First Home Buyer's Guide to Getting a Home Loan in Sydney

Buying Your First Home in Sydney

Buying your first home is one of the biggest financial decisions you'll make. Sydney's property market can feel daunting, but with the right preparation and guidance, the process is more manageable than you might think.

This guide walks you through the key steps — from saving your deposit to getting the keys.

Step 1: Work Out Your Budget

Before you start looking at properties, you need to understand what you can realistically afford. This means looking at:

• Your income and expenses — lenders will assess your ability to service the loan
• Your deposit — most lenders require at least 5–20% of the purchase price
• Upfront costs — stamp duty, conveyancing, inspections, and moving costs
• Ongoing costs — council rates, strata fees, insurance, and maintenance

A good starting point is our Repayments Calculator — plug in different scenarios to see what your monthly repayments would look like.

Step 2: Check Your Eligibility for Grants and Concessions

As a first home buyer in NSW, you may be eligible for:

• First Home Owner Grant (FHOG) — a $10,000 grant for new homes valued up to $600,000
• Stamp duty exemption — no stamp duty on existing homes up to $800,000
• Stamp duty concession — reduced duty on homes between $800,000 and $1,000,000
• First Home Guarantee — a federal scheme allowing you to buy with as little as 5% deposit without paying lenders mortgage insurance

These incentives can save you tens of thousands of dollars. We help our clients identify every concession they're entitled to.

Step 3: Get Pre-Approved

Pre-approval (also called conditional approval) gives you a clear idea of how much a lender is willing to lend you. It's not a guarantee, but it:

• Shows real estate agents you're a serious buyer
• Gives you confidence to bid at auction
• Helps you focus your property search on homes within your budget

Pre-approval typically lasts 3–6 months and can be arranged through a mortgage broker at no cost to you.

Step 4: Find the Right Loan

This is where most first home buyers feel overwhelmed. There are hundreds of loan products across dozens of lenders, each with different rates, features, and fees. Key decisions include:

• Fixed vs. variable rate — fixed gives you certainty, variable offers flexibility
• Principal and interest vs. interest only — P&I builds equity faster, IO keeps repayments lower initially
• Offset accounts and redraw — features that can save you thousands in interest over the life of the loan

A mortgage broker compares options across 30+ lenders to find the right fit for your situation — and you pay nothing for the service.

Step 5: Make an Offer and Exchange

Once you've found the right property:

1. Make an offer or bid at auction
2. Exchange contracts — your solicitor or conveyancer handles the legal paperwork
3. Pay the deposit — usually 5–10% at exchange
4. Arrange formal loan approval — your broker submits the full application to the lender
5. Settlement — typically 4–6 weeks after exchange, when ownership officially transfers to you

Common Mistakes to Avoid

• Not getting pre-approved before searching — you risk falling in love with a property you can't afford
• Only comparing interest rates — fees, features, and flexibility matter too
• Forgetting about upfront costs — stamp duty alone can be $20,000+ in Sydney
• Not using a broker — going directly to one bank means you only see their products, not the full market

How We Can Help

We've helped hundreds of first home buyers across Sydney navigate the process from start to finish. We'll help you understand your borrowing power, identify grants you're entitled to, and find the most competitive loan from our panel of 30+ lenders.

Best of all, our service costs you nothing — we're paid by the lender when your loan settles.

Book a free consultation to get started.