Unlock the door to your first home with our first home buying guide

Buying your first home is an exciting milestone—but it can also feel like navigating a maze blindfolded. From saving your house deposit to understanding eligibility for government schemes, many first-home buyers feel overwhelmed and ready to give up before they even begin.

This first home buying guide will help you understand how to use your superannuation, access available support schemes, and prepare financially for the buying process. Whether you’re saving through the First Home Super Saver Scheme (FHSS) or exploring First Home Guarantee Scheme eligibility, this guide will walk you through everything you need to know. 

Understanding the first-home buying process

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Buying a home for the first time involves several steps—from saving and budgeting to settlement. Here’s a general outline of what to expect:

Step #1: Set your budget

Assess your income, ongoing costs and outstanding debts. Determine how much you can afford for your deposit and mortgage repayments.

Step #2: Save your deposit

Aim for at least 5–20% of your desired property’s purchase price. Schemes like the First Home Guarantee can help you buy sooner with a smaller deposit.

Step #3: Research and compare home loans

Speak with a mortgage broker to find a home loan that suits your financial circumstances. Different lenders offer different interest rates and features.

Step #4: Start your property search

Work with trusted real estate agents to find suitable residential property options within your budget.

Step #5: Make an offer and sign a contract

Once you’ve found the right property, your lender will arrange a valuation and approval process.

Step #6: Pre-settlement checks

Organise pest and building inspections, check electrical safety, and ensure you’re satisfied before the settlement date.

Step #7: Settlement

The final step — ownership officially transfers to you, and your new chapter begins.

Common mistakes and challenges to avoid when purchasing your first home

Buying your first home involves more than just saving the deposit. Even with careful planning, first home buyers can fall into some avoidable traps, which we’ve highlighted for you below.

Challenge	Impact
Struggling to save a 20% deposit	Delays entry into the market by years.
Navigating complex loan options without expert advice	Leads to confusion and missed opportunities. There’s also a risk of higher interest rates or unsuitable loan structures, and paperwork can be stressful and time-consuming.
Failing to understand government schemes	Many buyers miss out on grants and concessions they’re eligible for.
Misbudgeting ongoing costs	Be prepared for mortgage repayments, stamp duty and legal fees, building and contents insurance, rates, utilities, strata fees, and potential maintenance or repair costs.
Misjudging market conditions	With limited new stock and high demand, buying sooner could mean securing a better deal before prices increase.

Comparing government support schemes

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There are several government schemes designed to make buying your first home easier. 

Australian Government 5% Deposit Scheme – Federal 

From 1 October 2025, the HGS has been turbocharged:

• No income caps

• No place limits – anyone with a 5% deposit can apply

• No Lenders Mortgage Insurance (LMI)

• Higher property price caps – up to $800,000 in regional NSW and $1.5M in most major capital centres.

Scheme	Deposit Required	Max Property Price (Regional NSW)	LMI Waived?
First Home Guarantee	5%	$800,000	✅
Family Home Guarantee (Single Parents)	2%	$800,000	✅

NSW First Home Buyer Assistance

These savings can add up to $30,000 or more, making a huge difference to your upfront costs.

Scheme	Benefit	Eligibility
First Home Owner Grant (FHOG)	$10,000 for new homes	Property ≤ $600K (or $750K for house & land)
First Home Buyers Assistance Scheme (NSW)	Full exemption up to $800K	Must live in the home for 12 months

Other Schemes

Scheme	Benefit	Eligibility
Help to Buy (Shared Equity)	Government co-purchases up to 40% of your home	Income limits apply
First Home Super Saver Scheme	Save a deposit through super with tax benefits	Must be 18+, never owned property

 Saving for your home deposit through superannuation

As mentioned above, the First Home Super Saver Scheme (FHSS) allows first home buyers to use part of their superannuation savings to buy their first property. This scheme helps you grow your home deposit faster through eligible voluntary contributions that benefit from lower tax rates.

You can make voluntary contributions to your super fund through either:

• Concessional contributions (before-tax contributions, such as salary sacrifice)

• Non-concessional contributions (after-tax personal payments)

These contributions, plus associated earnings, can later be withdrawn to use towards your house deposit. You can apply for a maximum release amount of up to $50,000 (as of 2025).

This option comes with a few key benefits, including: 

• Tax advantages: Concessional contributions are taxed at 15%, which may be lower than your marginal assessable income tax rate.

• Faster savings: Super funds often generate deemed earnings, helping your deposit grow.

• Structured saving: Contributions are automatically set aside and not easily accessed for everyday spending.

Case study

Let’s meet Richard and Giverny (names may be changed for privacy), a couple with two kids. They saved $90,000 and came to Watson Mortgages looking to buy their first home. It took them some time to set a budget and save a deposit.

With our help, Richard and Giverny:

• Accessed the Home Guarantee Scheme with above the minimum requires 5% deposit.

• Qualified for stamp duty exemption.

• Found a home in Cessnock under the price cap.

• Got pre-approved with a Participating lender.

“Very helpful. Allowed my wife and I to achieve our goals of buying our first home.” — Richard.

“Nestor from Watson Mortgages helped us get out of the rent market and into our dream home. A very knowledgeable gentleman who made us feel comfortable when making the biggest purchase of our lives. Thanks again!” — Giverny.

Their story is proof: you don’t need to do this alone. At Watson Mortgages, we believe your home-buying journey should be exciting, not exhausting, and if you’re a first-home buyer, we don’t just want to help find you a loan—we want to help you build a future. 

Here’s how we can help: 

✅ Local expertise in Newcastle, Maitland, Singleton, and the Central Coast.

✅ Access to over 30+ lenders. More options, better rates, and tailored solutions. 

✅ Personalised guidance through every scheme. We’ll maximise grants, avoid LMI, and reduce upfront costs.

✅ Fast pre-approvals and clear communication. From pre-approval to settlement, we’re with you every step of the way. 

Let’s turn your dream into a plan—and your plan into a home

Buying your first home is a major life decision, and understanding the available first-home buyer guidelines can make the process smoother and more rewarding. At Watson Mortgages, we help first-home buyers across Newcastle, Maitland, Singleton, Sydney, and the Central Coast to navigate the entire buying process — from confirming scheme eligibility and managing superannuation contributions, to finding the right home loan for your situation.

We’ll compare lenders, handle the paperwork, and guide you every step of the way so you can focus on finding your new home. Book a free 15-minute Discovery Call to discuss your options ASAP! 

Article by Nestor Ramirez — Senior Mortgage Broker

Disclaimer

Watson Mortgages Pty Ltd (Nestor Ramirez Credit Representative Number 378816 and Gary Gilbert Credit Representative Number 432216) are authorised under Australian Credit Licence 389328. Watson Mortgages Pty Ltd ABN 29 642 538 967 is a separate entity to Elliot Watson Financial Planning Pty Ltd. Elliot Watson Financial Planning Pty Ltd is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429. This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.