First home loans Australian buyers can actually understand

Under the Australian Government 5% Deposit Scheme, eligible first home buyers can buy with as little as a 5% deposit, and eligible single parents and legal guardians with 2%, without paying lenders mortgage insurance. Property price caps apply, for example $950,000 in Melbourne and Geelong and $650,000 in the rest of Victoria, and caps differ by state. Outside the scheme, most lenders want at least 5%, with LMI payable below 20%. You will also need money for stamp duty, legal fees and moving costs.

It depends on where you buy, because each state and territory has its own rules. In Victoria, for example, eligible first home buyers pay no stamp duty on homes valued up to $600,000 and receive a concession on homes valued up to $750,000, with conditions such as living in the property as your home for a set period. Other states and territories have their own exemptions and concessions. The rules can change, so we confirm the current criteria with you and your conveyancer before you commit.

Pre-approval, sometimes called conditional approval, is a lender's indication that it is prepared to lend you up to a certain amount, subject to conditions such as a satisfactory valuation. How long it stays valid depends on the lender, and it is commonly a few months. It is not a guarantee of final approval, but it gives you a clear budget and helps you move quickly when you find the right home.

Often, yes. Lenders look at how long you have been in your role or industry, how steady your hours are and whether your income is likely to continue. Some lenders are far more flexible than others with casual, contract or probationary employment. We match your situation to lenders whose policies suit it, which helps you avoid an unnecessary decline being recorded on your credit file.

For most home loans, yes. The lender pays us a commission when your loan settles, so you do not pay us for the advice or the application. Under the Best Interests Duty, we must recommend a loan that is in your best interests, not the one that pays us more. If a fee ever applies to your particular situation, we tell you upfront and in writing.

Yes. A family guarantee lets a parent or close relative use equity in their own property as extra security for part of your loan. It can help you buy with a smaller deposit and may avoid lenders mortgage insurance. Their property is at risk if you cannot repay, so everyone involved should get independent legal advice. We explain how each lender handles guarantees and how they can be released later.