First Home Buyer Q&A: Straight Answers to Common Questions
If you’re thinking about buying your first home, chances are you’ve got a lot of questions — and probably a bit of confusion too. You’re not alone.
Below are some of the most common questions first home buyers ask, with clear, honest answers to help you feel more confident about your next steps.
How do I know if I’m ready to buy my first home?
You don’t need to have everything figured out to be “ready”. A good starting point is having stable income, some savings, and a general idea of your financial position.
Speaking with a mortgage broker early can help you understand what’s possible now, and what you might need to improve if you’re not quite there yet.
How much can I actually borrow?
This depends on your income, expenses, debts, and lender policies. Online calculators can give rough estimates, but they often overestimate borrowing power.
A broker can give you a realistic figure based on current lender criteria, so you know your true budget before you start house hunting.
Do I really need a 20% deposit?
Not always. While a 20% deposit can help you avoid certain costs, many first home buyers are able to purchase with less through government schemes or specific lender options.
The key is understanding what’s available to you rather than assuming you need years more saving.
What first home buyer grants or incentives could I be eligible for?
This depends on the state you’re buying in, the property type, and your personal situation.
Incentives may include first home owner grants, stamp duty concessions, or low-deposit guarantee schemes. A broker can help you check eligibility and ensure nothing is missed.
When should I get pre-approval?
Ideally, before you start making offers or attending auctions. Pre-approval gives you confidence, shows sellers you’re serious, and helps avoid delays later.
It also helps you stay disciplined and avoid falling in love with a property outside your budget.
Is the lowest interest rate always the best option?
Not necessarily. A loan with a slightly higher rate but better features can sometimes save you more in the long run.
Things like offset accounts, flexible repayments, and lower fees can make a big difference over time.
What mistakes do first home buyers commonly make?
Some of the most common mistakes include:
- Waiting too long to seek advice
- Applying with multiple lenders
- Not budgeting for all buying costs
- Making big financial changes during the loan process
What happens after I find the right property?
Once your offer is accepted, you’ll arrange inspections, finalise your loan, and prepare for settlement. This is where having a broker guiding the process can remove a lot of stress.
They’ll manage lender communication and keep everything moving toward settlement day.
Do mortgage brokers cost extra?
In most cases, no. Mortgage brokers are typically paid by the lender, meaning there’s usually no upfront cost to you.
You receive expert guidance, loan comparison, and ongoing support without paying extra.
What’s the best first step I can take right now?
The best first step is a simple conversation. Understanding where you stand financially and what your options are can instantly reduce uncertainty.
