Buying Your First Home? Start With the Right Loan Strategy
Buying your first home is exciting, but getting your first home loan can feel overwhelming.
At Kandid Loans, we help first home buyers make sense of the borrowing process before they commit to a property.
Rather than simply looking at how much a bank may lend you, we take the time to understand your income, expenses, savings, existing commitments and home ownership goals. From there, we can help you explore suitable home loan options and understand what your next steps could look like.
Ready to understand your borrowing options? Talk to Kandid Loans today.
Your First Home Doesn't Have to Feel Complicated
There is a lot of information online about buying your first property. The challenge is knowing which information applies to your circumstances.
Your borrowing position can depend on factors such as:
Your income and employment
Existing debts and repayments
Living expenses
Your available deposit
Your credit history
The type and price of the home you’re contemplating.
Whether you’re buying alone or with others
Your eligibility for available government assistance
That’s why getting an understanding of your finances before you start seriously looking at properties can be valuable.
Kandid Loans can help you work through the numbers and understand the home loan process in straightforward language.
How Can a First Home Buyer Get Started?
You don’t necessarily need to have everything figured out before speaking with a mortgage broker.
A good starting point is understanding your borrowing capacity and realistic property budget.
1. Understand Your Financial Position
We’ll look at your income, regular expenses, existing financial commitments and savings to help establish where you currently stand.
2. Work Out Your Deposit
Your deposit is important, but it isn’t the only upfront cost to consider. Depending on your circumstances and the property, you may also need to account for costs such as government charges, conveyancing, inspections and lender-related costs.
3. Explore Your Loan Options
Different lenders have different lending policies. We can help you compare available loan options based on your circumstances rather than assuming one lender will suit everyone.
4. Check Potential Government Assistance
Eligible first home buyers may have access to government initiatives designed to make entering the property market easier.
Eligibility requirements and available programs can change, so it’s important to check the current rules before relying on a scheme when planning your purchase.
5. Get Ready to Buy
Once you have a clearer idea of your borrowing position, you can search for properties with a more realistic budget in mind.
6. Apply for Your Home Loan
When you’re ready to proceed, we’ll help you understand the application requirements and guide you through the process towards settlement.
How Much Deposit Is Required for a First-Time Home Buyer?
One of the first questions many first home buyers ask is:
“What is the minimum deposit required to buy my first home?”
There isn’t one deposit amount that works for every buyer.
Some buyers may have a larger deposit saved, while others may explore options that allow them to purchase with a smaller deposit if they meet specific lender or government scheme requirements.
However, saving a deposit is only part of the equation.
You also need to consider:
- Your borrowing capacity
- The purchase price
- Loan-to-value ratio (LVR)
- Potential Lenders Mortgage Insurance (LMI)
- Stamp duty or other government charges
- Conveyancing and legal costs
- Building and pest inspections
- Moving and initial property costs
The important thing is to understand the complete cost of buying—not just the deposit.
What Can First Home Buyers Borrow?
Your maximum borrowing amount isn’t simply based on your salary.
Lenders generally assess a range of factors when considering a home loan application.
These may include:
Income
Your regular income helps determine how much you may be able to repay.
Living Expenses
Your household spending can have a significant impact on your borrowing capacity.
Existing Debts
Credit cards, personal loans, car finance and other liabilities can affect your application.
Deposit
Your available savings can influence your loan-to-value ratio and overall borrowing position.
Employment
Your employment situation and income consistency may also be considered.
Credit History
Your credit profile can form part of a lender’s assessment.
This is why two people earning a similar income can potentially have very different borrowing capacities.
Buying Your First Home in Sydney or Baulkham Hills?
For buyers looking around Baulkham Hills and wider Sydney, understanding your budget before attending inspections can save you time and help you focus on properties that are realistically within reach.
Sydney property prices can vary significantly between suburbs, property types and locations.
A mortgage broker can help you look at the finance side of your purchase before you become emotionally attached to a property.
At Kandid Loans, we can help you understand your lending position so you can approach your first purchase with greater clarity.
Fixed vs Variable Home Loans for First-Time Homebuyers
Choosing a home loan isn’t only about finding the lowest advertised interest rate.
You also need to think about how you expect your financial situation to change.
Variable Rate Loan
A variable rate can change when the lender changes its interest rate. Depending on the loan, you may have access to features such as an offset account or additional repayments.
Fixed Rate Loan
A fixed rate keeps your interest rate fixed for an agreed period. This can provide repayment certainty during that period, although fixed loans may have restrictions and costs that you should understand before choosing one.
Which One Is Better?
There is no universal answer.
The right choice depends on your financial position, plans, risk tolerance and the loan features that matter to you.
Kandid Loans can help you compare available options and understand the differences before you make a decision.
Why Speak With a Mortgage Broker as a First Home Buyer?
Your first home loan can influence your finances for many years, so understanding your options before applying can make a difference.
A mortgage broker can help you:
- Understand your borrowing position
- Compare suitable loan options
- Explain different loan features
- Understand potential upfront costs
- Navigate the application process
- Prepare the information lenders may require
- Discuss refinancing or repayment considerations in the future
At Kandid Loans, our focus is on helping you understand the process rather than making it unnecessarily complicated.
What Documents May You Need?
When you’re preparing for a home loan application, having your documents organised can make the process smoother.
Depending on your circumstances, a lender may request documents such as:
- Identification
- Recent payslips
- Bank statements
- Savings history
- Tax returns or financial
- statements if you’re self-employed
- Details of existing loans and credit cards
- Information about your living expenses
- Evidence of your deposit or available funds
The exact documents required can vary depending on your employment, income and lender.
First Home Buyer Home Loan Checklist
Before making an offer on your first property, consider whether you have:
☐ Checked your borrowing capacity
☐ Worked out your available deposit
☐ Budgeted for upfront purchasing costs
☐ Considered your ongoing mortgage repayments
☐ Checked your eligibility for relevant government assistance
☐ Reviewed your credit position
☐ Compared available loan options
☐ Considered whether you need pre-approval
☐ Allowed room in your budget for unexpected expenses
A little preparation before you buy can help you avoid surprises later.
Your First Home Journey Starts With a Conversation
You don’t need to know everything about mortgages before speaking with a broker.
Whether you’ve just started saving, you’re actively looking for a property, or you’ve already found your first home, Kandid Loans can help you understand what your next financial step could be.
We’ll look at your circumstances, explain your options and help you navigate the home loan process with greater confidence.
Ready to Explore Your First Home Loan Options?
Speak with Kandid Loans today and take the first step towards owning your first home.
FAQs
Generally, a first home buyer is someone purchasing a residential property for the first time. However, eligibility can vary depending on the particular government scheme or concession you’re applying for.
There is no single deposit requirement for every first home buyer. The amount you need can depend on the lender, property value, loan structure and whether you qualify for an applicable government scheme.
Some eligible first home buyers may be able to purchase with a deposit of around 5% through certain lending arrangements or government initiatives. Eligibility conditions apply, so it’s important to check the current requirements.
The First Home Guarantee is a government initiative that may allow eligible first home buyers to purchase a home with a smaller deposit without paying Lenders Mortgage Insurance, subject to the applicable eligibility criteria, property price caps and program conditions.
Yes. A mortgage broker can help you understand your borrowing position and compare home loan options from lenders available to them, based on your circumstances and requirements.
Yes. Income is one of the factors lenders generally consider when assessing a home loan application. Your expenses, debts, employment and other financial circumstances can also affect your borrowing capacity.
Potentially. Some lenders and government programs may provide options for eligible borrowers with smaller deposits. However, a smaller deposit can have implications for LVR, LMI and your overall loan costs.
Depending on your circumstances and location, you may need to budget for government charges, conveyancing, inspections, lender fees, LMI where applicable, moving expenses and other property-related costs.
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