Key Points

How much can I borrow?

• Borrow up to 105% of the property value with a guarantor loan
• Borrow up to 95% of the property value without a guarantor
• Borrow up to 90%-100% with no LMI if you are a preferred industry professional such as doctors, lawyers, accountants, or sports professionals

Will I get approved?

• You need savings of at least 5%-10% of the purchase price
• You don’t need a deposit if you have a guarantor
• You can use a gifted deposit from your parents
• The First Home Owner Grant (FHOG) can contribute to your deposit

Interest rates available

• Competitive rates are available. Contact FS Loan to learn more

Lenders available

• Select bank and non-bank lenders are available. Contact FS Loan now to find out more

Getting into the property market as a first home buyer can feel overwhelming, especially when trying to save a 20% deposit.

However, with the right strategy, government initiatives, or family support, you can secure your dream home much sooner than expected.

At FS Loan, our mortgage experts specialise in low-deposit and no-deposit home loans. Below is your complete guide to getting approved.

What Is A First Home Buyer Loan?

A first home buyer loan is a specialised mortgage designed for people purchasing their first property. These loans often offer tailored incentives, including:

• Lower deposit requirements (as low as 5%)
• Discounted interest rates
• Access to government schemes that can waive Lenders Mortgage Insurance (LMI)

Unlike standard mortgages requiring 20% deposits, first home buyer loans remove the massive pain point of long-term savings, letting you enter the market faster.

How Much Deposit Do I Need for My First Home?

Typically, you need a deposit of 5%-10% of the purchase price. However, you can borrow up to 105% of the property value with a guarantor loan, even without personal savings.

Deposit Guidelines

Note: Preferred industry professionals (doctors, lawyers, accountants, sports professionals) can often borrow 90%-100% LVR with no LMI.

Can I Buy a House With No Deposit?

Yes. Buying a house with no deposit is possible. Common ways include guarantor loans and gifted deposits.

How Does a Guarantor Loan Work?

With a family pledge or guarantor loan, a family member uses the equity in their home as security.

This allows you to borrow up to 105% of the property price, covering the property plus extra costs like stamp duty and legal fees.

Using a guarantor also waives high LMI costs and often unlocks discounted interest rates.

Can I Use a Gifted Deposit from My Parents?

Parents can gift money for your deposit if they cannot act as guarantor.

Around 60% of first home buyers receive financial help from family.

Some lenders may require 5% in genuine savings depending on the loan structure.

Types of Mortgages Available for First-Time Buyers

Understanding mortgage structures helps manage repayments and long-term goals:

Variable Rate Loans

• Interest rate changes with market
• Offers flexibility, unlimited extra repayments, access to offset accounts

Fixed Rate Loans

• Interest locked for a period (1–5 years)
• Provides repayment certainty, but limits extra repayments and offset account use

Split Rate Loans

• Part fixed, part variable
• Combines certainty and flexibility

What is an Offset Account?

An offset account is linked to your Principal & Interest (P&I) loan.

Money in this account reduces your loan balance, meaning you pay interest only on the difference.

For first home buyers, it’s a fast way to reduce interest and pay off the mortgage sooner.

Government Grants and Schemes in 2026

First Home Guarantee (FHBG)

• Purchase a home with 5% deposit
• Government guarantees the remaining 15%, avoiding LMI costs

First Home Super Saver Scheme (FHSS)

• Make pre-tax contributions to superannuation to save for deposit
• Max releasable amount $50,000
• Highly tax-effective way to build your deposit

First Home Owner Grant (FHOG)

• One-off grant, typically $5,000–$20,000
• Usually applies to new builds or substantially renovated properties

Stamp Duty Concessions

• Many states offer stamp duty exemptions or significant concessions for first home buyers

How Do Upfront and Hidden Costs Affect Your Budget?

Consider these costs:

Lenders Mortgage Insurance (LMI)

• Required if deposit <20% (unless waived by scheme or guarantor)

Purchase Stamp Duty

• State tax based on property price

Conveyancing & Legal Fees

• Typically $700–$1,500

Registration Fees

• Government charge ~$200

Lender Setup Fees

• May apply, but brokers often get them waived

How Does Student Debt (HECS/HELP) Impact Borrowing Power?

• HECS/HELP debt reduces overall borrowing capacity
• Lenders factor repayments into Debt-to-Income (DTI) ratio
• You don’t need to pay off debt before applying but must declare it

5 Steps to Buying Your First Home

Step 1: Check Your Eligibility

• Speak to a broker about FHBG, FHOG, and stamp duty concessions

Step 2: Prepare Your Deposit

• Save 5%-20% or discuss guarantor loan or gifted deposit

Step 3: Get Home Loan Pre-Approval

• Important for auctions and bidding
• Ensures budget clarity and peace of mind

Step 4: House Hunting

• Search within pre-approved budget
• Avoid high-risk property types (studio <50sqm, unusual zoning, large land plots)

Step 5: Final Approval and Settlement

• Broker finalizes paperwork
• Convert pre-approval into formal approval
• Settlement day: receive keys

Ready to enter the property market sooner?

Our mortgage experts at FS Loan specialise in low-deposit home loans for first home buyers. Call today or complete a free assessment to find out exactly how much you can borrow.