First Time Buyer Challenges and How to Handle Them

You'll Probably Need More Cash Than You Think

Most people entering the Brisbane market assume the deposit is their main cost.

That's only half the picture. Consider someone buying a unit in Coorparoo for $550,000 with a 10% deposit. They've saved $55,000, which feels like a solid achievement. Then they discover stamp duty will cost around $16,775, conveyancing fees will run another $1,500 to $2,000, building and pest inspections add $600, and their lender wants proof they can cover mortgage repayments plus ongoing costs. Suddenly that $55,000 doesn't stretch as far as expected.

The issue isn't just having enough for the deposit. It's proving to a lender that after you've paid for everything upfront, you still have a buffer. Most lenders want to see genuine savings that weren't just deposited last month, plus evidence you can handle regular repayments without stress. If you're relying on a gift deposit from family to top up your savings, that needs to be declared and documented properly. Some lenders are more flexible with gifted funds than others, which is where speaking to someone who works with multiple lenders becomes genuinely useful.

Borrowing Capacity Often Falls Short of Property Prices

Your borrowing capacity is what a lender will actually approve you for, and it's almost always less than you'd like.

Lenders assess your income against all your expenses, including credit card limits even if you don't use them, buy now pay later accounts, and any other debts. In Brisbane's inner suburbs like New Farm or Bulimba, entry-level property prices can easily sit between $600,000 and $700,000. If you're earning $85,000 a year with a car loan and a credit card, you might only be approved to borrow $450,000. That leaves a significant gap, even with the First Home Loan Deposit Scheme allowing you to borrow with a 5% deposit.

We regularly see buyers who've found the perfect apartment in Morningside or Coorparoo, only to discover their borrowing capacity falls $50,000 short. Closing that gap might mean increasing your deposit, reducing your credit limits, paying off smaller debts, or adjusting your search criteria. Running through your numbers before you start looking saves disappointment later.

Interest Rate Structures Can Trip You Up

Choosing between a fixed interest rate and variable interest rate isn't just about picking the lower number today.

A variable rate might sit lower right now, but it can change at any time. A fixed rate locks in your repayments for a set period, usually between one and five years, which gives you certainty but less flexibility. If you fix and then want to refinance or sell early, you might face break costs. If you go variable and rates rise, your repayments increase.

Many borrowers split their loan, fixing a portion and leaving the rest variable. This gives some protection against rate rises while keeping access to features like an offset account or redraw facility. Not all fixed loans allow extra repayments or offset accounts, so if you're planning to park savings against your loan to reduce interest, check what your lender allows before you commit.

Stamp Duty Concessions Don't Apply Everywhere

Queensland offers first home buyer stamp duty concessions, but they're not automatic and they don't cover every purchase.

If you're buying an existing home valued up to $500,000, you may qualify for a full concession. Between $500,000 and $550,000, a partial concession applies. Above that, you're paying full stamp duty. For apartments in areas like New Farm where the median unit price has been creeping higher, you might fall outside the concession threshold entirely. That can add $15,000 to $20,000 to your upfront costs.

The first home owner grant also has specific rules. It only applies if you're buying or building a new home, not an established property. The grant amount and eligibility criteria change depending on whether you're in Brisbane or a regional area, and whether you're building or buying off the plan. Using the stamp duty calculator with your actual purchase price gives you a clear picture of what you'll owe, rather than assuming you'll get relief.

Lenders Mortgage Insurance Isn't Optional With Low Deposits

If you're borrowing more than 80% of the property value, you'll pay Lenders Mortgage Insurance.

LMI protects the lender if you default, but you're the one paying for it. On a $500,000 purchase with a 10% deposit, LMI might cost between $8,000 and $12,000 depending on your lender and loan amount. That's often added to your loan rather than paid upfront, which means you're paying interest on it for the life of your mortgage.

The First Home Loan Deposit Scheme and Regional First Home Buyer Guarantee let eligible buyers borrow with a smaller deposit without paying LMI, because the government guarantees part of the loan. But these schemes have limited places each financial year and strict eligibility rules around income and property price caps. If you don't secure a spot or you're buying above the price cap, you're back to paying LMI or finding a larger deposit.

Pre-Approval Doesn't Mean You're Done

Getting pre-approval feels like clearing a major hurdle, but it's conditional.

Pre-approval confirms a lender is willing to lend you a certain amount based on the information you've provided. It's valid for a set period, usually three to six months, and it makes your offer more attractive to sellers. But it's not a guarantee. If your financial situation changes between pre-approval and settlement, if you take on new debt, change jobs, or if the property valuation comes in lower than the purchase price, your approval can fall through.

In our experience, buyers sometimes think pre-approval means they can relax. Then they buy a new car or take out finance for furniture, and suddenly their application is reassessed. The safest approach is to treat pre-approval as the start of a holding pattern where you keep everything stable until settlement.

You'll Probably Apply to More Than One Lender

Not every lender will say yes, and not every lender will offer the same terms.

As an example, someone applying with a 5% deposit and irregular income from commission or casual work might be declined by one lender but approved by another who's more comfortable with that income type. Interest rate discounts, offset account access, and whether LMI is capitalised or paid upfront all vary between lenders. A mortgage broker who works across multiple lenders can match your situation to the lender most likely to approve you on the terms that suit your circumstances.

Submitting multiple applications yourself can actually hurt your credit score and waste time. Brokers submit one application to the most suitable lender based on your profile, which keeps your credit file cleaner and speeds up the process.

If you're trying to work out what you can borrow, what you'll actually pay upfront, or which loan structure fits your plans, call one of our team or book an appointment at a time that works for you. We'll walk through your numbers and show you what's realistic before you start looking.

Frequently Asked Questions