First Home Buyer

Buying your first home is exciting, but it can also feel like a lot to navigate at once. From deposits and borrowing power to government support and lender policy, there are many moving parts. At Novaseed, the focus is on helping you understand your options clearly, structure your application well, and move forward with confidence.

Clear guidance from first enquiry to settlement.

Buying your first home, with a clearer path forward

For many first home buyers, the biggest questions are not just whether they can buy, but how to do it well. How much deposit is enough? What will a lender look at? Are there grants or stamp duty concessions available? Is buying with 5% realistic? What happens after pre-approval?

These are important questions, and the right answer depends on your income, deposit, living costs, goals, and the type of property you want to buy.

Novaseed helps bring structure to the process. That means understanding your position early, identifying what support may be available, and presenting your application in a way that aligns with lender expectations.

What the market is showing

First home buyers remain active in the market, even as affordability continues to be a challenge.

31,783*


new owner-occupier first home buyer loan commitments were recorded in Australia in the December quarter of 2025.

9.1%*


annual growth in the number of first home buyer owner-occupier loan commitments in the year to December 2025. 

$19.3 billion*


in first home buyer lending value was committed in the December quarter of 2025, up 22.4% over the year. 

This tells us that first home buyers are still entering the market, but they are doing so carefully. In practice, that often means leaning on the right structure, understanding available support, and being realistic about location, property type and purchase timing. Affordability remains stretched nationally, with recent research showing the deposit hurdle and repayment burden are still significant for many households. 

*Source: Australian Bureau of Statistics

What is a first home buyer loan?

A first home buyer loan is simply a home loan used to buy your first property to live in. The loan itself may look similar to other owner-occupier home loans, but first home buyers can sometimes access government support, lower-deposit pathways, or lender policies designed to help them enter the market sooner.

Depending on your circumstances, this may include:

  • buying with a lower deposit

  • purchasing without paying Lenders Mortgage Insurance under an eligible government scheme

  • accessing stamp duty relief or grants

  • using savings accumulated through super under the First Home Super Saver Scheme

  • structuring the purchase with a family guarantor where appropriate

Not every option suits every borrower, which is why strategy matters just as much as product choice.

How much deposit do you need?

A 20% deposit is often seen as the traditional benchmark, because it can help borrowers avoid Lenders Mortgage Insurance and may open up a broader range of lender options. But for many first home buyers, a 20% deposit is not the only path.

The Australian Government’s 5% Deposit Scheme allows eligible first home buyers to purchase with a minimum 5% deposit, with no LMI and no income caps. Since 1 October 2025, the scheme has also moved to unlimited places, with no waiting list. 

Single parents and legal guardians may be able to buy with as little as a 2% deposit under the same program settings. 

A bigger deposit can still help improve borrowing strength, reduce repayments, and expand lender choice. But the right deposit target depends on your full position, not just a headline percentage.

Cost to plan for

The purchase price is only part of the picture. First home buyers should also plan for the upfront costs around the loan and property purchase.

Depending on the property and your circumstances, costs may include:

  • deposit

  • transfer duty or stamp duty, where applicable

  • conveyancing or legal fees

  • building, pest or strata reports

  • lender fees

  • valuation fees

  • registration and transfer costs

  • home and contents insurance

  • Lenders Mortgage Insurance, where applicable

Some of these costs may be reduced or avoided through government support, but they should still be mapped out early.

Government support that may be available

Support available to first home buyers can come from both the Australian Government and State Governments. The right mix depends on your income, deposit, property type and location.

Australian Government 5% Deposit Scheme

This scheme helps eligible buyers purchase a home with a lower deposit and without paying Lenders Mortgage Insurance. From 1 October 2025, the program expanded significantly and now offers:

  • a minimum 5% deposit for eligible first home buyers

  • no income caps

  • no LMI

  • unlimited places

  • access through participating lenders rather than direct application to Housing Australia

  • a broad range of property types, subject to location-specific price caps. 

It can also be used by eligible first home buyers purchasing with one other person, including a partner, friend or family member, provided both borrowers meet the criteria. 

First home super Saver Scheme

The First Home Super Saver Scheme allows eligible buyers to make voluntary super contributions to help save for a first home in a tax-effective way. Current settings allow up to $15,000 of eligible contributions per financial year, with a maximum of $50,000 across all years. 

This can be a useful savings strategy for some buyers, especially where cash flow is steady and the purchase horizon is still a little way off.

Help to Buy Scheme

The Australian Government’s Help to Buy scheme is a shared equity program designed to help eligible buyers bridge the gap between what they have saved and what they can borrow. It launched on 5 December 2025. 

Under the scheme:

  • eligible buyers may enter with a minimum 2% deposit

  • the Government can contribute up to 40% of the purchase price for a new home or 30% for an existing home

  • income caps apply at $100,000 for individuals and $160,000 for joint applicants and single parents

  • the property must be owner-occupied

  • stamp duty concessions and grants may still apply, but certain other home buyer assistance programs cannot be used alongside it. 

This option can be useful for buyers who have stable income and some savings, but need another path to make the numbers work.

NSW Support for first home buyers

For buyers purchasing in New South Wales, there are two major forms of support often worth reviewing.

Under the First Home Buyers Assistance Scheme, eligible first home buyers may receive:

  • a full transfer duty exemption for new or existing homes valued up to $800,000

  • a concessional transfer duty rate for homes above $800,000 and below $1 million

  • a full exemption for vacant land up to $350,000

  • a concessional rate for vacant land above $350,000 and below $450,000. 

Separately, the First Home Owner Grant (New Homes) in NSW provides $10,000 for eligible buyers of a newly built or substantially renovated home. For a newly built home, the purchase price must not exceed $600,000. For vacant land plus a building contract, the combined value must not exceed $750,000. 

How Novaseed can help

First home buyers often do not need more noise. They need clarity.

Novaseed provides structured guidance through the early decisions that shape the purchase journey: how much you may be able to borrow, what deposit pathway may be realistic, which forms of support may apply, and how to prepare a stronger application.

The focus is not just on finding a lender. It is on helping you understand the trade-offs, avoid common missteps, and move through the process with more confidence and less guesswork.

Clear advice. Strong structure. Calm execution. 

What the process usually looks like

  • We begin by looking at your income, deposit, living costs, liabilities, credit position and goals.

  • This includes identifying what may be realistic, what support may apply, and how different lenders may view your scenario.

  • A pre-approval can help you understand your likely budget range before you start making offers.

  • Once you know your position, you can search with clearer boundaries and more confidence.

  • When you find the right property, your conveyancer or solicitor should review the contract before you commit where possible.

  • After the property is confirmed, the lender assesses the full application, valuation and final documents.

  • Once the loan is formally approved and all parties are ready, the transaction settles and you take ownership.

A clear process tends to reduce stress, avoid rushed decisions, and make it easier to know what comes next.