New South Wales (NSW)
- First Home Buyers Assistance Scheme: Provides full or partial stamp duty exemptions on homes valued up to $1,000,000.
- Shared Equity Home Buyer Helper: A specialized program for single parents, older singles, and key workers.
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Your First Home Buying Journey: From Saving to Settlement
Buying your first home is one of the most significant milestones you will ever achieve. However, for many Australians aged 28 to 35, the excitement of property ownership is often mixed with questions about affordability, borrowing capacity, and whether a deposit is actually within reach.
At Funding Nest, we specialize in turning that uncertainty into a clear, actionable plan. Whether you are a single professional in Sydney or a couple looking for a backyard in Perth, our goal is to simplify the complex lending landscape and help you move into your first home sooner.
How Much Can I Actually Borrow? Understanding Affordability
The most common question we hear is: "How much can I afford?" In today’s market, borrowing capacity isn't just about your salary; it’s about your overall financial health. Lenders look at your "Serviceability," which is your ability to meet loan repayments while maintaining a comfortable lifestyle.
Factors That Influence Your Borrowing Capacity:
1
Income vs. Expenses: Lenders review your discretionary spending. Tightening your budget for 3-6 months before applying can often improve your standing.
2
Existing Debt: Credit cards (even if the balance is zero) and HECS/HELP debts are factored into your capacity.
3
Interest Rate Buffers: Banks apply a "floor rate" higher than the current market rate to ensure you can still afford the loan if rates rise.
We help you look at the big picture, ensuring you don’t just get a loan, but a loan that fits your life.
Ready to find your number? [Book your free consultation] with our team today.
Bridging the Savings Gap: Do I Need a 20% Deposit?
The "20% deposit rule" is a common myth that keeps many first-home buyers on the sidelines. While a larger deposit helps avoid Lenders Mortgage Insurance (LMI), there are several ways to enter the market with as little as 5%—or even 0% in specific cases.
If your savings aren’t growing as fast as property prices, you aren't alone. Between rising rents and the cost of living, saving $100,000+ is a challenge for most Australians. This is where government incentives and strategic lending come into play to bridge the gap between what you have and what you need.
First Home Owner Grants (FHOG)
In addition to stamp duty savings, most states offer a one-off cash grant known as the First Home Owner Grant (FHOG). This is generally reserved for those buying or building a new home.
| State | Grant Amount | Property Type |
|---|---|---|
| NSW | $10,000 | New homes up to $750k |
| VIC | $10,000 | New homes up to $750k |
| QLD | $30,000 | New homes up to $750k |
| WA | $10,000 | New homes (various caps) |
Confused about which scheme applies to you? [Contact us] to speak with a specialist who knows your local market.
Australian Government Schemes: State-by-State Guide
The Australian government offers various programs to help first-home buyers reduce upfront costs. Most states offer Stamp Duty Concessions (where you pay less or no tax on the purchase) and the First Home Guarantee (FHBG), which allows you to buy with a 5% deposit without paying LMI.
View state-by-state programs
Victoria (VIC)
- Stamp Duty Exemption/Concession: No stamp duty on homes up to $600,000, with a sliding scale up to $700,000.
- Victorian Homebuyer Fund: A shared equity scheme where the government contributes up to 25% of the purchase price.
Queensland (QLD)
- Transfer Duty Concession: First home buyers pay no stamp duty on homes up to $700,000.
- First Home Owner Grant: Currently offers $30,000 for those building or buying a brand-new home.
Western Australia (WA)
- First Home Owner Rate: Reduced stamp duty for purchases up to $600,000.
- Keystart: A state-initiative loan program that offers low-deposit options with no LMI.
South Australia (SA)
- Stamp Duty Relief: SA recently abolished stamp duty for first home buyers purchasing new homes (subject to price caps).
- HomeStart Finance: Offers low-deposit loan options specifically for South Australians.
Tasmania (TAS)
- Stamp Duty Concession: A 50% discount on property transfer duty for established homes valued up to $750,000.
Northern Territory (NT)
- Homebuyer Subsidy: Various grants are available for those building or buying new homes to encourage territory growth.
Australian Capital Territory (ACT)
- Home Buyer Concession Scheme: The ACT uses an income-based model rather than a property-value model for stamp duty concessions.
The "Bank of Mum and Dad": Parental Guarantees
If you have a steady income but haven't saved a full deposit, a Parental Guarantee (or Family Guarantee) can be a game-changer.
This allows a family member to use the equity in their own home as security for a portion of your loan.
- Benefit 1: You can buy with a 0% to 5% deposit.
- Benefit 2: You avoid paying Lenders Mortgage Insurance (LMI), which can save you $10,000 to $30,000 upfront.
- Benefit 3: You can enter the market years earlier than you would if you were saving alone.
Hidden Costs: What Else Should I Budget For?
Your deposit isn't the only cost to consider. To avoid "bill shock" at settlement, you should set aside funds for:
View the checklist
- Building and Pest Inspections: Essential for ensuring the home is structurally sound ($500–$1,000).
- Conveyancing/Legal Fees: To handle the legal transfer of the property ($1,500–$2,500).
- Mortgage Registration and Transfer Fees: Government fees to register the change of ownership.
- Home Insurance: Usually required by lenders before the loan settles.
- Council and Water Rates: You will likely need to reimburse the seller for the remainder of the quarter.
Why Choose Funding Nest for Your First Home?
Navigating the Australian property market is complex, but you don't have to do it alone. At Funding Nest, we provide a structured, stress-free path to ownership. We don't just find you a loan; we find you a future.
We help you compare hundreds of products from a wide panel of lenders, ensuring we find the one that maximizes your borrowing power while keeping your repayments manageable.
Take the First Step Today
Your property journey starts with a conversation. Let’s sit down (virtually or in person) to discuss your goals, calculate your capacity, and see which government grants you qualify for.
Disclaimer: Eligibility for government grants and schemes is subject to state-specific criteria and change. Funding Nest provides information based on current legislation but recommends seeking independent legal and financial advice.
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