Buying your first home is exciting. It’s one of those big life moments - the kind you’ve probably pictured a dozen times over. But let’s be real: the process can also feel… overwhelming. Between saving for a deposit, wrapping your head around loan options, and dealing with banks and brokers, it’s easy to get lost in the noise.

The good news? It doesn’t have to be scary. With a bit of prep (and the right support), you can tick off this important life milestone. Here’s how to secure your first home loan and make the process feel a whole lot less daunting.

1. Know Your Numbers

Before you even look at property listings, get clear on your financial situation:

• Income & expenses: Track where your money goes each month. Lenders want to see stable income and responsible spending.
  
  

• Savings: Most lenders require at least a 5–20% deposit. The bigger your deposit, the stronger your application.
  
  

• Credit history: A healthy credit score shows lenders you can manage debt responsibly. If you haven’t checked yours yet, now’s the time.

💡 Millie tip: Use a borrowing power calculator to get a ballpark idea of how much you might be able to borrow.

2. Get Pre-Approval

Think of pre-approval as your “green light” to start house-hunting. A lender will assess your finances and confirm how much they’re willing to lend you.

• It gives you confidence when making offers.
  
  

• It shows sellers you’re serious.
  
  

• It helps you stay within your budget.
  
  

3. Understand Loan Options

Not all home loans are the same. You’ll want to compare:

• Variable vs fixed rates – flexibility vs certainty in repayments.
  
  

• Offset accounts & redraw facilities – tools to reduce interest.
  
  

• Loan term length – most are 25–30 years, but the right fit depends on your financial goals.

💡 Millie tip: A mortgage broker can walk you through the options and help match you with the right lender - generally at no extra cost to you.

4. Factor in the Extras

It’s not just the deposit you need to save for. First-home buyers should also plan for:

• Stamp duty (though exemptions and concessions apply in many states).
  
  

• Lenders Mortgage Insurance (LMI) if your deposit is under 20% (though you may be eligible for a 2% or 5% deposit without LMI under the new Home Guarantee Scheme)
  
  

• Legal & conveyancing fees, inspections, moving costs.

These add up, so don’t let them catch you off guard.

5. Make the Most of Government Support

Australia offers a range of schemes to help first-home buyers, such as:

• First Home Owner Grant (FHOG)
  
  

• First Home Guarantee (low deposit, no LMI)
  
  

• Stamp duty concessions (varies by state)

These can save you tens of thousands, so check what’s available where you live.

6. Prepare Your Application

When you’re ready to apply, lenders will want:

• Proof of income (payslips, tax returns)
  
  

• Bank statements and savings history
  
  

• ID documents
  
  

• Details of existing debts or credit cards

The more organised you are, the smoother the process.

Securing your first home loan isn’t just about ticking boxes - it’s about setting yourself up for long-term success. Take it step by step, stay realistic with your budget, and lean on the tools and support available to you.

Remember: the right preparation turns a daunting process into an achievable goal. That dream of owning your first home? You’re closer than you think.