Top 10 Ways to Prepare Your First Home Loan Application

You can prepare a solid first home loan application by understanding your deposit options, accessing the right concessions, and gathering documents that match what lenders assess.

Buying your first property in Australia as a migrant involves navigating both federal schemes and state-specific concessions that change regularly. Your application stands out when you understand how lenders view your residency status, how much deposit you genuinely need, and which scheme combinations work for your circumstances.

1. Confirm Your Residency Status and Lender Access

Your visa type determines which lenders will assess your application and whether you can access federal deposit schemes. Australian citizens and permanent residents have access to the full lender panel. Temporary residents typically face a smaller lender pool and different deposit requirements.

Consider someone on a 482 visa looking to purchase in Melbourne. They can apply for a home loan through lenders who accept temporary residents, but they cannot access the Australian Government 5% Deposit Scheme, which requires citizenship or permanent residency. That same buyer would need at least 10% deposit plus lenders mortgage insurance, or 20% deposit to avoid it entirely. If permanent residency is within reach, timing the application after visa approval opens both lower deposit options and competitive rate discounts.

2. Work Out Your True Deposit Requirement

The deposit you need depends on which scheme you qualify for and where you plan to buy. The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with just 5% down and no lenders mortgage insurance. Single parents can enter with 2% deposit. No income caps apply, and no annual place limits exist, but you must apply through one of the 31 participating lenders.

Property price caps vary by location. Sydney allows purchases up to $1,500,000. Melbourne caps at $950,000. Brisbane sits at $1,000,000. Regional caps also increased from October 2025. If you are buying outside these caps or do not qualify for the scheme, you will typically need 10% deposit plus lenders mortgage insurance or 20% deposit to avoid it.

3. Understand Stamp Duty Concessions in Your State

Stamp duty can add tens of thousands to your upfront costs, but every state and territory offers concessions for eligible buyers. Knowing what you qualify for changes your budget immediately.

In New South Wales, full transfer duty exemption applies to properties up to $800,000, with a sliding concession between $800,000 and $1,000,000. Victoria offers full exemption up to $600,000 and concessions from $600,001 to $750,000, applying to both new and established homes. Queensland provides nil transfer duty up to $700,000 on established homes and full concessions on new builds with no price cap from May 2025. South Australia removed price caps on stamp duty concessions for new homes and vacant land as well.

In the Australian Capital Territory, from July 2026, eligible buyers are fully exempt from conveyance duty regardless of property value or household income. The Northern Territory offers a Territory Home Owner Discount of up to $18,601 but does not provide the broad exemptions seen in other states.

4. Access First Home Owner Grants Where They Apply

First home owner grants only apply to new homes or substantially renovated properties. If you are buying an established home, no grant is available in any state or territory.

Queensland offered a $30,000 grant for contracts signed before 30 June 2026. That figure dropped to $15,000 from 1 July 2026 for new homes under $750,000. South Australia provides $15,000 for new homes with no price cap from June 2024. Tasmania increased its grant to $20,000 for new homes from July 2026, subject to assent. The Northern Territory offers a $50,000 HomeGrown Territory Grant for new homes on contracts signed by 30 September 2027.

New South Wales and Victoria both provide $10,000 grants for new builds, with purchase caps of $600,000 and $750,000 respectively. Western Australia also offers $10,000, capped at $750,000 south of the 26th parallel and $1,000,000 north of it.

5. Decide Between Fixed and Variable Interest Rates

Your interest rate structure affects both your repayments and your flexibility. A fixed interest rate locks your repayment amount for a set period, usually between one and five years. A variable interest rate moves with the market, which means repayments can rise or fall.

Fixed rates suit buyers who want certainty and plan to hold the property without making large extra repayments. Variable rates suit those who want flexibility to make additional repayments, access an offset account, or refinance without break costs. Some buyers split their loan, fixing part for certainty and keeping part variable for flexibility.

If you fix your rate and need to exit the loan early, break costs can apply. These costs reflect the difference between your fixed rate and the current market rate, multiplied by the outstanding balance and remaining fixed term. Buyers who may need to sell, refinance, or make large lump sum payments should weigh this carefully.

6. Choose the Right Loan Features for Your Situation

Loan features matter when you want to reduce interest over time or build financial flexibility. An offset account works like a transaction account linked to your home loan. The balance in the offset reduces the amount of interest you pay without locking funds away. Redraw lets you access extra repayments you have made, but some lenders restrict how often you can redraw or charge fees.

If you are a migrant who may return to your home country or relocate interstate for work, an offset account gives you liquidity without penalty. Redraw can work if you are confident you will not need frequent access to funds. Fixed rate loans typically do not offer offset accounts, though some lenders allow limited redraw.

7. Gather the Right Documents for Your Application

Lenders assess your income, expenses, assets, and liabilities to determine what you can borrow. For migrants, proof of residency status is mandatory. You will also need payslips, tax returns if self-employed, bank statements showing genuine savings, and details of any existing debts.

Genuine savings means money you have saved over at least three months, held in your own account. A gifted deposit from family is accepted by most lenders, but you will need a signed declaration that the funds are a gift and not a loan. Some lenders require a portion of your deposit to be genuine savings even when a gift is involved. If you are using the First Home Super Saver Scheme to boost your deposit, you will need records of eligible contributions and a determination from the Australian Taxation Office.

8. Get Pre-Approval Before You Start Searching

Pre-approval tells you how much a lender is willing to lend before you commit to a property. It is conditional, usually valid for three to six months, and can be updated if your circumstances change. Having pre-approval means you can make an offer with confidence and negotiate settlement terms without uncertainty.

For migrants, pre-approval also clarifies which lenders will accept your visa type and what deposit percentage applies. If you are moving from temporary residency to permanent residency, you can secure pre-approval once your visa is granted and search for property immediately.

9. Consider Shared Equity Programs If You Qualify

Shared equity programs let the government contribute part of the purchase price in exchange for equivalent equity. Help to Buy, operative from December 2025, contributes up to 40% for new homes and 30% for existing homes. A minimum 2% deposit is required. Income limits are $100,000 for individuals and $160,000 for joint applicants or single parents. Property price caps vary by location.

Help to Buy is available in New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory, the Northern Territory, and Western Australia. Tasmania opted out. You cannot combine Help to Buy with the Australian Government 5% Deposit Scheme, but you can use it alongside state grants and stamp duty concessions in most jurisdictions.

South Australia also runs a shared equity program through HomeStart, where the state government and lender contribute up to 25% of the purchase price, capped at $200,000. Tasmania administers the MyHome program with similar intent.

10. Check Your Borrowing Capacity Before Committing

Lenders calculate what you can borrow based on your income, living expenses, existing debts, and the loan's interest rate plus a buffer. Borrowing capacity varies between lenders. One lender might approve $600,000 while another approves $650,000 for the same applicant, depending on how they assess your expenses and apply their serviceability buffer.

If you have dependents, rental income, or irregular income from overtime or bonuses, different lenders treat these differently. Running a borrowing capacity assessment before applying helps you target properties within reach and avoid wasting time on homes you cannot finance.

If your circumstance involves a recent pay rise, changing jobs within the same industry, or receiving rental income from a property overseas, these details affect the calculation. Having a broker review your capacity across multiple lenders shows you where you genuinely sit.

Buying your first home as a migrant in Australia involves more than saving a deposit. It means understanding which concessions apply in your state, how your visa status affects lender access, and which loan structure fits your plans. Getting each part right strengthens your application and positions you to move quickly when the right property appears. Call one of our team or book an appointment at a time that works for you.

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