First home buyers

Most lenders accept a 5% deposit if you qualify for the First Home Guarantee (FHBG), which waives Lenders Mortgage Insurance. Without the FHBG, plan for 20% to avoid LMI, or 5-10% plus LMI of roughly 2-4% of the loan amount. You'll also need 2-5% on top for stamp duty, conveyancing and inspection costs.

The FHOG is administered by each state and territory. NSW: $10,000 for new homes under $750,000. VIC: $10,000 (or $20,000 regional) for new homes under $750,000. QLD: $30,000 (boosted) for new homes only. WA: $10,000 for new homes under $750,000 metro / $1m regional. SA: $15,000 for new homes under $650,000. TAS: $30,000 for new homes. The grant only covers newly built homes in most states.

Often no, or much less than other buyers. NSW abolishes stamp duty for first home buyers under $800,000 with a sliding concession to $1m. VIC waives it under $600,000, sliding to $750,000. QLD has a First Home Concession with thresholds up to $700,000 (full exemption typically under $550,000). WA exempts up to $450,000. Always check current thresholds with the state revenue office before you make an offer.

LMI protects the lender — not you — if you default on the loan. It typically applies when your deposit is less than 20% of the purchase price. The cost ranges from roughly 1% of the loan for a 15% deposit up to 4-5% for a 5% deposit. LMI is waived under the First Home Guarantee, the Family Home Guarantee and the Regional First Home Buyer Guarantee.

The First Home Guarantee (FHBG) lets eligible first home buyers buy with a 5% deposit and no LMI. The federal government guarantees up to 15% of the loan, so the lender treats it as if you had a 20% deposit. Income caps apply ($125k singles, $200k couples). Property price caps vary by city. Places are limited each financial year and are allocated through participating lenders.

The FHSSS lets you make voluntary contributions to your super (up to $15,000 per year, $50,000 total) and withdraw them later for a first home deposit. Because super is taxed at 15% (versus your marginal income tax rate), you save tax on the contributions. You need to apply for a determination from the ATO before signing a contract.

Yes. Conditional approval (often called pre-approval) tells you what a lender will lend you based on your income and expenses, subject to property valuation. It's not legally binding but it shapes what you can credibly bid on and is a prerequisite for most auctions. Most pre-approvals are valid for 3-6 months.