First Home Buyer Mortgage Broker in Sydney
Buy your first home in NSW with a clear budget, every grant and concession you qualify for, and a loan that fits. As a mortgage broker for first home buyers, we work out your deposit, borrowing power and government support before you start inspecting.
What to Settle Before You Start Looking
Your price range is set by three numbers: your deposit, your borrowing power and the concessions you qualify for. Working them out first stops you inspecting homes you cannot buy, or missing ones you can.
Pre-approval tells you a lender is comfortable with your income and savings. It stays subject to valuation and a final credit check, and it usually lasts around three to six months. As your Sydney mortgage broker, we tell you which conditions are still open before you rely on it.
Avoid applying with several banks at once. Each application is recorded on your credit file, and multiple enquiries in a short period can count against you with the next lender.
At auction in NSW there is no cooling-off period, so finance has to be in place before you bid. On a private treaty purchase, you have five business days to cool off, with 0.25% of the price payable if you withdraw.
Government Support for NSW First Home Buyers
Eligible buyers can combine several schemes. We check each one and factor it into your budget:
5% Deposit Scheme
The Australian Government's Home Guarantee Scheme lets eligible first home buyers purchase with a 5% deposit and no lenders mortgage insurance (LMI), up to a property price cap. Single parents may qualify with 2%.
Stamp Duty Relief
Under the NSW First Home Buyers Assistance Scheme, homes valued at $800,000 or less are exempt from transfer duty, with a concession between $800,000 and $1 million. Vacant land has lower thresholds.
First Home Owner Grant
A $10,000 grant for eligible buyers of a new home, subject to value caps: $600,000 for a new home or off-the-plan purchase, or $750,000 for land plus a build.
First Home Super Saver
The First Home Super Saver Scheme lets you save up to $15,000 a year, and $50,000 in total, through voluntary super contributions and withdraw it for a deposit.
Most schemes require you to move in within 12 months and live in the home for at least six months. Thresholds change, so we confirm current limits before you sign.
Ways to Fund Your Deposit
The right option depends on your savings, your family's position and how soon you want to buy:
20% Deposit
No LMI, the widest lender choice and usually the sharpest pricing. Takes longest to save.
5% to 10% With LMI
Buy sooner by paying lenders mortgage insurance, which can often be added to the loan. Most lenders want to see around 5% in genuine savings held for at least three months.
5% Deposit Scheme
Buy with 5% and no LMI through the government guarantee, if you and the property meet the eligibility rules.
Family Guarantee
A parent uses equity in their home as extra security, so you can buy with little or no deposit and avoid LMI. See our guarantor home loans.
Gifted Deposit
Family contributes cash towards the deposit. Lenders usually ask for a signed gift letter and may still want some savings of your own.
Building New
A new build can unlock the First Home Owner Grant and stamp duty relief on land. See our construction loans.
What Lenders Check Before They Approve You
Approval turns on a few tests, and most declines trace back to one of them:
Serviceability Buffer
The Australian Prudential Regulation Authority (APRA) requires banks to test repayments at 3 percentage points above the actual rate, which is why borrowing power often feels lower than expected.
Living Expenses
Lenders review three to six months of bank statements. Subscriptions, takeaway and buy now, pay later spending all show up and are counted.
Existing Debts
Credit cards count at their full limit, not the balance. HECS-HELP repayments and car loans also reduce borrowing power, so reducing limits before applying can help.
Employment
Most lenders want you past probation, though some accept new roles in the same field. Casual, contract and self-employed income each follow their own rules.
How the Process Runs From First Call Onwards
The steps stay the same on every file, though timing shifts with lender queues and how fast documents come back:
Mapping Your Position
We go through your income, savings, debts and spending, check your eligibility for every scheme and produce a realistic price range.
Comparing Lender Options
We match your position against lender policy across our panel and bring back the options that fit, with rate, fees and features such as offset accounts.
Securing Pre-Approval
We lodge the application and any scheme paperwork, then manage lender questions so you can make offers with confidence.
Coordinating Settlement
Once you have a property, we arrange formal approval and work with your conveyancer through to settlement day, including grant and duty applications.
Reviewing Your Loan
Once a year, we check your rate against the market. As your equity grows, we look at removing LMI-related pricing or a family guarantee.
None of this commits you to a lender, and no application is lodged until you have chosen one.
What This Costs You
Broker commission is paid by the lender that funds the loan. Any fee payable by you is set out in writing in our credit guide and credit proposal before you commit, and the first conversation carries no cost.
Beyond the deposit, budget for conveyancing, building and pest inspections, loan establishment fees and any stamp duty or LMI not covered by a concession. We give you the full cash figure, not just the deposit.
Trade-Offs Worth Knowing
Costs and risks worth weighing before you commit:
Small Deposit, Larger Loan
A 5% deposit means more interest over the loan's life and less equity if prices fall early on.
Scheme Conditions
Grants and exemptions can be clawed back if you do not move in or live there long enough. Plan before renting the property out.
Rate Rises
Test your budget at a higher rate. A repayment that only works at today's rate leaves no room for change.
Property Type
Small apartments and some high-density buildings attract tighter lending rules. Check before you fall for the property.
Why First Home Buyers Work With Us
DIY Lending is led by Di Yin and operates as a Corporate Credit Representative of Finsure Finance & Insurance Pty Ltd, Australian Credit Licence 384704. We are a member of the Mortgage and Finance Association of Australia and the Australian Financial Complaints Authority.
We hold access to more than 40 lenders and explain every step in plain language. We check each scheme and lender policy against your position before an application goes in, so you are not declined on something that could have been identified on the first call.
Our first home buyer mortgage broker work keeps every decision about your own money with you.
Know Your Buying Range Before You Inspect
Tell us your income, savings and where you want to buy. You will get a borrowing range, the schemes you qualify for and the total cash you need.
Call 02 8806 7258 or send your details through.
Frequently Asked Questions (FAQs)
How much deposit do I need for my first home?
Many lenders accept 5% plus purchase costs, with LMI payable unless you use the 5% Deposit Scheme or a family guarantee. A 20% deposit avoids LMI and opens up the most lenders.
Do first home buyers pay stamp duty in NSW?
Eligible first home buyers pay no transfer duty on homes valued at $800,000 or less, and a reduced amount between $800,000 and $1 million, under the First Home Buyers Assistance Scheme.
Can I get the First Home Owner Grant on an established home?
No. In NSW the $10,000 grant applies only to new homes, off-the-plan purchases and new builds within the value caps.
What is genuine savings?
Savings you have built or held yourself over time, commonly at least 5% of the price over three months. Some lenders accept a strong rental history instead.
Does a mortgage broker cost first home buyers anything?
Our service is paid by the lender through commission. Any fee payable by you is disclosed in writing before you commit.
Does HECS-HELP debt affect my borrowing power?
Yes. Lenders count compulsory HECS-HELP repayments as a commitment, which reduces the amount you can borrow. Some lenders treat a debt close to being repaid more favourably.
How long does pre-approval last?
Usually three to six months, depending on the lender. If your search runs longer, it can often be renewed with updated documents.
This page contains general information only. It does not take your objectives, financial situation or needs into account, and it is not a recommendation to enter into any credit contract. Grant, scheme and duty thresholds change, and eligibility depends on your circumstances. You may wish to speak with a qualified professional before acting on anything here.