First Home Buyer
How to Buy Your First Home in Australia: A Complete 2026 Guide
From saving your deposit to getting the keys — everything you need to know about buying your first property in Australia this year.
Step-by-step guide
The Home Buying Journey
Buying a home is the biggest financial decision most Australians make. Here's a clear, step-by-step path from saving your deposit to getting the keys.
1
Work out your borrowing power
Before you start searching, understand how much you can borrow. Lenders assess your income, expenses, existing debts, and credit history. Use our calculator above for a rough estimate, then speak to a broker for a precise figure.
Try the calculator ↗
2
Save your deposit (and explore grants)
Most lenders require at least a 10–20% deposit. Below 20%, you'll pay Lenders Mortgage Insurance (LMI) — unless you qualify for the First Home Guarantee, which lets you buy with just 5% deposit with no LMI.
First home buyer grants ↗
3
Get pre-approval
Pre-approval (also called conditional approval) gives you a clear budget when you shop and signals to sellers that you're serious. Most pre-approvals are valid for 90 days. A mortgage broker can get you pre-approved with multiple lenders simultaneously.
Find a broker ↗
4
Compare loans & choose a lender
Don't just go to your existing bank. With rates currently rising, there's a significant spread between the best and worst home loan products. A 0.5% difference on a $700,000 loan is over $3,500 per year.
Compare rates now ↗
5
Exchange contracts & settle
Once your offer is accepted, your conveyancer will handle exchange of contracts and the settlement process (typically 6 weeks). Your lender prepares the formal loan offer for signing. On settlement day, the property becomes yours.
Grants & Schemes
First Home Buyer Help in 2026
The Australian government offers several programs to help first home buyers get into the market sooner. Here's what you could be entitled to.
First Home Guarantee
Buy your first home with as little as a 5% deposit with no Lenders Mortgage Insurance. The government guarantees up to 15% of the loan, avoiding LMI costs which can run to $20,000+.
0% LMI
35,000 places per year. Conditions apply.
First Home Owner Grant (FHOG)
A one-off cash grant for eligible first home buyers purchasing or building a new home. Amount varies by state.
Up to $30,000
NSW: $10K · QLD: $30K · VIC: $10K · WA: $10K
Stamp Duty Concessions
Most states offer full or partial stamp duty exemptions for first home buyers purchasing under a set threshold. In NSW, homes under $800K are fully exempt.
Up to $31,090
Savings depend on state and property value.
First Home Super Saver
Voluntary contributions to your super can be withdrawn for a first home deposit. You can save up to $50,000 ($100K for couples) and pay a lower tax rate on withdrawals.
$50K / person
Max $15,000 contribution per year.
Live Rates
Compare Home Loan Rates
Owner-occupier loans · P&I · $600,000 · 80% LVR
Updated May 7, 2026
Variable
Fixed 1yr
Fixed 2yr
Fixed 3yr
LenderRateComp. RateAction
Macquarie Bank Top Pick
6.14%
6.17%
ubank
6.19%
6.19%
Athena
6.24%
6.24%
ING
6.29%
6.34%
ANZ Plus
6.34%
6.38%
Westpac
6.74%
6.81%
CommBank
6.79%
6.84%
Rates are indicative only and subject to lender credit assessment. Comparison rates are based on a $150,000 loan over 25 years. OzHomeLoan.au may receive a referral commission if you apply through our links. This does not affect the rate you pay.
Guides & Articles
Everything You Need to Know
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Rate Watch
What the May 2026 RBA Hike Means for Your Mortgage
The RBA raised rates to 4.35% on May 6. Here's the exact impact on different loan sizes — and what to do about it.
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Refinancing
Fixed Rate Expiring? Here's Exactly What to Do Next
Thousands of Australians roll off fixed rates this year onto much higher variable rates. A step-by-step guide to your options.
Questions
Frequently Asked Questions
What is the best home loan rate in Australia right now? +
The most competitive home loan rates as of May 2026 start from 5.79% p.a. for a 2-year fixed loan (comparison rate 5.94% p.a.) and 6.14% p.a. for variable loans. These rates are for owner-occupiers paying principal and interest with an LVR under 80%. Following the RBA's May 6 hike to 4.35%, most lenders will pass on the full increase to variable-rate customers within 1–2 weeks.
How much can I borrow for a home loan in Australia? +
Borrowing power depends on your gross income, living expenses, existing debts, and whether you apply alone or jointly. As a rough guide, lenders typically approve 4–6× gross annual income. On a $120,000 household income, you might borrow $480,000–$720,000, depending on your expenses and the lender's assessment criteria. Use our repayment calculator for an estimate, or speak to a broker for an accurate pre-approval.
What grants are available for first home buyers in Australia in 2026? +
First home buyers may be eligible for: the First Home Guarantee (5% deposit, no LMI, 35,000 places/year); the First Home Owner Grant (up to $30,000 cash, varies by state); stamp duty exemptions in most states; and the First Home Super Saver Scheme (save up to $50,000 in super for your deposit). Combined, these schemes can save a first home buyer $30,000–$60,000 depending on location and circumstances.
Fixed or variable rate — which is better right now? +
With three consecutive RBA hikes in 2026, many borrowers are considering fixed rates for certainty. Currently, the best 2-year fixed rates (5.79% p.a.) are slightly below the best variable rates (6.14% p.a.), which is unusual and suggests the market expects the RBA to hold or cut within the fixed term. That said, fixed loans limit your flexibility (extra repayments capped, no offset accounts). Most brokers recommend splitting — part fixed, part variable.
When should I consider refinancing my home loan? +
Consider refinancing if: your current rate is more than 0.5% above the best available rate; your fixed term is expiring; your property value has increased enough to remove LMI or access equity; or your financial situation has improved and you now qualify for better rates. The average Australian saves around $4,800 per year by switching to a more competitive loan. The process typically takes 4–6 weeks and costs little if you're not breaking a fixed rate.
Do I need a mortgage broker? +
A broker is not mandatory, but most first home buyers benefit significantly from using one. Brokers have access to 30–40+ lenders (including those who don't advertise publicly), handle the paperwork, and are legally required to act in your best interest. Their services are typically free to the borrower — lenders pay the broker a commission. If you're a first home buyer, self-employed, or have a complex situation, a broker can make the difference between approval and rejection.