5 Things Australian First-Time Homebuyers Should Know.

If you're buying property in Australia for the first time, here are five key things you should know:

1. Understand First-Home Buyer Incentives

The Australian government offers various incentives for first-home buyers, such as:

• First Home Owner Grant (FHOG) – A one-time grant that varies by state.

• Stamp Duty Concessions – Many states offer reduced or waived stamp duty for first-home buyers.

• First Home Guarantee (FHG) – Allows eligible buyers to purchase with just a 5% deposit without paying lenders' mortgage insurance (LMI).
  Check your state's government website for specific details.

  • If you don’t qualify because your income is over the scheme's specified limits, don’t worry; some lenders help high-income professionals in a similar way to how the FHG works and can help you save money on Mortgage Lenders Insurance, offer you the guidance of Buyers Agent to use, plus provide a competitive rate, to help you get into the property market when you do not have a large deposit.

2. Get Pre-Approval Before Searching

Australian lenders assess your borrowing capacity based on income, credit history, and expenses. A loan pre-approval helps you understand how much you can afford and shows sellers you're a serious buyer. Pre-approval does not guarantee that you’ll have a successful loan application, as many factors are involved, like the valuation of the property you purchase. Pre-approvals will start as a good guide, and you will better understand your borrowing power and be able to set a realistic budget.

3. Factor in Additional Costs

Beyond the property price, there are other expenses to budget for, including:

• Stamp duty (if applicable)

• Legal & conveyancing fees

• Building & pest inspections

• Lenders’ Mortgage Insurance (LMI) (if your deposit is below 20%)

• Council rates & strata fees (for apartments/townhouses)

4. Know the Differences Between Property Types

• Freehold (Torrens Title) – You own both the land and the house.

• Strata Title – Common in apartments and townhouses; you share ownership of common areas and pay body corporate fees.

• Leasehold – Less common, typically found in some Indigenous lands or government-owned properties.

5. Hire a Professional Advice to Guide You Through the Process: Conveyancer or Solicitor, Mortgage Broker, Accountant,

Buyer Agent and Financial Planner.

Property laws vary by state, and legal paperwork can be complex. A conveyancer or solicitor ensures that contracts are correct, searches for legal issues, and helps with settlement.

A mortgage broker will ensure that you will be educated throughout the whole process, will be able to offer you a choice of lenders that fit your unique situation, and will be able to request a discount for you on your chosen lender's advertised interest rate. At Best Foot Forward Mortgage Solutions, our fee is paid by the Lender after the property settlement, so you do not have to pay any up-front costs.

An accountant will ensure that your accounts are in order for the application process; this is especially relevant if you are self-employed. Accountants will also be able to educate you on any tax incentives available now and in the future.

If you can afford a Buyers Agent, they can be convenient in securing off-market properties, meaning you have more choice than the general public. They can also help ensure a discount on the property or better terms on the contract.

Financial Planners can help ensure that your finances are in order, particularly life insurance. This ensures that if something happens to you and you are unable to work in the future, your mortgage will still be able to be paid off, and you will secure your assets for you and your loved ones.

Bonus Tip: Research the Market & Be Patient

Australia’s property market can be highly competitive, especially in major cities like Sydney, Melbourne, and Brisbane. Research trends, attend inspections, and don’t rush into a purchase because of FOMO (fear of missing out). If you’d like to read a real estate update you can click on this link here.

If you’d like to book a 15-minute complimentary discovery call to discuss your unique situation, please click the link below.

The information contained is general information only and does not consider your personal objectives, financial situation and needs. We strongly recommend that you do not act on any information provided in this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.

Best Foot Forward always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.