How to Buy Your First Home — Every Pathway Explained

This is the question I get more than any other.

"How do I actually buy my first home?" People think there's one path — save up 20%, go to the bank, hope for the best. But there are way more options than most people realise, and the right one depends on where you're at right now.

Here's every pathway laid out in plain English. No jargon. No waffle.

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.

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%. With the latest RBA rate changes, timing matters more than ever.

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.

First Home Guarantee (government scheme)

The federal government lets eligible first home buyers purchase with as little as 5% deposit and no LMI. The government guarantees the gap between your deposit and 20%. Limited spots release each financial year, so timing matters. Income caps apply ($125k single / $200k couple).

Family Home Guarantee (single parents)

If you're a single parent buying your first home, there's a separate scheme — the Family Home Guarantee. You can buy with just 2% deposit and no LMI. Same idea as above, but specifically designed for single parents. Limited spots, so get in early.

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 (free money, basically)

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

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.

Step 5 — What a broker actually does for you

I compare 30+ lenders, find the best deal for your situation, handle the paperwork, chase the banks so you don't have to, and it costs you absolutely nothing. The lender pays me. 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. No pressure. Just a mate who knows mortgages.