The short answer
People think there's one path: save up 20%, go to the bank, hope for the best. There are way more options than most people realise.
"How do I actually buy my first home?" is the question I get more than any other. The right pathway depends on where you're at right now: a 5% deposit under the First Home Guarantee, $0 deposit with a guarantor, gifted funds, or rentvesting from your parents' spare room. Here's every pathway in plain English.
Where to start, on camera. Everything below is the detail underneath it.
Which pathway is right for you?
20%+ saved?
No LMI needed. You're in a strong position
5–19% saved?
Buy now with LMI, or check if you qualify for the First Home Guarantee (5% deposit, no LMI)
Family can help?
Guarantor loan = $0 deposit, no LMI. One of the most powerful options out there.
Living at home rent-free?
Consider rentvesting: buy an investment property first, build equity, buy your place later
Step 1: Figure out what you can actually borrow
Before you start scrolling through Domain on the couch, get a pre-approval. This tells you exactly how much a lender will give you, based on your income, expenses, and debts. I've answered why your numbers come first in more detail, video included.
It costs nothing (if you come through me), and it means when you find the right place, you can move fast. Sellers take you seriously. Agents take you seriously. And you're not guessing.
I've seen people miss out on places because they hadn't sorted this first. Don't be that person.
Step 2: Your deposit (you've got options)
Most people think they need 20%. You don't. Here's what actually works:
Save it yourself (5%+ deposit)
You can buy with as little as 5% deposit. The catch? You'll pay Lenders Mortgage Insurance (LMI), a one-off fee that protects the lender because you're borrowing more than 80%. On a $500k property, that could be $8k–$15k. It's not ideal, but for a lot of people it's worth it to get in the market sooner rather than waiting another three years to save 20%.
Guarantor loan: $0 deposit
If your parents (or close family) own property, they can use a portion of their equity as security for your loan. You buy with zero deposit and skip LMI entirely. This is one of the most powerful tools out there for first home buyers and I set these up all the time. Your parents aren't giving you money. They're guaranteeing a portion of the loan, and once you've built enough equity, the guarantee gets removed. Full answer here, video included.
First Home Guarantee (government scheme)
Eligible first home buyers can purchase with as little as 5% deposit and no LMI. The government guarantees the gap between your deposit and 20%. And it got substantially bigger from 1 October 2025: the income caps are gone, and so is the limit on places, so there's no queue and no waiting for a new financial year. The full guide is here, including what the guarantee doesn't do.
Family Home Guarantee (single parents)
If you're a single parent buying your first home, there's a separate stream: the Family Home Guarantee. You can buy with just 2% deposit and no LMI. Same idea as above, but specifically designed for single parents and single legal guardians.
Bank of Mum and Dad / gifted funds
If family can gift you some cash toward a deposit, most lenders accept it. They just need a signed letter confirming it's a gift, not a loan. Simple.
Step 3: Grants and concessions
There are government grants and stamp duty savings that a lot of first home buyers don't even know about:
- First Home Owner Grant (FHOG): up to $10k–$30k depending on your state, but usually only for new builds or substantially renovated properties
- Stamp duty concessions: most states offer reduced or zero stamp duty for first home buyers under certain price thresholds. In NSW, for example, you pay no stamp duty on properties under $800k
- First Home Super Saver Scheme (FHSSS): you can withdraw voluntary super contributions (up to $50k) to put toward a deposit. Tax-effective way to save faster. Full answer on buying a home with your super, video included
Every state is different, and the rules change regularly. Part of my job is making sure you're not leaving money on the table.
Step 4: The rentvesting play
Here's one a lot of people don't think about. If you're living at home with your parents and paying little or no rent, why not buy an investment property first?
You get into the market now, build equity while property values go up, and a tenant pays most (or all) of the mortgage. You keep living at home, saving money, and when you're ready to buy your own place to live in, you've already got a property working for you in the background.
This is called rentvesting and it's one of the smartest moves I see young buyers make. You don't need to buy a $700k apartment in the city. You can buy a $400k house in a regional area that rents well and grows over time.
It's not for everyone. You need to be comfortable being a landlord (or getting a property manager), and you won't get the first home buyer stamp duty concession if you buy an investment property first. But for a lot of people living at home, it's the fastest way to start building wealth.
What a broker actually does for you
I compare a full panel of lenders, find the deal that fits your situation, handle the paperwork, and chase the banks so you don't have to. And it costs you nothing: I get to charge the bank for the work that I do, not you. Want to know more? Read about how I work.
More importantly, I explain everything in plain English so you actually understand what you're signing up for. No jargon. No guessing. Just a straight conversation about what's possible.
Stop overthinking it
The biggest mistake I see? People waiting too long because they think they're not ready. Meanwhile property prices keep going up and that deposit target keeps moving further away.
You don't need to have everything figured out. That's literally what I'm here for. Book a call, we'll look at your numbers, and I'll tell you straight where you stand and what your options are. No cost, and no rush on my end.
Which pathway fits you?
A 15-minute chat is enough to work out your borrowing power, which schemes may apply to you, and your next step, even if that step is "save for another six months".
No application, no credit check, nothing on your file. Just the numbers.
Common questions from first home buyers
How much deposit do I actually need?+
As little as 5% with the First Home Guarantee (or 2% for single parents under the Family Home Guarantee), or $0 with a guarantor loan. Most people buy with 5–10% and pay LMI. You don't need 20%. That's a myth that stops a lot of people from getting started.
What is LMI and can I avoid it?+
Lenders Mortgage Insurance is a one-off fee you pay when you borrow more than 80% of the property value. You can avoid it by saving 20%, using a guarantor, or qualifying for the First Home Guarantee. I'll run the numbers either way so you can see which option makes sense.
How does a guarantor loan work?+
A parent or close family member uses a portion of the equity in their property as additional security for your loan. They're not paying your mortgage. They're guaranteeing a chunk of the loan amount. Once you've built up enough equity (usually 80% LVR), the guarantee is removed and their property is released. It's one of the best tools for first home buyers and I set them up regularly.
What is rentvesting and should I do it?+
Rentvesting is when you buy an investment property instead of a home to live in. You rent where you want to live (or stay at home) and let a tenant pay the mortgage on your investment. It's a smart play if you're living at home rent-free and want to start building equity. The trade-off is you won't get first home buyer stamp duty concessions on an investment property. I'll walk you through both scenarios so you can decide.
Does using a broker cost me anything?+
No. I get paid by the lender when your loan settles. My service costs you nothing, and I compare a full panel of lenders to find the best deal for your situation. You're not limited to one bank's products.
How long does the whole process take?+
Pre-approval usually takes a few days. Once you've found a property and signed contracts, settlement typically takes 4–6 weeks. The biggest variable is how quickly you get your documents in. I'll give you a clear checklist upfront so there are no surprises.
Next question
The First Home Guarantee, explainedThe 5% deposit pathway in full, including what the guarantee doesn't do.
Related answers
How does a guarantor loan actually work? Why is my borrowing power so low? Buying your first homeGot a question this page didn't answer? Send it to me and it goes on the list.