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First Home Buying FAQs
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Yes. Parents can give a cash gift, lend money, or act as guarantor by securing part of your loan against their home. A guarantee can help you avoid LMI, but your parents’ home is at risk if you can’t repay. A cash gift above the gifting limits can also reduce a parent’s Age Pension. I model each option for you and for your parents.
Over-borrowing, ignoring government grants, underestimating costs, and buying without cash buffers are common. Others lock into unsuitable loans or neglect long-term tax and super implications. Financial planners prevent these by mapping short- and long-term scenarios, so that home-buying decisions strengthen rather than weaken your financial position.
Planners coordinate loan structures, offset accounts, and repayment schedules with ongoing super contributions, insurance, and investments. The aims are to stop the mortgage from crowding out all other goals and ensure that wealth continues to grow in multiple areas while you service the loan effectively.
Some buyers choose rentvesting: renting where they want to live and buying an investment property elsewhere. It can give you rental income and tax deductions. But owning a property first can cost you first home buyer stamp duty relief and grants later. NSW stamp duty relief also requires you to live in the home. I compare both paths against your lifestyle, borrowing, and long-term goals.
Legal and conveyancing fees, building and pest inspections, loan setup fees, moving costs, and stamp duty (opens in a new tab) if you’re above the exemption threshold. LMI (opens in a new tab) also applies if your deposit is under 20% and you’re not using the 5% Deposit Scheme. Above the stamp duty threshold, these costs can add tens of thousands of dollars. I map them against your savings so you settle with a cash buffer left over.
A bank’s maximum loan (opens in a new tab) is not the same as a safe loan. Lenders test your repayments at a higher rate than the one you’ll pay. I go further and check the repayment against your budget, savings goals, super, and family costs. That way the mortgage leaves room for the rest of your life.
The First Home Super Saver Scheme (opens in a new tab) lets you make voluntary contributions to super and later withdraw them, with earnings, for a deposit. You can count up to $15,000 a year and $50,000 in total. Contributions from pre-tax salary are taxed at 15% instead of your marginal rate. I check whether the tax saving is worth the paperwork and the wait for release.
The 5% Deposit Scheme (opens in a new tab) lets you buy with a 5% deposit and no LMI. The First Home Buyers Assistance Scheme (opens in a new tab) removes stamp duty on homes up to $800,000 and reduces it below $1 million. The First Home Owner Grant (opens in a new tab) pays $10,000 towards a new home. The First Home Super Saver Scheme (opens in a new tab) lets you save part of your deposit in super. I check which you qualify for and how they combine.
Most lenders ask for 20% to avoid lenders mortgage insurance (LMI) (opens in a new tab). Under the Australian Government 5% Deposit Scheme (opens in a new tab), eligible first home buyers can buy with 5% and pay no LMI. Since 1 October 2025, the scheme has no income caps, and the Sydney price cap is $1.5 million. I compare buying sooner with a smaller deposit against saving longer for a larger one.
A planner helps structure savings, borrowing power, and government grants so you know exactly how much you can afford. They compare loan options, model repayment impacts, and ensure the purchase doesn’t undermine future goals like retirement savings or investment opportunities.