If you’re a first home buyer in Australia, the new financial year could present a great opportunity to enter the property market. With property prices easing in some markets and recent Federal Government housing reforms aimed at increasing housing supply and supporting owner-occupiers, market conditions may be becoming more favourable for first-home buyers. In some areas, there may be more properties to choose from, less competition from investors, and greater room to negotiate than we’ve seen in recent years.

While buying your first home is an exciting milestone, it can also feel overwhelming. Between changing interest rates, lending policies and government assistance programs, knowing where to start isn’t always easy. The good news is that a little preparation can make the home-buying process much smoother.

Here are five essential tips to help you buy your first home in Australia this financial year.

1) Review Your Finances Before Applying for a Home Loan 

Before browsing property listings or attending open homes, take the time to review your financial position.

When assessing a home loan application, lenders don’t just consider your income—they also examine your spending habits to understand how you manage your money. Your recent bank statements can play an important role in determining your borrowing capacity.

Review your transactions and identify subscriptions, memberships or recurring expenses that you could reduce or eliminate. Even small improvements maintained over several months can strengthen your application and demonstrate responsible financial management.

If you have existing debts such as personal loans or credit cards, reducing these balances before applying may also improve your borrowing power.

2) Create a Budget and Build Your Home Deposit Faster

Saving for a home deposit is often one of the biggest challenges for a first home buyer.

If you don’t already have one, a budget can be a useful tool for understanding your finances. Consider mapping out your after-tax income alongside your expenses, which might fall into essentials (like rent, groceries, utilities, and insurance) and non-essentials (such as eating out, entertainment, and hobbies). 

From there, it can be interesting to see how much could potentially be saved each month. A well-known framework is the 50/30/20 rule — 50% toward essentials, 30% toward lifestyle, and 20% toward savings. Keeping separate bank accounts for each “bucket” is something many people find works well for them. 

3) Do a credit check 

It’s worth taking a look at your credit report before you apply for a home loan. Lenders typically review your credit history as part of their assessment process. 

Under the Privacy Act 1988, you’re entitled to a free copy of your credit report every three months from each of Australia’s three credit reporting bureaus: Equifax, Experian, and illion. 

Your credit report generally includes information such as: 

• Your borrowing history over the past five years 
• Any credit applications you’ve made 
• Your repayment history 

Each bureau also assigns a credit score, calculated on a different scale: 

Bureau	Score Range
Equifax	0 – 1,200
Experian	0 – 1,000
illion	0 – 1,000

Because each bureau uses its own scoring system, your score may vary between them, and different lenders may use different bureaus. 

If you spot any errors or information that doesn’t look right, contact the relevant credit reporting bureau directly to have it investigated and corrected. 

4) Understand the government support 

It’s important to familiarise yourself with government support that is available for first home buyers at a federal and state level. These schemes vary depending on where you’re buying and your personal circumstances. 

Depending on your circumstances, you may qualify for:

• First Home Guarantee – Eligible buyers can purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), subject to scheme eligibility.
• Help to Buy Scheme – A shared equity program where the Australian Government may contribute up to 40% of the purchase price for a new home or up to 30% for an existing home, allowing eligible buyers to purchase with as little as a 2% deposit.
• First Home Super Saver Scheme (FHSSS) – Allows eligible buyers to make voluntary superannuation contributions and withdraw eligible amounts to help fund a home deposit while benefiting from concessional tax treatment.
• First Home Owner Grant (FHOG) – Available in many states and territories for eligible buyers purchasing or building a new home.
• Stamp duty exemptions or concessions – Depending on your state or territory, you may pay reduced or no stamp duty, potentially saving tens of thousands of dollars.

Eligibility criteria vary by state, property value and personal circumstances, so obtaining professional advice before purchasing is important.

5) Get Home Loan Pre-Approval Before House Hunting

Before you start house hunting, it’s important to meet with a mortgage broker to understand your borrowing power. This will save you countless hours looking at properties that could be outside your budget. 

After running through your financial situation, we’ll explain your borrowing capacity, and any upfront and ongoing costs to consider, such as stamp duty, legal fees and building and pest inspections.  

We’ll help you apply to get your finances pre-approved with your preferred lender, so that you’re all ready to go when you find the right home. 

Buying your first home is exciting, and there are a lot of good reasons to jump in now. Let’s make your home purchasing dream a reality this financial year. Get in touch today.