Mortgage for Young First-Time Buyers. Best 2025 Options

Understanding first home buyer eligibility criteria

Before buying your first home, it’s essential to understand whether you meet both lender requirements and government scheme rules. Eligibility for first home buyers in Australia generally comes down to:

• Genuine savings: Typically 3–5% of the purchase price saved over at least three months.

• Stable income: Most lenders prefer 6–12 months of consistent employment, though some accept casual or contract work.

• Clean credit history: Check your score early and fix any issues.

• Government scheme eligibility: Programs like the First Home Owner Grant (FHOG) and First Home Guarantee (FHBG) can reduce your deposit and may remove the need for LMI.

Meeting these basics gives you a strong starting point. For personalised guidance, HeyNest connects you with an independent broker who can assess your profile across multiple lenders.

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Key financial steps to prepare your mortgage application

Preparing financially is the most effective way to boost borrowing power and secure better rates. Young buyers should focus on:

• Reducing debt: Pay down credit cards, car loans, and personal loans to lower your debt-to-income ratio.

• Creating a realistic budget: Lenders examine your spending habits closely, so track expenses for 3–6 months.

• Saving a larger deposit: A 20% deposit avoids LMI and lowers your long-term costs.

• Organising key documents: Payslips, tax returns, ID and statements of assets and liabilities should be ready to go.

A strong financial profile speeds up approval and expands your loan options. HeyNest’s digital platform matches you with a broker who helps you prepare strategically.

Stop Stressing: Why a Broker is the 'Smart, Chill' Way

HeyNest

Traditional Bank

Access to many lenders

Compares and negotiates the best market rates for you.

Dedicated, personalized guide every step of the way.

Only offers their own limited products.

Standard, often non-negotiable in-house rates.

Standardized service; often no single dedicated contact.

The role of a broker in securing your first home loan

For young first home buyers, choosing the right broker can make the biggest difference. An independent broker acts as your advocate, simplifying the process and improving your chances of approval.

• Compares multiple lenders: Accesses hundreds of products you wouldn’t get by going directly to banks.

• Negotiates better terms: Their relationships and volume can lead to lower rates, waived fees or better features.

• Guides your application: Ensures paperwork is complete and meets each lender’s criteria.

• Provides impartial advice: Brokers work for you, not a single bank, helping you choose the right structure and scheme.

Through HeyNest, you’re connected with a vetted, independent expert who removes the stress and helps you secure the best first home loan for your situation.

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Frequently asked questions

How much deposit do I really need as a young first-time buyer?

While the traditional answer is 20%, government schemes can allow you to secure a loan with as little as 5% or even 2% deposit.

What is the most common mistake young first-time buyers make?

Applying for a loan before checking their credit score or taking on new debt just before applying for a mortgage.

Can I get a home loan if I have a student debt?

Yes, but the debt repayment is factored into your living expenses, which reduces the total amount you can borrow.