Top Strategies to Plan Your First Home Purchase

Pre-Approval Gives You a Real Budget, Not a Guess

Pre-approval tells you what you can borrow before you fall in love with a property you can't afford. It's a conditional agreement from a lender based on your income, expenses, and credit file, and it usually lasts 90 days.

Consider a couple earning $120,000 combined who assume they can borrow around $600,000. After running their numbers through a lender's serviceability calculator, they discover ongoing car finance and a higher-than-expected living cost buffer means their borrowing capacity sits closer to $520,000. Knowing that before they attend open homes saves them from making offers they can't settle on. Pre-approval also signals to sellers and agents that you're a genuine buyer, which can make a difference in a tight market.

The process involves submitting payslips, tax returns, bank statements, and proof of savings. A mortgage broker in Bulimba or across Brisbane can handle this with multiple lenders at once, rather than you approaching banks individually.

How Much Deposit Do You Actually Need?

You can buy with as little as 5% if you qualify for the First Home Guarantee, which was expanded from October 2025 to remove income caps and place limits. That scheme allows eligible buyers to avoid Lenders Mortgage Insurance even with a smaller deposit.

Outside the guarantee, most lenders require at least 20% to avoid LMI, which can add thousands to your upfront costs. A 10% deposit is common for first home buyers using standard low deposit options, but you'll pay LMI unless you're using a government-backed scheme.

Your deposit also needs to include genuine savings, which means funds you've held in your own name for at least three months. Gifted deposits from family are accepted by most lenders, but they usually want to see at least 5% of the purchase price coming from your own savings to demonstrate you can manage money over time.

Brisbane's Stamp Duty Concessions Can Save You Thousands

Queensland offers a full stamp duty concession on established homes up to $700,000 for eligible first home buyers, with no duty payable. Between $700,000 and $800,000, you'll pay a reduced rate. On new builds, the concession can reduce duty to nil under certain conditions from May 2025.

A buyer purchasing an established unit in Coorparoo at $680,000 would normally pay around $19,000 in stamp duty. With the first home concession, that drops to zero. That's money that can stay in your offset account or cover furniture and moving costs instead.

You can check your exact liability using a stamp duty calculator before you make an offer. The concession applies only if you or your spouse haven't owned property in Australia before, and you need to move in within 12 months and live there for at least 12 continuous months.

Should You Fix or Keep Your Rate Variable?

A variable rate gives you flexibility to make extra repayments and access an offset account, which can reduce the interest you pay over time. A fixed rate locks in your repayment amount for a set period, usually one to five years, but limits your ability to pay extra or redraw without penalty.

Most first home buyers benefit from keeping at least part of their loan variable so they can pay down the balance faster when they have spare cash. If rate stability matters more than flexibility, a partial fix on half the loan can give you both.

At current variable rates, an offset account can save more in interest than a slightly lower fixed rate if you keep a decent balance in the account. Your broker can model both scenarios based on your actual income and spending.

The $30,000 Queensland Grant Runs Until June 2026

Eligible first home buyers in Queensland can access up to $30,000 towards buying or building a new home valued under $750,000. This grant is due to expire on 30 June 2026, so if you're planning to build or buy new, timing matters.

The grant applies only to new homes, which includes house and land packages, newly built properties that haven't been occupied, and off-the-plan apartments. It doesn't apply to established homes, even if they've been renovated.

You can combine this grant with the First Home Guarantee and the stamp duty concession, which makes buying new in Brisbane's outer suburbs or growth corridors much more accessible. In a scenario where a buyer purchases a new townhouse in the outer northern suburbs at $720,000 with a 5% deposit, the $30,000 grant covers most of the deposit shortfall and settlement costs, and the guarantee removes the need for LMI.

Use Super to Build Your Deposit Faster

The First Home Super Saver Scheme lets you make voluntary contributions into your super and withdraw up to $50,000 to use as a deposit. Contributions are taxed at 15% instead of your marginal rate, which can save a significant amount if you're earning over $45,000.

You can contribute up to $15,000 per financial year, so it takes at least a few years to reach the $50,000 cap. The scheme works particularly well if you're still a year or two away from buying and want to boost your savings without paying full income tax on every dollar.

When you withdraw, you'll pay tax on the amount based on your marginal rate minus a 30% offset, but it's still more tax-effective than saving in a standard bank account. You'll need to apply through the ATO, and the funds are released directly to you, not the lender.

Get Your Paperwork Ready Before You Apply

Lenders want to see at least three months of payslips if you're a permanent employee, or two years of tax returns and financials if you're self-employed. They'll also ask for 90 days of bank statements across all your accounts, including savings, everyday accounts, and credit cards.

If you've changed jobs recently, some lenders will still approve you after probation, but others require six months in the role. If you're casual, most lenders want 12 months of consistent hours with the same employer.

Your statements will be assessed for regular income, spending patterns, and any red flags like gambling, unpaid bills, or overdrafts. Cleaning up your accounts a few months before you apply makes the process faster and improves your chances of approval.

Work Out What You Can Actually Afford to Repay

Serviceability is the lender's calculation of whether you can afford the loan based on your income, expenses, and a buffer rate that's usually 3% above the actual interest rate. Just because a lender will approve you for a certain amount doesn't mean you'll be comfortable repaying it.

Run your own numbers using a loan repayment calculator to see what the repayments look like at different loan amounts and rates. Factor in rates rising by 1% or 2% over the life of the loan, and make sure you'd still be able to cover the repayment without cutting into essential spending.

Understanding your borrowing capacity early means you can adjust your budget or savings plan before you start looking at properties, rather than after you've made an offer.

Speak to a Broker Before You Start House Hunting

A mortgage broker can tell you what you're eligible for across multiple lenders, help you access schemes like the First Home Guarantee, and structure your loan to match how you plan to use it. They'll also manage the application, liaise with the lender, and keep the process moving through to settlement.

If you're buying in New Farm, Morningside, or Coorparoo, working with a mortgage broker in New Farm or Morningside who knows the local market means they can give you realistic expectations around pricing, competition, and what lenders are currently comfortable with in those areas.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions