First Home Buyer Loans Sydney Inner West

Expert home loan advice, government grants, and tailored support for first home buyers in Sydney’s Inner West.

Where to Start When Buying Your First Home

1. Understand What You Can Afford

Start by reviewing your income, regular expenses, existing debts and available savings. These factors can affect your borrowing capacity and the home loan options available to you.

A mortgage broker can help you estimate how much you may be able to borrow and explain how different loan amounts, interest rates and loan terms could affect your home loan repayments.

Understanding your financial position before looking at property can also help you set a more realistic purchasing budget.

2. Build Your Home Deposit

Your deposit is an important part of purchasing your first home.

While a larger deposit can reduce the amount you need to borrow, eligible first home buyers may have options that allow them to purchase with a smaller deposit.

Depending on the loan, lender and your circumstances, Lenders Mortgage Insurance may apply when borrowing a higher percentage of the property value. Lenders Mortgage Insurance, commonly known as LMI, generally protects the lender rather than the borrower.

Eligible buyers may also be able to access government assistance that reduces the deposit required without paying LMI.

Your mortgage broker can help you understand the deposit and genuine savings requirements that may apply to different lenders and loan options.

3. Compare First Home Buyer Loan Options

Not every home loan works the same way.

First home buyer loans can have different interest rates, fees, repayment structures, loan terms and features. Depending on the lender and loan product, you may be able to consider a variable rate home loan, fixed rate loan or a combination of fixed and variable lending.

Some home loans may also provide features such as an offset account, redraw facility, additional repayments or extra repayments. Availability and conditions vary between lenders and loan products.

Rather than looking only at the advertised interest rate, it is important to consider the overall loan structure, applicable fees and whether the features suit your circumstances and plans.

Our mortgage brokers can compare suitable home loan options from our lender panel and explain the differences before you make a decision.

4. Get Home Loan Pre-Approval

Pre-approval can give you a clearer understanding of your potential borrowing limit before you begin making serious offers on a property.

When assessing an application, a lender may consider your income, living expenses, existing debts, credit history, deposit and other aspects of your financial situation.

Having pre-approval can help you search for property within an appropriate price range, but pre-approval is not unconditional approval. Final approval remains subject to the lender’s requirements and assessment of the property and application.

5. Find and Buy Your First Home

Once you understand your budget and finance position, you can start searching for your first property.

Consider the purchase price as well as ongoing costs and how your expected monthly repayments will fit within your budget.

Before entering into a contract, consider obtaining appropriate legal or conveyancing advice and make sure you understand any conditions that may apply to the purchase.

6. Finalise Your Home Loan and Settlement

Once you have found a property and your offer has been accepted, your home loan application can move towards formal assessment and approval.

Our team can assist with the lending process, communicate with the lender, help organise required financial information and keep you informed as your loan progresses towards settlement.

Navigating Government Grants and Incentives

Government Assistance for First Home Buyers

Eligible first home buyers may be able to access government schemes designed to assist with a deposit or some of the upfront costs associated with purchasing a property.

Eligibility requirements, property price caps and other conditions can change, so it is important to check the current government requirements before relying on a particular scheme.

Australian Government 5% Deposit Scheme

The Australian Government 5% Deposit Scheme is designed to help eligible home buyers purchase a home with a smaller deposit.

Eligible first home buyers may be able to purchase a property with a deposit from 5% without paying Lenders Mortgage Insurance.

The scheme is administered by Housing Australia, with applications made through participating lenders. Eligibility requirements and property price caps apply, and borrowers must still satisfy the participating lender’s lending criteria.

Our mortgage brokers can help you understand how the scheme may relate to your home loan options and whether a participating lender available through our lender panel may be suitable for your circumstances.

Support for Eligible Single Parents

The Australian Government 5% Deposit Scheme also provides support for eligible single parents and eligible legal guardians.

Eligible single parents or legal guardians may be able to purchase a home with a deposit from 2% without paying Lenders Mortgage Insurance, subject to the current scheme requirements and participating lender approval.

If you are a single parent working towards home ownership, we can help you understand the lending process, borrowing capacity and suitable home loan options based on your circumstances.

Current eligibility requirements can be checked through Housing Australia.

Support for Eligible Single Parents

First Home Buyers Assistance Scheme NSW

The First Home Buyers Assistance Scheme – Revenue NSW may help eligible first home buyers reduce the transfer duty payable when purchasing their first property.

Eligible buyers purchasing a new or existing home valued at $800,000 or less may receive a full transfer duty exemption. Concessional rates may apply to eligible properties valued above $800,000 and below $1 million.

Different thresholds apply to eligible vacant land.

Eligibility requirements apply, so buyers should check the current Revenue NSW information when planning their purchase.

Support for Eligible Single Parents

First Home Super Saver Scheme

The First Home Super Saver Scheme – Australian Taxation Office may help eligible first home buyers save towards a deposit through voluntary contributions to superannuation.

Eligible contributions are subject to annual and overall limits, along with other requirements governing how and when funds can be released.

If you are considering using the First Home Super Saver Scheme towards your deposit, check the current ATO requirements before making financial decisions based on the scheme.

Tips for Spending Less

Shop from your kitchen

Forget buying work lunches and organise lunch the night before. An average lunch costs $12, that’s $60 a week. You’ll potentially save around $2,880 a year.

DIY coffee or tea if you’re game

Drink the stuff they provide free at work. With savings of $25-$50 a week (depending on your current habit), who really needs “the perfect latte”?

Choose now to save the planet

Turn lights off when you leave a room, don’t leave electrical items on stand-by, and rug up or strip down so you use and pay for less heating or cooling.

Save on your home running costs

Make sure you’re not paying too much on home utilities (electricity, gas, internet and phone). Concierge Living can review all of your plans for free to make sure you’ve got the most competitive deal.

Navigating Government Grants and Incentives

Understanding Your First Home Loan Repayments

Your home loan repayments will depend on several factors, including the amount borrowed, interest rate, loan term and repayment structure.

A lower interest rate can reduce interest costs, but the interest rate should not be the only factor considered when comparing first home buyer loans.

Fees, loan features, repayment flexibility and your longer-term plans can also affect whether a home loan is suitable for your circumstances.

Depending on the loan product, available features and options may include:

variable interest rates
fixed interest rates
principal and interest repayments
additional repayments
extra repayments
offset accounts
redraw facilities

Features and conditions vary between lenders and home loan products.

Understanding your expected monthly repayments before committing to a property can help you determine whether the home loan is manageable alongside your other living expenses.

Fixed Rate or Variable Rate Home Loan?

First home buyers may have the option of choosing a fixed rate loan, variable rate home loan or a combination of the two.

With a variable rate home loan, the interest rate can change over the loan term. Depending on the product, variable loans may also provide greater flexibility for additional repayments, redraw or offset facilities.

A fixed rate loan generally provides a fixed interest rate for an agreed period, which can provide greater certainty around repayments during that period. However, restrictions may apply to additional repayments and other loan features.

The appropriate option depends on your financial circumstances, preferences and the home loan products available to you.

Lenders Mortgage Insurance and Your Deposit

Lenders Mortgage Insurance may apply when your deposit is below the lender’s required threshold.

Although the borrower generally pays the cost, lender mortgage insurance protects the lender if the borrower cannot repay the home loan and the lender experiences a loss after the property is sold.

The cost of LMI can vary depending on factors such as the loan amount, deposit and property value.

Some eligible first home buyers may be able to avoid LMI through an applicable government guarantee scheme, while others may choose to save a larger deposit.

A mortgage broker can explain how different deposit amounts may affect the home loans available to you.

Genuine Savings for a First Home Buyer Loan

Depending on the lender and loan structure, you may need to demonstrate genuine savings as part of your home loan application.

Genuine savings generally refers to money that you have accumulated and held over a period of time rather than funds borrowed specifically for the deposit.

Requirements differ between lenders, and not every first home buyer loan is assessed in exactly the same way.

If you are unsure whether your current deposit meets a lender’s genuine savings requirements, our mortgage brokers can review your circumstances and explain the lending options that may be available.

First Home Buyer Loans in Sydney’s Inner West

Sydney’s Inner West offers a diverse property market with established homes, terraces, apartments and newer developments across different suburbs.

Popular areas such as Marrickville, Leichhardt, Newtown and Balmain can have very different property values and housing options, so understanding your borrowing capacity before beginning your property search is particularly important.

For first home buyers, the purchase price is only one part of the decision. Your deposit, expected home loan repayments, purchasing costs and longer-term financial position should also be considered.

Our mortgage brokers work with first home buyers across Sydney’s Inner West to help them understand their finance options and navigate the home loan process.

How a Mortgage Broker Can Help First Home Buyers

Applying for your first home loan can involve unfamiliar terminology, different lender requirements and a significant amount of paperwork.

A mortgage broker can help explain the process and compare suitable loan options based on your circumstances.

Stellar Finance Group can help first home buyers:

assess borrowing capacity and potential monthly repayments
understand deposit and genuine savings requirements
compare suitable home loans from our lender panel
understand interest rates, loan terms and applicable fees
understand when Lenders Mortgage Insurance may apply
compare relevant fixed and variable rate loan options
navigate home loan pre-approval
prepare and submit a home loan application
understand relevant first home buyer schemes they may be eligible for
communicate with the lender during the application process
manage the lending process through to settlement

Why Choose Stellar Finance Group for Your First Home Loan?

Buying your first home can feel complicated, particularly when you are comparing lenders, home loan options, deposit requirements and government assistance at the same time.

Our approach is based on your individual circumstances.

Rather than simply focusing on one home loan or one interest rate, we take the time to understand your income, expenses, deposit, property goals and longer-term plans before considering suitable lending options.

We can explain the home loan process in straightforward terms and keep you informed from the initial discussion through to settlement.

What Our Clients Say

      EXCELLENT  
   Based on 208 reviews 
    
 
 
 
   
 
 
       Posted on Google  
   
   Rommel Tacadena 
 
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with Stellar Finance Group while organising finance for our investment property. The team was highly responsive, prompt in answering all our queries, and made the entire process smooth and stress-free.

Lisa B was exceptional — her attention to detail, proactive communication, and genuine care throughout the process really made us feel comfortable in our decision making. She consistently kept us informed, anticipated potential issues before they arose, and made what could have been a complicated process feel effortless. Her professionalism and dedication gave us complete confidence every step of the way.

Rico A was also a pleasure to work with — knowledgeable, efficient, and always willing to help, ensuring everything progressed smoothly.

Overall, the team was an absolute pleasure to deal with from start to finish. We wouldn’t hesitate to do business with them again and highly recommend their services.
  
 
      Posted on Google  
   
   Isla Daze 
 
 
 
 Trustindex verifies that the original source of the review is Google. We love everything about STELLAR! The Team were so helpful and friendly along the way! This was our first property purchase and they made the entire steps and process so easy and stress free! The regular and consistent check-ins and they're professionalism was fantastic! Highly recommend Lisa and the Team! Rico was our go to member and his knowledge and understanding in the field is commendable! Thanks Stellar, we are so grateful for choosing you to support us in this journey and we are forever grateful for you all for making it easy and simply along the way! A pleasure working with you 🙏🏽 ☺️
  
 
      Posted on Google  
   
   leesa di lorenzo 
 
 
 
 Trustindex verifies that the original source of the review is Google. Lisa, Carl, and Rico were amazing—supportive, knowledgeable, and professional throughout the entire process. They took all the guesswork out, made sure I was fully informed every step of the way, and delivered great results. Highly recommend!
  
 
      Posted on Google  
   
   Sue Coppersmith 
 
 
 
 Trustindex verifies that the original source of the review is Google. Lisa is great—really knowledgeable and helpful. Strong recommend!
  
 
      Posted on Google  
   
   The Scotts 
 
 
 
 Trustindex verifies that the original source of the review is Google. A big thanks to Lisa and the team for their help and guidance in assisting us in securing a better deal on our home loan. They were a pleasure to deal with right throughout the process and we would highly recommend their services if you are looking for an excellent mortgage broker!
  
 
      Posted on Google  
   
   Rob Blank 
 
 
 
 Trustindex verifies that the original source of the review is Google. Well informed, well connected, well organized, sensible, diligent, and a good communicator.  I have only praise.
  
 
      Posted on Google  
   
   Sarah MacDonald 
 
 
 
 Trustindex verifies that the original source of the review is Google. Lisa, Carl and Rico recently helped me purchase my first home. They were highly professional and dedicated to getting the job done. With their help, the process was smooth and much less stressful for me. I recommend these guys if you are novice to the industry and need someone to get the job done with a minimum of fuss.
  
 
      Posted on Google  
   
   Ben Rickwood 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had a fantastic experience working with Lisa, Rico, and the team. They took all the stress out of buying my first home and were incredibly supportive from start to finish. The whole team was professional, fast, and really cared about my goals. Navigating a cooling off period with a public holiday was stressful, but they delivered without any hiccups. Highly recommend!
  
 
      Posted on Google  
   
   Jen Jamieson 
 
 
 
 Trustindex verifies that the original source of the review is Google. Lisa has been amazing from the moment I spoke with her.
Supportive, generous, understanding and patient.
I was searching for a broker who's a woman and can't be happier I found Stellar.
thank you

Frequently Asked Questions About First Home Buyer Loans

How much deposit do I need for my first home?

The deposit required depends on the lender, home loan, property and your financial circumstances. Some eligible first home buyers may qualify for government assistance that allows them to purchase with a smaller deposit. Lenders Mortgage Insurance may apply to some higher loan-to-value lending.

Can I buy my first home with a 5% deposit?

Eligible first home buyers may be able to purchase with a deposit from 5% through the Australian Government 5% Deposit Scheme, subject to scheme eligibility and participating lender approval. Other low-deposit home loan options may also be available depending on your circumstances.

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance, or LMI, generally protects the lender if a borrower defaults and the lender experiences a loss after selling the property. LMI may apply when borrowing a higher percentage of the property value.

How much can I borrow for my first home?

Your borrowing capacity depends on factors including your income, expenses, existing debts, deposit, credit profile and the lender’s assessment criteria. Different lenders may assess the same financial circumstances differently.

What are genuine savings?

Genuine savings generally refers to money that has been accumulated and held over a period of time. Some lenders may require genuine savings when assessing a first home buyer loan, particularly where the buyer has a smaller deposit. Requirements vary between lenders.

Should I get pre-approval before looking for a property?

Pre-approval can help you understand your potential borrowing limit and establish a more realistic property budget. However, pre-approval is conditional and does not guarantee final home loan approval.

What is the difference between a fixed and variable rate home loan?

A fixed rate loan generally fixes the interest rate for an agreed period, while the interest rate on a variable rate home loan can change. Loan features, fees, repayment flexibility and conditions can also differ between products.

Can I make additional repayments on my first home loan?

Some home loans allow additional repayments or extra repayments. Conditions vary between lenders and products, and some fixed rate loans may restrict the amount of additional repayments that can be made without additional costs.

Can a mortgage broker help with first home buyer schemes?

A mortgage broker can help explain how relevant first home buyer schemes may interact with your home loan application and lending options. Eligibility for government assistance is determined under the applicable scheme rules, while home loan approval remains subject to lender assessment.

Do you help first home buyers in Sydney’s Inner West?

Yes. Stellar Finance Group assists first home buyers across Sydney’s Inner West with borrowing capacity, home loan options, deposits, pre-approval and the lending process through to settlement.