In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
First Home Buyer Hub
Buying your first home is exciting — and can also be a bit daunting. Mortgage Experts is here to help guide you through the process.
You probably have a lot of questions. How much deposit do you need? How much can I borrow? What's this "LMI"? Is the government grant still a thing? Can I get the government guarantee, or can my parents help?
This page pulls it all together in plain English, so you know exactly what applies to you before you start looking at properties. Each section below links through to a dedicated page with the full detail. Please note we have focused on NSW First Home Buyers on this page (as we are based on Sydney’s Northern Beaches) but we do loans for people all across the country as well.
The first home buyer journey, in short
- Work out your deposit position — genuine savings, gifted funds, or a mix of both.
- Calculate your borrowing capacity – we check your income and expenses to arrive at your borrowing capacity.
- Factor in stamp duty and other costs— in NSW, first home buyers buying under $800,000 pay no stamp duty at all and a progressively scaled amount between $800k - $1M.
- Check what LVR you're working with — Calculate your Loan to Value Ratio (LVR) to determine whether you'll need to pay Lenders Mortgage Insurance (LMI), whether you are eligible for the government guarantee scheme and what sort of loans you can access.
- Check your eligibility for the Australian Government 5% Deposit Scheme (First Home Guarantee) if applicable — available to all first home buyers, who have between a 5% and 20% deposit. The scheme is no longer subject to an income test and has no annual cap on places. Property price caps still apply.
- Finally, get pre-approved, find your property, and exchange contracts! — this is where a broker earns their keep, matching you to the lender and scheme combination that suits your situation.
Every one of these steps interacts with the others — your deposit size affects your LVR, your LVR affects whether you need LMI or can access the government guarantee scheme, and the property price affects your stamp duty and grant eligibility. That's exactly why it pays to get advice early.
The First Home Buyers Guarantee
The Australian Government 5% Deposit Scheme (formerly the First Home Loan Deposit Scheme, and still commonly called the First Home Guarantee) lets eligible first home buyers purchase with as little as a 5% deposit, with the government guaranteeing the rest of the gap to 20% — meaning no lenders mortgage insurance (LMI) is payable and better interest rates are available.
From 1 October 2025, this scheme was significantly expanded:
• No income caps — the old $125,000 (single) / $200,000 (couple) limits have been removed.
• No cap on places — previously limited to around 35,000 spots a year on a first-come basis; now open to every eligible applicant.
• Higher property price caps — in Sydney and some NSW regional centres, the cap is now $1.5 million.
There's also a Family Home Guarantee for eligible single parents and single legal guardians, which works the same way but only requires a 2% deposit.
[Read our full guide to the First Home Guarantee →]
95% home loans
Your Loan to Value Ratio (LVR) is simply your loan amount as a percentage of the property's value. A $1M property value with a $950K loan is expressed as a 95% LVR home loan.
Generally, banks will lend to a maximum of 95% LVR for first home buyers, but all costs need to be allowed for and covered by the borrower.
We have some new non-bank lenders able to go to as high as 98% or even 100% LVR now but again all costs need to be allowed for and covered by the borrower.
Outside of a government guarantee, higher-LVR loans like these are harder to get approved for and usually come with higher interest rates and of course the cost of LMI.
Lenders have very different appetites for these kinds of loans, and policies shift over time. This is one of the areas we specialise in, because knowing which lender will actually approve a 95% or 98% LVR deal (and on what terms) can be the difference between an approval and a disappointing decline.
[Read our full guide to 95% LVR home loans →]
No Deposit Loans
A true no deposit loan product does not exist at the moment. However, we have a few lenders who can lend 98% or even 100% of the purchase price with a risk fee (equivalent to LMI) of around 3-4% of the loan amount which needs to be funded by borrowers’ own funds.
See also guarantor loans.
[Read our full guide to No Deposit Loans loans →]
Guarantor loans
If you don't have enough deposit to qualify for a loan on your own, but you have a strong income and stable employment situation AND a family member (usually a parent) willing to act as a guarantor then a family guarantee loan may be worth considering.
The family member provides additional security for your loan using equity in their own property. They do not increase what you can borrow they simply provide additional security for your loan.
This means you could potentially borrow up to 105% of the value of a property to cover the property purchase price plus all costs (mainly stamp duty). Effectively a no deposit option.
Done properly, this can help you avoid LMI entirely and borrow at a lower interest rate — Of course it needs to be considered very carefully protect everyone involved.
[Read our full guide to family guarantor loans →]
Genuine savings
Most lenders want to see that at least part of your deposit has been genuinely saved over time (typically 3+ months), rather than appearing from nowhere just before you apply for your loan. Gifted funds, inheritances, and government grants are usually treated differently to genuine savings — and the rules vary by lender and LVR.
Some of the major lenders now only require genuine savings for 1 month or not at all if your depots is a gift from parents.
[Read our full guide to genuine savings →]
Lenders Mortgage Insurance (LMI)
LMI is insurance the lender takes out — at your cost — to protect itself against loss if you default on your loan and the sale of the property doesn't cover the pay out of the loan.
LMI generally applies whenever you borrow more than 80% of the property's value, unless you're covered by a government guarantee scheme or family guarantor arrangement.
It's one of the most misunderstood costs in home buying: it doesn't protect you, it's not always avoidable, and it's not always a bad idea to pay it.
[Read our full guide to LMI →]
NSW stamp duty concessions and the First Home Owner Grant
New South Wales offers two separate forms of support:
1. First Home Buyers Assistance Scheme (FHBAS) — stamp duty (transfer duty) relief on new or existing homes:
- Full exemption (pay $0 stamp duty) on properties valued up to $800,000
- Concessional rate on properties between $800,000 and $1,000,000
- Vacant land: full exemption up to $350,000, concessional rate up to $450,000
2. First Home Owner (New Homes) Grant (FHOG) — a $10,000 cash grant, but only for new homes:
- New homes valued up to $600,000
- Land + building contract combined up to $750,000
- Not available for established/existing homes
[Read our full guide to NSW stamp duty concessions and the FHOG →]
Getting the right combination for your situation
Every situation is different and it can be complex to work out what the best option for a First Home Buyer.
That's where we come in. We'll map out your options across all of these schemes, tell you honestly which ones you qualify for, and structure your loan(s) to make the most of them and get you the best deal possible that we can.
[Book a free, obligation-free chat with Mortgage Experts →]
This page provides general information only about first home buyer schemes in New South Wales and does not constitute financial advice. Eligibility criteria, price caps, and grant amounts are set by the Australian Government and the NSW Government and are subject to change — always confirm current details with Housing Australia, Revenue NSW, or speak with us directly before making a purchase decision.
Stamp duty concessions and additional grants
Each state and territory has different ways of assisting first home buyers. Some offer concessions or a complete exemption from paying stamp duty while some offer an additional grant or combination of the two. Some states also have additional grants and or concessions available for regional areas.
Please click on your state or territory below for more information.
State & Territory based information
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