Buying your first home is thrilling—but with shifting government schemes, interest rates and property markets, it’s more important than ever to go in with clarity. As an experienced mortgage broker Australia clients trust, I want to share five crucial insights every first home buyer should know before applying for a “first home buyer loan” in 2025.
1. The Expanded Home Guarantee Scheme — What’s New from October 2025
From 1 October 2025, the Australian Government removes place and income limits on the Home Guarantee (formerly First Home Guarantee) scheme.
Property price caps are also being increased to reflect current market values. Under the scheme, eligible first home buyers with as little as 5% deposit may avoid Lenders’ Mortgage Insurance (LMI) because Housing Australia guarantees the shortfall.
2. Deposit & Savings: Real Expectations
The average new home loan in Australia is around $659,922 in 2025 ([Money.com.au](https://www.money.com.au/home-loans/home-loan-statistics)). First home buyers often use 5–10% deposits (with scheme support) or aim for 20% to avoid extra costs. According to Finder, around 78% of first-timers apply or plan to apply for government support schemes ([Finder Report 2025]
Tips to accelerate your deposit:
• Automate savings with a separate “home deposit” account
• Consider small monthly adjustments
• Factor in stamp duty and legal costs early
3. Choosing the “Best Mortgage Rates” vs What Fits You
Interest rates matter, but features and fees—offset accounts, redraw, flexible repayments—can matter even more. Compare variable, fixed, and split loans carefully.
4. Stamp Duty, Grants & State Schemes
Each state has its own stamp duty concessions and First Home Owner Grant (FHOG). Check your state’s eligibility details.
5. The Power of a Mortgage Broker Australia-Wide
A broker compares dozens of lenders to find suitable home loan options and guide you through the process.
Conclusion:
Becoming a homeowner is a journey of many decisions. For tailored advice, reach out for a free chat about your first home buyer loan options.
Meta Title: First Home Buyer Guide 2025 — Key Insights
Meta Description: Discover five essential insights for first home buyers in Australia — schemes, deposits, rates, stamp duty & more.
Image Ideas:
– Australian couple reviewing home plans
– New homeowner unlocking their first door
REFERENCES:
[Housing Australia – Home Guarantee Update](https://www.housingaustralia.gov.au/media/unlimited-places-higher-property-price-caps-first-home-buyers-1-october-2025)
(https://www.finder.com.au/insights/first-home-buyer-report-2025)).
