There’s a moment when you realise: you’re done renting.

Maybe it’s another rent increase. Maybe it’s the itch to finally paint your walls without asking permission. Whatever sparks it, the journey to buying your first home is a big one — and financing? That’s often the biggest hurdle.

Good news: it’s absolutely within reach. With the right preparation, you can turn "how the heck do I do this?" into "what's my move?"

Here’s how to line yourself up for success — no jargon, no guesswork.

Step 1: Get Brutally Honest About Your Finances

Before anything else:

• Track your income and expenses for 3–6 months.
• Know your debts.
• Check your credit score.
  
  

Lenders assess you on the full picture — income, liabilities, savings history, even your visa status (Australian citizen, permanent resident, special category visa).

✅ Pro tips: The cleaner your financial habits now, the stronger your loan application later. Fix small debts, stay consistent, and avoid new liabilities like the plague.

Step 2: Build Your Deposit (Smarter, Not Just Harder)

Yes, a 20% deposit is ideal. No, you don’t have to wait forever to reach it.

Real talk:

• 20%+ deposit: No Lenders Mortgage Insurance (LMI), better loan options, stronger negotiating power.
• 5–10% deposit: Still viable, especially with government support like the First Home Guarantee — but you’ll need to meet strict eligibility criteria.
  
  

Want a smarter way to build your deposit faster? Look at the First Home Super Saver Scheme (FHSSS).

Through the FHSSS, you can:

• Make voluntary contributions into your super (taxed at just 15%, often much lower than your marginal tax rate).
• Withdraw those contributions (plus earnings) later to use toward your deposit.
• Save faster by keeping more of your income instead of handing it to the ATO.
• Potentially reduce your taxable income and stay eligible for grants like the First Home Guarantee.
  
  

✅ Real examples:
If you’re earning decent money but worried about creeping over the income threshold for first home grants, voluntary super contributions can both boost your savings and protect your eligibility. And if you’ve got unused contribution caps from previous years (carry-forward rules), you might be able to turbocharge your deposit even faster.

Smart moves:

• Automate regular voluntary contributions.
• Track your progress toward the $50,000 FHSSS cap.
• Get advice to make sure you structure it properly — it's powerful, but the rules need to be followed carefully.
  
  

✅ Pro tips: Saving through super isn’t locking your money away forever — under the FHSSS, those specific contributions can come back out when you’re ready to buy. The bigger your deposit (through smart saving and strategic tools), the more options you’ll have when you hit the market.

Step 3: Understand Your Borrowing Power (Beyond the Online Calculator)

Online calculators = a rough guide. Real-world lender assessments = a different story.

Banks assess:

• Actual income after taxes.
• Existing debts and obligations.
• Living expenses (realistic ones, not fantasy spreadsheets).
  
  

✅ Pro tip:
Don’t borrow to your maximum limit. Leave breathing room for rate rises, life changes, and future moves.
Survival > Stretching.

Special note if you’re building:
If you're buying a land package or building new, lenders will want extra documentation like progress payment schedules and a comprehensive home building contract.

Step 4: Get Organised (Yes, That Means Paperwork)

No one loves it. But prepared borrowers win.

You’ll need:

• Proof of income (payslips, tax returns).
• Evidence of savings.
• Credit history.
• ID documents.
• Statutory declarations or extra contracts if you’re buying land + building separately.
  
  

If you’re applying jointly, double the documentation. (And yes, it all needs to match.)

✅ Pro tips: Create a digital folder with every document scanned and ready. The faster you respond to lender requests, the smoother your approval journey.

Step 5: Choose the Right Loan (Not Just the Lowest Rate)

Chasing the lowest rate sounds smart — but in reality, lowest isn't always best.

When choosing a loan, think bigger:

• Offset accounts and redraw facilities — these features can shave thousands off your interest bill if used well.
• Flexible repayment options — can you make extra repayments without penalty?
• Break costs — if you want to refinance later, know what it’ll cost you.
• Fixed vs variable rates — it’s not about "cheap now," it’s about how much flexibility (or certainty) you need over time.

Many banks advertise special "honeymoon" rates — sparklingly low rates for the first year or two... then bang, you're shifted to a much higher ongoing rate without warning.
If you're only looking at the opening headline rate, you’re not seeing the real cost over the life of the loan.

Similarly, fixed rates often look great upfront — but what happens when the fixed period ends?
The variable rate you revert to matters. Some lenders quietly hike you onto an uncompetitive rate post-fix, erasing all the savings you thought you locked in.

Understand the "Standard Variable" Discount Game

Banks usually quote your rate as a discount off their "Standard Variable Rate" — but here’s the kicker:

• The size of the discount matters.
• The stability of the bank’s "Standard Variable Rate" matters too.
• Larger banks tend to be more stable over time (fewer random jumps), but smaller lenders sometimes offer deeper initial discounts.
  
  

You want to play smart chess, not checkers:

• Look at the life-of-loan costs, not just the first 12 months.
• Understand the mechanics of the discount, not just the marketing gloss.
• Choose a lender and loan structure that fits your 3–5 year plan, not just your current mood.

✅ Pro tips:
Use comparison sites for rough scouting — but lean on a good broker (👋 that’s us) to dig into the fine print, model life-of-loan costs, and match you with a lender that fits your long-term strategy, not just a promo offer.

Step 6: Lock In Pre-Approval (But Stay Grounded)

Pre-approval is powerful:

• Shows sellers you’re serious.
• Gives you a clear budget range.
• Speeds up offers and contracts.
  
  

But it’s not ironclad.
Final approval happens after your chosen property is vetted and your finances are rechecked.

✅ Pro tips:
After pre-approval, don’t:

• Change jobs.
• Apply for new credit.
• Blow your savings on an impulse Tesla.
• Keep your situation stable until settlement.

Step 7: Stay Smart During the Home Hunt

Pre-approval in hand, it’s tempting to chase every shiny listing.

Stay disciplined:

• Stick to your budget.
• Always get building and pest inspections (small price, big protection).
• Use a conveyancer or solicitor to review every contract before signing.
  
  

✅ Pro tip:
Whether it’s an established home, new build, or land package, don’t just chase grants — make sure the property suits your long-term goals too.

Step 8: Don’t Leave Government Help on the Table

Depending on your circumstances, you might qualify for:

• First Home Owner Grant
  
• First Home Guarantee
  
• Stamp duty concessions
  
• First Home Super Saver Scheme
  
  

✅ Pro tips:
Check eligibility early. Schemes vary by state, by property type, and by price cap — and many require living in the property for a minimum period. Plan ahead so you don’t accidentally lose access to tens of thousands in support.

Special Warning: Stay Smart at Auction

Auctions are exciting — but they can be financially dangerous if you’re not disciplined.

Here's the critical thing to know:

• When you bid at auction and win, you are entering into an unconditional, legally binding contract.
• There’s no "subject to finance" safety net.
• If you bid over your pre-approved limit (or the maximum amount your mortgage broker advised you), you are gambling with your future.
  
  

If your finance falls short post-auction:

• You could forfeit your deposit (often tens of thousands of dollars).
• You could face legal action from the vendor for breach of contract.
• You might end up being forced to sell the property at a loss to cover the shortfall — a financial and emotional nightmare.
  
  

✅ Pro tips:
Before the auction:

• Know your absolute maximum — the line you will not cross, no matter what the adrenaline says.
• Stick to it. No exceptions. No justifications.
• Remember: there's no such thing as a "better deal" if you can't settle it.
  
  

✅ Bonus:
Some lenders offer auction-specific pre-approvals with slightly different settings — chat with your broker (👋 again, that’s us) if you're planning to buy under the hammer, so you know exactly where you stand.

My Final Word

Securing a home loan as a first-time buyer isn't about "winning approval" — it’s about strategically building your financial future. Yes, it can be daunting. Yes, it takes work. But when you get it right, it’s one of the most powerful wealth-building moves you’ll ever make. And you don’t have to go it alone.

Ready to make your first move the right move? Book a call with Mountway.
No pressure. No jargon. Just clear, personalised advice to help you unlock your first home dream.