Margaret Godfrey

Frequently asked questions for First Home Buyers

Buying your first home is an exciting milestone—but it can also feel overwhelming. There’s a lot to think about: deposits, grants, loans, and all the steps in between. If you’re feeling unsure or don’t know where to start, you’re not alone—and you’re in the right place.

This FAQ page is designed to answer some of the most common questions I hear from first home buyers in NSW. Whether you’re just starting to research or getting closer to making a move, you’ll find clear, practical answers to help you feel more informed and confident.

And remember—you don’t need to have all the answers. That’s what I’m here for.

How much deposit do I need?

If you're eligible for the first home buyer concessions and you buy a property within the price limits of the scheme, you’ll likely need around 5% of the purchase price as a deposit, plus approximately $4,000 to cover upfront costs like legal fees, inspections, and other expenses.

For many first home buyers, it's actually less than they expect—especially with the help of government schemes designed to make buying your first home more achievable.

How much can I borrow?

There are really two parts to this question:

Loan-to-value ratio (LVR): Most first home buyers can borrow up to 95% of the property’s purchase price, provided they meet the eligibility criteria (and may even avoid paying Lenders Mortgage Insurance through certain government schemes).
Borrowing capacity: The actual amount you can borrow depends on your income, current expenses, and any existing debts or financial commitments. Lenders assess whether you can comfortably afford the repayments based on your financial situation.

So while you might be able to borrow 95% of the property value, the size of the loan you're approved for will depend on what you can realistically afford to repay.

Why does my borrowing capacity change with every calculator that I try?

Your borrowing capacity can vary widely depending on the lender, because each one has their own credit policy. While online calculators give a rough estimate, they don’t take into account the finer details that lenders assess when working out what you can borrow.

Here are a few key factors that can affect your borrowing capacity:

Types of income: If you earn bonuses, overtime, commissions, allowances, government benefits, rental income, foreign income or investment income—each lender will assess these differently. Some will count all of it, some only a portion, and some may not accept certain income types at all.
Employment type: Whether you're full-time, part-time, casual, or on a contract can also influence how a lender views your income stability.
Existing debts and expenses: Lenders have different approaches to calculating your ongoing commitments, including how they assess credit cards, personal loans, car finance, or HECS/HELP debt.
Investment properties: If you already own an investment property, lenders may also differ in how they assess rental income and any negative gearing benefits.

This is why borrowing power can vary between lenders—and why working with a broker (like me!) helps you find the right fit for your situation, rather than relying on generic online tools.

Are there any stamp duty exemptions or concessions in NSW?

Yes! If you're a first home buyer in NSW, you may be eligible for stamp duty exemptions or concessions under the First Home Buyers Assistance Scheme (FHBAS).

Here’s how it works:

If you're buying a new or existing home valued up to $800,000, you may be eligible for a full exemption, meaning you won't pay any stamp duty.
For homes priced between $800,000 and $1 million, a concessional rate of stamp duty may apply, reducing the amount you have to pay.
If you're buying vacant land to build your first home, you may be eligible for a full or partial exemption on land valued up to $500,000 (with concessions phasing out up to $600,000).

To qualify, you must:

Be over 18 years of age
Be buying your first home in Australia
Move into the property within 12 months and live there for at least 6 continuous months
Be an Australian citizen or permanent resident

Are there any cash grants available to first home buyers in NSW?

Yes—eligible first home buyers in NSW may receive a $10,000 First Home Owner Grant (FHOG) when buying or building a brand-new home.

You may qualify if:

You’re buying a newly built home valued at $600,000 or less, or
You’re purchasing land and building a new home, where the total value of the land and construction is $750,000 or less

To be eligible, you must:

Be 18 or older, and an Australian citizen or permanent resident
Be buying your first home in Australia
Live in the home for at least 6 continuous months within 12 months of settlement or construction

This grant is typically paid at settlement (or when your construction loan is drawn), helping reduce your upfront costs or contribute toward your deposit.

Still have questions? Let’s make it easy.

If you're not sure where to start—or just want someone to explain things in plain English—I'm here to help.

Send me an email with your questions, and I’ll get back to you with answers that make sense for your situation. No pressure, no jargon, and definitely no obligation. By best email address is margaret.godfrey@mortgagechoice.com.au

Prefer to talk it through? Feel free to give me, Margaret Godfrey a call on 0451471061 - Mortgage Broker in Adamstown Newcastle NSW