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Learn more →First Home Buyer Loans in Sydney
You've found the place, or you're close. Now the hard part — getting a lender to say yes, working out what you can actually borrow, and making sense of the grants and stamp duty rules. That's what we do, and it costs you nothing.
Who this suits
Most first home buyers come to us with the same knot of questions: how much deposit do I really need, will my income be enough, and what help is actually available. If any of the following sound like you, we can help:
- You've been saving hard but you're not sure whether it's enough to get over the line.
- You have a small deposit and want to understand your options, including guarantor structures.
- You're buying with a partner and your incomes or debts are different.
- You've been knocked back by a bank or told to "come back in six months".
- You're self-employed, on a contract, or working casual hours.
- You want to know what grants and stamp duty concessions you're entitled to before you commit.
What lenders look for
Every lender weighs the same four things, but they weight them differently. Knowing where each lender is strict — and where they're flexible — is most of the value of a broker.
Deposit and LVR
Your loan-to-value ratio (LVR) is the loan amount expressed as a percentage of the property's value. Put down a 20% deposit and your LVR is 80%, which is where most lenders are comfortable. Below 20% and you'll usually pay Lenders Mortgage Insurance (LMI). Some lenders will go to 95% LVR (a 5% deposit) for first home buyers; a few will go higher with a guarantor. The deposit itself usually needs to be genuine savings — money you've saved yourself — though there are exceptions for gifts and grants.
Genuine savings
Most lenders want to see at least 5% of the purchase price held as savings in your account for at least three months. This is called "genuine savings" and it proves to the lender that you can manage money. If your deposit is a gift from family, some lenders will accept it as genuine savings if it's been in your account for three months; others want a statutory declaration confirming the gift is non-repayable. A guarantor structure can bypass the genuine savings requirement entirely.
Income stability
Lenders want to see that your income is reliable. Permanent full-time employment with a clear payslip history is the easiest case. Casual, contract and self-employed income all work, but the lender will want more evidence — often two years, sometimes one, and the policies differ a lot. We'll match your income type to the lender that reads it most generously.
Credit history
A clean credit file makes everything simpler. A missed payment or a default doesn't always mean no — some lenders are more forgiving than others, and the age of the default matters. If you're not sure what's on your file, we can help you check it before you apply, so there are no surprises.
How much can you borrow
Borrowing power comes down to your income, your existing debts, your living expenses, and the interest rate buffer the lender applies. Most lenders now assess your loan at roughly 3 percentage points above the actual rate, to make sure you could still afford repayments if rates rise. That buffer has a real effect on how much you can borrow.
Here's a worked example to give you a sense of the numbers. These are illustrative only — your actual borrowing capacity depends on your full situation.
| Combined gross income | $140,000 |
|---|---|
| Existing monthly debts | $400 |
| Estimated living expenses | $3,800 |
| Dependents | 1 |
| Indicative borrowing capacity | ~$680,000 – $740,000 |
Indicative only. Actual capacity varies by lender, interest rate buffer, expense assessment and your full financial position.
The range above — not a single number — is the honest answer. Different lenders will return different figures for the same person, sometimes by more than $100,000. That's exactly the gap a broker closes.
NSW First Home Buyer Assistance Scheme
If you're buying your first home in NSW, the First Home Buyer Assistance Scheme (FHBAS) can save you a significant amount on stamp duty. The scheme applies to both new and established homes, and it works in two tiers.
For homes valued up to $800,000, eligible first home buyers pay no transfer duty at all. For homes valued between $800,000 and $1,000,000, you receive a concession — the duty ramps up on a sliding scale until you pay the full amount above $1,000,000. Above $1,000,000, no concession applies.
At the median Sydney house price, that exemption is worth tens of thousands of dollars. It's not automatic — you apply for it as part of the purchase, and you'll need to meet the eligibility rules: you (and any co-buyer) must be individuals, not companies or trusts; you must be over 18; and at least one applicant must be a first home buyer who will live in the home as your principal place of residence for at least six continuous months, starting within 12 months of settlement.
Worth knowing: the FHBas exemption and the First Home Owner Grant (FHOG) are two different things. The FHOG is a separate $10,000 grant available for first home buyers buying or building a new home valued up to $600,000 (or building on land you own, with the total up to $750,000). You can be eligible for one, both, or neither depending on what you're buying.
We'll help you work out which applies to your purchase and make sure the paperwork is lodged correctly.
Low deposit and guarantor options
If you don't have a 20% deposit, you have two main paths.
The first is to borrow above 80% LVR and pay Lenders Mortgage Insurance. LMI is a one-off premium that protects the lender, not you, if you default. It can be paid upfront or added to the loan. It's not cheap — on a $600,000 loan at 90% LVR it can be around $10,000 to $15,000 — but it gets you into a home sooner, and it's often cheaper than continuing to rent and save while prices move.
The second is a guarantor loan. A family member — usually a parent — uses equity in their own home as security for part of your loan, typically the portion above 80% LVR. Done well, this lets you buy with a small deposit and avoid LMI entirely. The structure limits the guarantor's exposure to a defined amount rather than the whole loan, and we'll make sure everyone understands exactly what's at stake before anything is signed. The guarantor can be released once your LVR drops below 80%, usually through a combination of repayments and property value growth.
Either way, you should never feel pressured. A guarantor arrangement is a big favour to ask and a real responsibility to accept. We'll explain it honestly to both you and your guarantor, including the worst case, so everyone decides with their eyes open.
What it costs you
Nothing. In almost every residential home loan, the lender pays us a commission for introducing the loan — an upfront commission and an ongoing "trailing" commission for as long as you hold the loan. You don't pay us a fee. We'll tell you exactly what commission we receive on your loan before you commit, in writing, as the law requires.
There's no catch to that model. The commission is the same structure whether you're a first home buyer or refinancing an investment portfolio. What it does mean is that you get the full benefit of comparing 60+ lenders without paying for the comparison.
What to prepare
To move quickly once you find the place, it helps to have these ready. Don't worry if some aren't to hand yet — we'll tell you exactly what's missing in the first chat.
- ID — driver's licence and passport, or another acceptable combination.
- Two most recent payslips (or, if self-employed, your last two tax returns and notices of assessment, plus recent BAS statements).
- Three to six months of bank statements for the account your savings live in.
- Statements for any existing debts — credit cards, personal loans, car finance, HECS balance.
- Rental history if you're currently renting (a letter from your agent or ledger statement).
- Proof of deposit source — especially if any of it is a gift.
- A rough list of your regular monthly living expenses.
Common questions
Often yes. Several lenders will go to 95% LVR for first home buyers, and a guarantor structure can take you higher. Below 20% you'll usually pay LMI, unless a guarantor covers the portion above 80%.
The $10,000 NSW First Home Owner Grant applies to buying or building a new home valued up to $600,000 (or building on land you own, with the total up to $750,000). Established homes don't qualify for the grant, but they can still qualify for stamp duty relief under FHBas.
Yes, with conditions. Most lenders want the gift in your account for at least three months, or a statutory declaration from the giver confirming it's non-repayable. Some lenders treat gifts differently to genuine savings — we'll match you to one that reads your situation fairly.
A decline from one bank is not a decline from the market. Lender policies differ enormously on deposit source, income type and credit history. We'll look at why you were declined and target lenders whose policy fits your situation.
Conditional pre-approval is often a few days once we have your documents. Formal (unconditional) approval typically takes one to three weeks, depending on the lender and how complete the paperwork is.
Yes. Pre-approval tells you your real budget, lets you bid or make offers with confidence, and signals to agents that you're a serious buyer. It's free and there's no obligation to proceed.
Let's find out what you can borrow
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