First Home Buyer Loan Sydney
How Do We Help You Buy Your First Home in Sydney?
Step 1: How Much Can I Borrow and What Assistance Am I Eligible For?
Your borrowing power depends on your income, savings, living expenses and existing debts. You may also be eligible for government support such as the NSW First Home Buyers Assistance Scheme (FHBAS), the First Home Owner Grant (where applicable) and federal initiatives to reduce your upfront costs.
We’ll review your financial position to calculate your borrowing capacity, then check your eligibility for relevant grants and concessions. Many Sydney first home buyers are often pleasantly surprised to discover that they qualify for concessions or support they didn’t know existed. We’ll explain your options clearly and help you apply for any schemes that suit your borrowing goals.
Step 2: Which Home Loan Is Right for My Situation?
Not every lender assesses borrowers in the same way.
Some lenders are more flexible for self-employed applicants, while others may offer better options for professionals, growing families or buyers with smaller deposits.
Rather than sending you directly to one bank, we’ll compare a broad range of lenders to identify home loan options that suit your financial situation and long-term goals. We’ll also explain the differences between fixed and variable rates, offset accounts, redraw facilities and other loan features so you can make an informed decision.
Step 3: Should I Get A Pre-Approval Before Looking at Properties?
Yes. For most first home buyers, securing pre-approval before starting your property search provides you with greater confidence and a clearer budget.
We’ll prepare your application, review your supporting documents and lodge your pre-approval with a lender that best suits your circumstances. Whether you’re buying in Parramatta, the Hills District, the Inner West, the Northern Beaches or anywhere across Sydney, pre-approval gives you a clearer understanding of what you can comfortably afford before you make an offer or bid for a property at auction.
It can also strengthen your position with vendors by showing that you’ve already taken the first steps towards securing finance.
Step 4: What Happens Once I’ve Found My Property?
Once your offer has been accepted, we’ll continue managing your home loan through to settlement.
We’ll work closely with your lender, solicitor or conveyancer and other parties involved to keep everything progressing smoothly. If additional information is required, we’ll help you respond quickly to minimise unnecessary delays.
We’ll also assist with any grant applications, stamp duty concessions or other paperwork required before settlement so you can focus on preparing for your move.
Step 5: Will You Continue Supporting Me After Settlement?
Absolutely. Our relationship doesn’t end once your loan settles and you have bought your property. As interest rates change and your circumstances change, we’ll continue to review your home loan to ensure it remains competitive. If there are options to refinance or renegotiate your loan that can help to save you money or better support your financial goals, we’ll explain your options and guide you through the process.
Why Should I Use a Mortgage Broker When Buying My First Home in Sydney?
As a first home buyer facing Sydney’s property market, using a mortgage broker can give you clear advantages: access to a broad range of banks and lenders, guidance on first home buyer grants, schemes and concessions, support from your initial enquiry through to settlement, straightforward advice without confusing jargon, and ongoing loan reviews as your circumstances change.
Does It Cost Anything to Use a Mortgage Broker?
In most cases, no.
Engaging a mortgage broking service for first home buyer loans is generally provided at no direct cost to you. We’re paid a commission by the lender once your loan settles. That means you receive professional advice, lender comparisons and ongoing support without paying brokerage fees. (Standard lender fees and charges may still apply.)
Why Compare Multiple Lenders Instead of Going Directly to My Bank?
Every lender has different lending policies, approval criteria and loan features.
While your bank can only recommend its own products, we’ll compare a wide range of lenders to identify options that suit your needs. This can be particularly valuable if you’re self-employed, have a smaller deposit or simply want more choice before making such an important financial decision.
Will Someone Guide Me Through the Entire Home Loan Process?
Yes. One of the biggest concerns we hear from first home buyers is not knowing what comes next. We’ll explain every stage of the process in plain English, answer your questions and keep you updated from your first appointment through to settlement, so you always know where your application stands.
What Happens After My Home Loan Settles?
As your equity grows and your financial goals change, we’ll continue reviewing your loan to ensure it remains competitive. If a better option becomes available in the future, we’ll explain whether refinancing could help you save money or access additional features that better suit your needs.
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Frequently Asked Questions
To be eligible for a first-time home buyer loan, you must be an Australian citizen or permanent resident who has never purchased a home before as your principal place of residence, and are buying a property priced within specific value limits set by both state tax concessions and federal low-deposit programs.
Furthermore, you must intend to move into the home within 12 months of settlement and occupy it as your principal place of residence for a continuous 12-month period. Check out the government’s first home buyer scheme website, or chat to your mortgage broker.
Eligible first-home buyers in NSW pay no transfer (stamp) duty on properties up to $800,000. For properties between $800,000 and $1,000,000, a discounted rate applies on a rising scale. A separate transfer duty concession is also available if you’re buying a new property off-the-plan.
Eligibility depends on factors including the property’s value, how it will be used and whether you meet the NSW First Home Buyers Assistance Scheme requirements. We’ll explain exactly what concessions you may qualify for and ensure the necessary paperwork is completed before settlement.
Many first-home buyers purchase with a deposit of between 5% and 20%. Government schemes such as the First Home Guarantee allow eligible buyers to purchase with as little as a 5% deposit and without paying Lenders Mortgage Insurance (LMI), which is typically required on deposits under 20%.
You don’t need to save a 20% deposit before entering the Sydney market. Many buyers get in sooner. A larger deposit can reduce your borrowing costs, but it’s not always necessary to wait. We’ll help you understand your options based on your savings, borrowing capacity and the government assistance available.
How much you can borrow depends on your income, expenses and existing debts, but the First Home Guarantee scheme also caps how much you can spend on a property while still qualifying.
For Sydney, that cap is $1.5 million (as at 2026), and eligible buyers can purchase with as little as a 5% deposit. Your lender may also set its own maximum loan amount based on your circumstances. Your mortgage broker can calculate your maximum borrowing capacity and confirm which schemes you’re eligible for.
Loan pre-approval usually takes 2–5 business days, depending on how quickly documents are provided and the lender’s processing time. First home buyer grants and concessions are generally confirmed after you’ve signed the purchasing contract, and finalised closer to settlement. A specialist mortgage broker with experience in first-home buyer loans can help ensure there are no delays in these processes.
Yes. Pre-approval gives you a clearer understanding of your budget before you begin inspecting properties. This matters especially in Sydney, where auctions are common, and contracts are exchanged unconditionally on the day, with no cooling-off period. Having pre-approval in place beforehand means you can bid or make an offer with confidence. Most pre-approvals are valid for around 90 days, so timing it with your property search matters too.
To apply for a mortgage pre-approval, you must provide comprehensive documentation detailing your income, identity, current debts, and daily living expenditures.
You’ll often need to provide payslips or tax returns as evidence of income, along with bank statements to indicate savings and living expenses, plus details of any debts (such as credit cards, personal loans, car finance or HECS). Your mortgage broker will outline exactly what’s needed and will make sure everything is in order before submitting your application.
Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender, not you, if you default on your loan. It’s usually payable when you borrow more than 80% of a property’s value.
Many first-home buyers are surprised to learn they’re paying for insurance that protects the lender, not themselves, and that it can add a significant upfront cost to buying your first home. That’s why we’ll always explore ways to reduce or avoid LMI where possible. Some government schemes allow eligible buyers to purchase with a smaller deposit without paying LMI.
We’ll explain whether LMI applies to your situation and whether there are options to reduce or avoid it.
Whether you fix your rate, go variable, or a combination of both depends on your specific circumstances.
- Fixed-rate loans offer repayment certainty, with your rate locked in for a set period
- Variable-rate loans offer more flexibility and features, such as offset accounts and extra repayments
- Split loans combine both, letting you fix part of your loan and keep part variable
We’ll help you compare the advantages of each option before making a decision.
Yes, under the First Home Guarantee, eligible first home buyers can purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). This lets some buyers enter the Sydney market sooner rather than waiting to save a larger deposit. We’ll help you understand whether you’re eligible for the scheme and whether buying sooner makes financial sense for your situation.
Yes, it can. Lenders treat your compulsory HECS/HELP repayments as an ongoing expense when assessing your income, even though the debt itself isn’t treated like a personal loan or credit card debt.
Repayment rates are calculated as a percentage of your income and increase in bands as your income rises. This means higher earners see a bigger reduction in borrowing capacity. Many graduates don’t realise the impact until they apply for a home loan, so it’s something we assess early in the process.
Eligible first home buyers in Sydney can apply for federal first home buyer schemes, the NSW First Home Owner’s Grant, and the First Home Buyer Assistance Scheme. Eligibility criteria can depend on the size of your deposit, family or single-parenting status, disability and defence force service. Your first-home buyer mortgage broker can help identify which supports you can apply for.
The NSW First Home Owner Grant contributes $10,000 for newly built homes valued at up to $600,000 (or $750,000 vacant land plus building). The property cannot have previously been sold, used as a home or rented out. The buyer cannot have owned a home previously and must be an Australian citizen or permanent resident.
Possibly, but it depends on both buyers’ circumstances.
- Under the First Home Guarantee, both applicants must be first home buyers. If your partner has previously owned property, this can affect the whole application’s eligibility, even if you qualify individually.
- Other schemes and concessions, such as stamp duty exemptions, may have different requirements for joint purchases.
We’ll review your situation and explain which concessions and grants may still be available before you commit to buying.
Mortgage brokers have access to a wider range of lenders and loan products than you may be able to find yourself. They’re likely to find a competitive loan with features that suit your needs, and can use their negotiating skills to ensure you get the best rate for that product.
Your bank can only recommend its own home loans. A mortgage broker compares options across dozens of lenders, which can uncover better rates or features than your bank’s first offer, and using a broker typically costs you nothing, since brokers are paid by the lender rather than the borrower.