First Home Buyers Guide: Smart Steps to Get Into the Market in 2025

Shaun Chaudhry
Jun 13
2 min read

Summary:

✅ Understand your borrowing power and budget
✅ Learn about government grants and schemes for first home buyers
✅ Get pre-approval before house hunting
✅ Compare loan options with the help of a mortgage broker
✅ Be aware of extra costs like stamp duty, LMI, and inspections

Entering the Property Market: Where to Start

Buying your first home can feel overwhelming, but with the right preparation, it’s completely achievable. In 2025, many first-time buyers are taking advantage of supportive policies and flexible finance solutions to get a foot on the property ladder.

The key? Planning and professional guidance.

1. Know Your Budget & Borrowing Power

Before anything else, determine how much you can afford. This includes:

Your savings (deposit)
Your income and monthly expenses
Your credit score and existing debts

A mortgage broker can help you understand what lenders are likely to offer based on your financial profile.

📌 Tip: Most lenders require a minimum 5%–10% deposit, plus enough to cover upfront costs.

2. Take Advantage of First Home Buyer Incentives

In Australia, several government grants and schemes are designed to support first home buyers:

First Home Owner Grant (FHOG) – a lump sum grant (up to $10,000 in many states)
Stamp Duty Concessions – reduced or waived stamp duty for eligible buyers
First Home Guarantee (formerly FHLDS) – buy with just a 5% deposit without paying LMI

💡 Check your state’s revenue office and federal programs to see what you qualify for.

3. Get Loan Pre-Approval

Before you fall in love with a property, get your home loan pre-approved. This gives you a clear budget and shows real estate agents you’re serious.

Pre-approval typically lasts 60–90 days and helps speed up the buying process once you find the right home.

4. Compare the Right Home Loans

There are many home loan options, and not all are suited to first-time buyers. A few key features to look for:

Low interest rates (introductory or fixed)
Low or waived fees
Offset accounts or redraw facilities
Flexible repayments

📞 Shaun at Proactive Lending Solutions can help you navigate all this and match you with lenders who support first home buyers.

5. Plan for Upfront & Ongoing Costs

Don’t forget about the extra costs involved in buying a home:

Stamp duty (if not waived)
Lenders Mortgage Insurance (LMI) if you’re borrowing over 80% of the property value
Building and pest inspections
Legal fees for conveyancing
Home insurance

Plan for these early so you’re not caught out later.

Conclusion

Buying your first home in 2025 is achievable – but it requires planning, smart finance choices, and expert guidance. By taking advantage of government schemes and understanding your financial position, you can make confident decisions and secure your first home sooner.