First Home Buyer Guide: Steps to Getting Your First Home Loan

Buying your first home is a major milestone. For many first-time borrowers, the challenge isn’t necessarily affordability — it’s navigating a loan process that can feel complex, inconsistent, and time-consuming.

At Azura Financial, we specialise in helping first home buyers secure tailored finance that fits both their lifestyle and long-term goals.

“For many first home buyers, the challenge is not qualifying. It is about structuring the loan properly, reducing unnecessary costs, and having someone manage the details so nothing is missed. At Azura Financial, we guide clients through every step, so they can buy confidently without distractions.” — Ben Hawley, Co-Founder, Azura Financial

Step 1: Understand Your Borrowing Power

Before you attend inspections or make an offer, you need a clear view of what you can borrow. This goes beyond income multiples. Lenders assess your living expenses, liabilities, and income type, including bonuses, trust income, contract income, and self-employment.

Example:
A Sydney couple earning $240,000 combined had PAYG income, small credit card debts, and a 15% deposit. Azura Financial secured them $1.4 million in borrowing capacity across two lenders, giving them the flexibility to purchase a $1.6 million terrace in Paddington.

Step 2: Build a Strategic Deposit Position

Traditionally, most lenders prefer a 10–20% deposit. Contributing less usually meant paying Lenders Mortgage Insurance (LMI), unless you had access to a guarantor loan or were eligible for profession-based waivers.

What’s New in 2025: The Federal 5% Deposit Scheme

From October 2025, eligible first home buyers will be able to purchase a property with just a 5% deposit under the expanded Federal Government scheme. The government effectively acts as guarantor for part of your loan, which means:

• No LMI even if you only have a 5% deposit
• Faster entry into the property market
• Applies to both new and established homes (subject to price caps and eligibility criteria)

This update builds on previous state-based incentives, making it significantly easier for first home buyers to purchase with a smaller savings base.

Example:
One client buying a $1.25 million apartment in Rose Bay had saved $125,000. With Azura Financial’s guidance, they used a deposit bond, qualified for a lender offering waived LMI for medicos, and settled with zero out-of-pocket insurance costs. With the new Federal 5% scheme, similar clients will be able to achieve this outcome without relying solely on profession-specific policies.

Azura Financial will guide you through:

• Checking eligibility for the 5% deposit scheme
• Combining it with stamp duty concessions and state grants
• Using deposit bonds or equity release if you’re still short

Step 3: Get Pre-Approval

A strong pre-approval is not just a budget check. It is your financial green light, allowing you to negotiate confidently or bid at auction.

Azura Financial prepares, submits, and manages the entire application on your behalf — handling lender conversations and documentation to ensure nothing is missed.

Step 4: Understand the Total Cost to Purchase

Beyond your deposit, budget for stamp duty, legal fees, inspections, and any lender-related costs. These vary depending on state and property type.

Step 5: Make an Offer or Bid at Auction

Once pre-approved, you’re ready to buy. Azura Financial ensures your finance aligns with the settlement timeframe and property structure.

Step 6: Finalise Your Loan and Settle

After your offer is accepted, your broker arranges unconditional loan approval, coordinates with your solicitor, and ensures your structure supports your long-term goals.

Why First Home Buyers Choose Azura Financial

• Access to 60+ lenders, including those supporting the new 5% deposit scheme
• Expertise in managing complex or variable incomes (contractors, nurses, self-employed)
• Guidance to reduce or avoid LMI, and maximise grants and concessions

Frequently Asked Questions by First Home Buyers

Can I get a home loan with a 5% deposit?

Yes — and from October 2025, the new Federal First Home Buyer Deposit Scheme allows eligible buyers to purchase with a 5% deposit and no LMI. Azura Financial can confirm your eligibility, calculate your borrowing power, and manage the application.

What is a strong borrowing profile?

High, stable income, low liabilities, and clear credit history help. But even with variable or self-employed income, Azura Financial can often secure approvals by matching you with the right lender.

How long does the loan process take?

Pre-approval can take 2–5 business days. From offer to settlement, the full process is usually 3–6 weeks depending on lender and property type.

Can I combine the 5% deposit scheme with other grants?

Yes. In most states, you may also be eligible for stamp duty concessions and first home buyer grants. Azura Financial helps structure your finance so you maximise all available incentives.

Ready to Buy Your First Home with Confidence?

At Azura Financial, we do more than help you get approved. We provide strategy, service, and clarity so you can secure your first home — now with the benefit of the new 5% deposit scheme.