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First home buyer guide: Your roadmap to buying sooner

Buying your first home is exciting—but it can also feel overwhelming. As a first home buyer, you’re navigating lenders, loan types, deposits, credit policies, and a maze of government grants and schemes. The good news? With expert guidance, clear steps, and the right strategy, you can move from “researching” to “settled” with confidence.

At Vanquish Finance Group, we help first home buyers in Thornbury and across Melbourne compare over 35 lenders, structure finance strategically, and unlock eligible concessions—so you get the right loan and buy sooner.

Why first home buying can feel complex

First home buyers

There is so many new things to learn including finance jargon

1. Deposit, LVR & LMI

  • Deposit size impacts your Loan-to-Value Ratio (LVR). A higher LVR may trigger Lenders Mortgage Insurance (LMI) unless you qualify for a government guarantee.
  • Smart strategies can stretch your deposit further (e.g., gift policies, FHSSS, co‑borrowers, parental guarantors, or shared equity).

2. Borrowing power & credit policy

  • Income types (base, commission, overtime, casual), debts (HECS/HELP, car loans, credit cards), dependants, and living expenses feed into lender calculators—each lender is different.
  • A well‑matched lender choice can materially increase borrowing capacity while still keeping repayments comfortable.

3. Interest rate vs. features

  • Don’t chase the lowest headline rate alone. Compare offset accounts, redraw, package discounts, fixed vs variable, and split loans. The right structure can save more over time than a small rate difference.

4. Property type matters

  • Established vs. new can affect FHOG eligibility.
  • Apartments may have lender restrictions (e.g., smaller sizes).
  • House & land or construction loans have progress payments and extra documentation.

5. Timing & cashflow

  • How funds are released (deposit, balance at settlement, FHOG timing, progress claims for construction) determines your short‑term cash flow plan.

6. Do I qualify for any of the Government Scheme’s and Grants

  • There are several Federal and State Government Scheme’s and Grants designed to help first home buyers enter the market sooner that can save you significant sums of money
Government Scheme's & Grants

The home loan process—step by step guide

Young first home buyer couple

There are numerous steps within each step

Step 1: Strategy session (pre‑assessment)

  • We map your goals, budget, suburbs, and timeframe.
  • We spot opportunities to use grants/schemes and identify potential hurdles early (credit fixes, deposit boosts, genuine savings, spending tweaks).

Step 2: Borrowing capacity & lender selection

  • We run multiple lender calculators to compare borrowing power.
  • We shortlist lenders for rate, features, policy fit, and turnaround time.

Step 3: Pre‑approval

  • We prepare and lodge your application with a targeted lender.
  • You get conditional approval so you can make confident offers.

Step 4: Property selection & valuation

  • Once you find the property, the lender orders a valuation.
  • We manage contract reviews, special conditions, and finance dates.

Step 5: Formal approval & settlement

  • We finalise documents, coordinate with your conveyancer, and schedule settlement.
  • If you’re building, we set up the loan for 5‑stage progress payments (base, frame, lock‑up, fixing, completion) and manage drawdowns.

Government Grants & Schemes for first home buyers

Eligibility criteria, price caps, income thresholds, property types, and timing can change. We confirm details for your specific situation and lender.

1. First Home Owner Grant (FHOG)

  • Aimed at buying or building a new home (not established properties).
  • Can often be paid at settlement or at first construction draw—timing depends on your lender and build contract.

2. First Home Buyer Stamp Duty Concessions (Vic)

  • Concessions or exemptions may apply depending on property value and whether you’ll live in the property as your principal residence.

3. Australian Government 5% Deposit Scheme

  • Allows eligible first home buyers to purchase with as little as 5% deposit. without paying LMI, using a government‑backed place through participating lenders.
  • The property must meet residence requirements.

4. Australian Government Help to Buy Scheme (Shared Equity)

  • A shared equity model where government contributes a portion of the purchase price in exchange for a shared stake, reducing deposit and loan size.
  • If available and applicable, we’ll assess pros/cons (impact on future equity, repayments, fees, and buy‑back rules).

5. Australian Government First Home Super Saver Scheme (FHSSS)

  • Let’s you make voluntary super contributions and then withdraw them to boost your deposit—subject to caps and ATO release rules.
  • Useful for disciplined saving and potential tax advantages.

6. Other pathways

  • Family/Parental Guarantee: Reduce LVR and avoid LMI by securing a portion of the loan against a guarantor’s property.
  • Builder/Developer incentives: Must be assessed carefully to ensure valuations and lender policy alignment.
Government Grants & Schemes

Construction loans for first home buyers (if you’re building)

Building takes time, however the outcome can make it worth it's while

There are 5 stage progress payments during construction

When building, your loan is drawn down in five stages:

1. Base/Slab: Groundworks and slab—first progress payment.

2. Frame: Structural frame goes up—second payment.

3. Lock‑Up: External walls, windows, doors—third payment.

4. Fixing: Internal fit‑out (plaster, cabinets, tiling)—fourth payment.

5. Completion/Practical Completion: Final finishes and certifications—final payment. For more information on construction loans

Key considerations for a first home buyer:

  • You only pay interest on the funds drawn, helping cash flow during the build.
  • Your fixed‑price building contract and building insurance are crucial for lender approval.
  • Valuations are based on “on‑completion” value; variations can impact lending.
  • We coordinate with your builder and lender so each claim is processed quickly and correctly.

How a mortgage broker makes a first home buyer’s life easier

Firstly, we have been through the process numerous times and cans the road ahead

1. Policy expertise

  • We translate nuanced lender rules (genuine savings, gift treatment, probationary employment, casual income, bonus/commission) so you choose a lender that will actually say “yes.”

2. Broad selection of lenders, we have access to 60 plus on our panel

  • One application, many options. We find competitive rates and features across our 60 lenders without you repeating paperwork across banks.

3. Unlocking Grants & Schemes

  • We identify eligibility, secure a guarantee place if available, and align your application so funds are released at the right time.

4. Strategic loan structuring

  • Offset vs. redraw, fixed vs. variable, or split loans—chosen to fit your timeline (owner‑occupier now, investor later), future family plans, and risk tolerance.

5. Stress‑free process management

  • We liaise with lenders, conveyancers, and builders; track milestones; solve snags quickly; and keep you updated at every step.

6. Long‑term support

  • We review your loan post‑settlement, help with rate negotiations, and advise when to refinance or restructure as your life changes.
First home buyers

Common pitfalls first home buyers can find themselves in

There is always light at the end on the tunnel

If you have the right professional on your team, they can help you avoid any potential pitfalls

  • Low pre‑approval confidence: Choosing the wrong lender or relying on informal “online estimates.”
  • Hidden LMI costs: Not factoring in LMI or missing a guarantee that could remove it.
  • Overlooking fees: Establishment fees, valuation fees, settlement fees, break costs (for fixed loans), ongoing package fees.
  • Contract traps: Short finance clauses, unrealist settlement terms and or contract terms, unconditional offers, or build variations that blow out budgets.
  • Cash flow missteps: Not planning for timing differences between deposit, FHOG, and settlement or build claims.

With us on your team, you can shop, bid and buy with confidence knowing your finances are sorted!

Get a pre-approval today and move forward with confidence.

Quick FAQs for first home buyers

A: With the First Home Guarantee, eligible buyers can purchase with as little as 5% deposit without LMI. Otherwise, aim for 10–20% to reduce costs. We’ll model scenarios for you.

A: For eligible new builds, many lenders can apply FHOG at settlement or the first construction draw—dependent on your contract and lender. We coordinate the timing.

A: Fixed offers repayment certainty; variable offers flexibility and access to features like offset. A split loan can blend both. We tailor the structure to your plan and risk profile.

A: Regularly saved funds over time in your account. Some lenders accept gifts or rent‑to‑save histories; others are strict. We match you to the right policy.

A: Valuation risk, sunset clauses, and completion dates matter. We’ll guide you on lender appetite, deposit strategy, and finance timing to protect your position.

Ready to buy your first home?

If you’re a first home buyer in Thornbury or greater Melbourne, we’ll simplify your path to ownership—mapping out the right lender, loan structure, and government schemes to help you buy sooner and smarter.

Book a free strategy call:

  • Borrowing power assessment across multiple lenders
  • Eligibility check for grants and guarantees
  • Tailored loan structure to fit your goals and timeline

Vanquish Finance Group — Transparent, client‑first, and here to make your first home purchase smooth and successful.