Buying your first home is one of the biggest financial decisions you’ll ever make
… and it can feel overwhelming without the right guidance.
Between saving your deposit, navigating government grants, understanding stamp duty concessions and comparing home loan options, there’s a lot to get your head around.
At Finch Financial, we’ve helped hundreds of first home buyers across Sydney, including right here in Hurstville and the St George area, to take the stress out of the process and get into their first property with confidence.
This guide covers everything you need to know, from your first steps to settlement day.
Why use a mortgage broker as a first home buyer?
As a first home buyer, you might be wondering whether to go directly to your bank or work with a mortgage broker.
Here’s the difference:
- when you go to a bank, you only see their products
- when you work with a mortgage broker, you get access to dozens of lenders and you have someone in your corner who knows which ones are most likely to approve your application
A good broker will:
- Compare home loans from a wide panel of lenders on your behalf
- Explain government grants and concessions you may be eligible for
- Help you understand exactly how much you can borrow
- Handle the paperwork and liaise with lenders on your behalf
- Support you from pre-approval through to settlement
Our team acts as your home loan broker in Hurstville: local knowledge, genuine care, and access to competitive rates Australia-wide.
How to buy your first home in Sydney: a step-by-step overview
While every buyer’s situation is different, most first home purchases follow a similar path.
Here’s a quick overview:
1. Understand your borrowing capacity
Before you start browsing property listings, it’s worth getting a clear picture of what you can afford.
Your borrowing capacity depends on your income, expenses, existing debts, credit history and deposit size.
A pre-approval from a lender gives you a realistic budget and makes you a more credible buyer at auction or negotiation.
2. Save your deposit
Most lenders require a minimum deposit between 5 & 10% for owner-occupier home loans.
If your deposit is under 20%, you’ll typically need to pay Lenders Mortgage Insurance (LMI), which protects the lender if you default.
Some government schemes allow eligible first home buyers to purchase with as little as 5% without paying LMI -> more on that below.
3. Apply for pre-approval
Once you have a deposit target in sight, your broker will help you compare lenders and structure a pre-approval application.
This conditional approval confirms a lender’s willingness to lend up to a certain amount, subject to the property you purchase.
Pre-approvals are typically valid for 90 days.
4. Find your property and make an offer
With pre-approval in hand, you’re ready to start searching.
When you find the right property, your broker and conveyancer work together to ensure the purchase proceeds smoothly.
In Sydney’s competitive market moving quickly matters and having your finance ready gives you an edge.
5. Formal approval, settlement and beyond
Once your offer is accepted, your lender will formally assess the property and issue unconditional approval.
From there, your conveyancer handles the legal transfer and settlement is scheduled.
Your broker stays in touch with you throughout the process to keep things on track.
First home buyer grants and schemes in NSW
The NSW and federal governments offer a number of schemes to help first home buyers get into the market sooner.
Eligibility criteria apply to all of these, and they change periodically.
Your Finch Financial broker will confirm what you qualify for based on your specific situation.
1. First Home Owner Grant (FHOG)
Eligible first home buyers purchasing or building a new home in NSW may receive a $10,000 grant under the First Home Owner Grant scheme.
This grant applies to new homes only (not established properties) and is subject to a property price cap.
2. First home buyer stamp duty NSW: what you need to know
Stamp duty is one of the biggest upfront costs for any property buyer but first home buyers in NSW can access significant concessions.
Under current rules:
- Full stamp duty exemption applies to homes valued up to $800,000
- A partial concession applies to homes valued between $800,000 and $1,000,000
These concessions apply to both new and existing properties
This can save eligible buyers tens of thousands of dollars, money that can go towards your deposit, furniture or renovations.
Speak to your Finch Financial broker to confirm eligibility based on the current thresholds.
3. First Home Guarantee (federal scheme)
The federal government’s First Home Guarantee allows eligible buyers to purchase with a 5% deposit without paying LMI.
The government guarantees the remaining portion of the deposit (up to 15%), which means you can enter the market sooner without needing a full 20% deposit saved.
Places are limited each financial year.
Choosing the right first home buyer home loan in Sydney
There’s no single “best” home loan for first home buyers.
It depends on your goals, income stability and how much flexibility you want.
Here’s a quick overview of the main options:
1. Variable rate loans
Your interest rate moves with the market.
If rates fall, your repayments decrease. If rates rise, so do your repayments.
Variable loans typically offer more flexibility, including offset accounts and the ability to make extra repayments without penalty.
2. Fixed rate loans
Your rate is locked in for a set period (usually 1–5 years), giving you certainty over your repayments.
This can be valuable if you’re on a tight budget and want predictability.
At the end of the fixed term, the loan typically rolls to a variable rate.
3. Split loans
Many first home buyers opt for a split loan: fixing a portion of the loan for security while leaving the rest variable for flexibility.
Your Finch Financial broker can help you weigh up the options based on current rate conditions.
Learn more about our home loan options and how we help buyers find the right fit on our mortgage broker for first home buyers page.
Local expertise: first home buyer broker in Hurstville and beyond
Finch Financial is based in Hurstville and has deep knowledge of the Sydney property market, particularly in the St George region.
Whether you’re looking at homes in Hurstville, Penshurst, Kogarah, Beverly Hills or further afield, our team understands local property values, typical timeframes and what lenders look for in this market.
We work with first home buyers at every stage of readiness. Whether you’ve been saving for years and are ready to buy, or you’ve just started thinking about it and want to understand what’s possible.
There’s no pressure and no jargon, just practical, honest advice.
Our clients come to us from across Sydney, and we’re able to assist buyers purchasing anywhere in Australia.
That said, our roots are local and local knowledge makes a real difference when it comes to understanding your options.
Common questions from first home buyers:
1. How much deposit do I need as a first home buyer?
Most lenders require a minimum 5% deposit, though 10–20% is more common to avoid LMI. Government schemes like the First Home Guarantee can reduce this to 5% without LMI for eligible buyers.
2. Can I use the First Home Owner Grant as part of my deposit?
In most cases, the FHOG can contribute to your deposit but the specifics depend on the lender and your overall financial position. Your broker can clarify how best to use the grant in your application.
3. What costs should I budget for beyond the purchase price?
Beyond your deposit, budget for conveyancing fees, building and pest inspections, loan establishment fees, home and contents insurance, and moving costs. If you’re not eligible for the stamp duty exemption, that’s also a significant cost to factor in.
4. How long does pre-approval take?
Pre-approval timelines vary by lender, but typically range from 24 hours to a few business days once your broker has submitted a complete application. Having your documents ready (payslips, bank statements, ID) speeds this up considerably.
Ready to take your first step?
Buying your first home in Sydney is a big deal and you shouldn’t have to navigate it alone.
At Finch Financial, our team of experienced mortgage brokers is here to make the process clear, straightforward and as stress-free as possible.
Whether you want to understand what you can borrow, check your eligibility for government grants, or simply talk through your options, we’re happy to help, no obligation.
Contact us today to book a free consultation with a first home buyer broker in Hurstville or over the phone.