First Home Buyers in Australia: Common Challenges and How to Overcome Them
Christian Stevens, Mortgage Broker
Published November 21, 2025, 2:10 P.M ET
First Home Buyers in Australia is a huge milestone — exciting, but let’s be honest, it can also feel overwhelming. From deposit hurdles to confusing loan options, first home buyers often face a learning curve that’s steeper than expected. But with the right advice and preparation, you can navigate the journey confidently.
Let’s break down the most common challenges first home buyers encounter — and more importantly, how to tackle them.
🔑 Key Facts
- First home buyers face unique hurdles: saving a deposit, understanding loans, and entering a competitive market.
- Government schemes and professional advice can significantly ease the journey.
- Careful planning and smart financial strategies help first home buyers succeed.
Saving for a Deposit
Saving enough for a 20% deposit can feel impossible, especially with rising property prices.
- Set realistic goals: Start by calculating exactly how much you need, factoring in costs like stamp duty and legal fees.
- Leverage government grants: Investigate the First Home Owner Grant (FHOG) and schemes like the First Home Guarantee (FHBG) which allow as little as 5% deposit with no LMI.
- Use the First Home Super Saver Scheme (FHSSS): This allows you to save for a deposit using your superannuation, taking advantage of concessional tax rates.
Understanding Home Loans
Not all home loans are created equal. Between fixed, variable, split loans, and all the features (like offset accounts or redraw facilities), it can be a lot to digest.
- Talk to a broker: Flint’s expert brokers explain your options in plain English.
- Focus on features you’ll actually use: For example, an offset account can save you significant interest over time.
- Get pre-approval early: This gives you a clear budget and strengthens your negotiating position.
Rising Property Prices and Competition
In a hot market, it’s easy to feel priced out or rushed into a decision.
- Be flexible: Expand your search to emerging suburbs, regional areas, or consider townhouses or apartments instead of standalone houses.
- Set a firm budget: Know your ceiling and stick to it, no matter how tempting the bidding war.
- Act quickly but wisely: Pre-approval helps you move fast, but always do your due diligence.
Managing Additional Costs
- Budget for at least 5% extra: Beyond your deposit, allow a buffer for these additional costs.
- Check for stamp duty concessions: Many states offer significant discounts or exemptions for first home buyers.
- Use Flint’s calculators: Our tools help you estimate total costs accurately.
- Compare 100% offset options across lenders
- Calculate potential savings based on your cash flow
- Bundle offset features with flexible fixed/variable loan structures
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