buyer FAQs

The amount you can borrow, commonly known as your borrowing capacity or borrowing power will be determined based on your unique set of financial circumstances. Your income, assets, liabilities and credit history can all affect your borrowing power. How much money you can borrow will also differ from lender to lender.

Our home loan calculator will give you an initial idea of how much you can borrow. Your local Mortgage Choice broker can give you a complete individual assessment of your situation.

Mortgage Choice brokers can help you find which of the hundreds of home loans offered by our panel of lenders will best suit your needs. Consider the questions in  Choosing the Right Home Loan to see which loan features are likely to be most important to you.

The deposit required depends largely on the type of home loan and, of course, the lender you select. As a general rule, if you are an owner-occupier you’ll require 5-10% of the purchase price as a deposit. If you are an investor, you’ll ideally require 10% of the purchase price, although it's possible to purchase with less.

Mortgage Choice has a savings calculator you can use to help you determine the amount you need to save each month and how long it will take to reach your desired deposit.

The First Home Owner Grant scheme is a one-off payment which varies by state or territory (from $7,000 up to $26,000) to assist eligible first home owners with purchase or construction costs. Find out if you are eligible for the grant.

As a basic rule, you are eligible if you are an Australian citizen or permanent resident, building your first home or buying a brand new property in Australia, with the intention of occupying it as your principle place of residence within 12 months of the settlement and living in it continuously for at least 6 months.

If you’re buying the property in conjunction with others, they must also meet criteria for the grant to be applicable.

Find out if you are eligible for the First Home Owners Grant.

 

Stamp duty is a state government tax based on a property's selling price. Each state or territory has different rules and calculations; some states offer discounts or exemptions to first home buyers. Stamp duty can be a significant additional cost when buying property.

Use our stamp duty calculator to get an idea of what you will need to pay.

 

Have another question? Contact us today and we'll see how we can help.

We have local experts available to help you with all things finance related. They'll make complicated easy and provide you with the information and advice you need to make the right decisions with your money.

We can assist you with your personal finances including your home loan, car loan and insurances and our financial advisers can help you plan to achieve your financial goals now and in the future. We can also help you organise finance to start or grow your business and fund your assets.

Contact one of our local experts today to see how we can help you. 


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We know how important it is for you to be able to trust the advice you are receiving from our experts.

Our home loan service comes at no cost to you because we get paid a commission by the lender when you settle a home loan. We then pay your broker but we do it differently from other mortgage brokers. Your Mortgage Choice broker gets paid the same rate of commission no matter which home loan you choose from our wide choice of lenders.

This makes sure they always have your best interests at heart.



Mortgage Choice was founded by the Higgins brothers over 25 years ago. They believed in giving Australians access to a choice of home loans, backed by expert advice to help them make the right choice. They were pioneers in mortgage broking and we've since helped over 400,000 people with their home loans.

Over the years, our passion for offering choice and advice has been extended to other areas of personal and business finance, including our industry leading financial planning service.


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