Everything You Need to Know About Buying Your First Home

Buying your first home in Auburn starts with understanding what you can borrow and what help is available.

Auburn sits within the NSW first home buyer framework, which means you have access to state stamp duty concessions, a $10,000 grant on new builds, and the expanded First Home Guarantee that allows you to purchase with a 5% deposit without paying Lenders Mortgage Insurance. For many buyers in Auburn, where unit stock is plentiful and established homes sit within the stamp duty concession threshold, that combination can make a real difference to how quickly you can move.

The decision you are making right now is whether you have enough saved, which property type to target, and how to structure your application so it gets approved. This article walks through the deposit options, the NSW concessions that apply in Auburn, and the loan structures that work for buyers with typical savings and income.

How Much Deposit Do You Actually Need?

You can purchase with as little as 5% of the property price saved if you qualify for the First Home Guarantee. The scheme was expanded in October 2025 with no income caps and no location limits, which means most first home buyers in Auburn can apply as long as they meet the property price threshold and have not owned a home before.

Under this scheme, the government guarantees part of your loan, which removes the need for Lenders Mortgage Insurance even though you are borrowing more than 80% of the property value. That insurance would typically add $10,000 to $20,000 to your upfront costs depending on the loan size, so avoiding it is a real saving.

If you do not qualify or prefer not to use the scheme, a 10% deposit is the next option. You will pay LMI at that level, but it is still lower than waiting to save 20%. Some lenders also accept gifted deposits from immediate family, which can top up your savings if you are close but not quite there.

NSW Stamp Duty Concessions in Auburn

Eligible first home buyers in NSW pay no stamp duty on properties valued under $800,000, and no duty on vacant land under $350,000. Given Auburn's median unit and house prices, most first home buyers here fall within that threshold and will not pay any duty at all.

Consider a buyer purchasing a two-bedroom unit in Auburn. If the property is valued at $750,000 and they meet the eligibility criteria, they pay $0 in stamp duty. Without the concession, that same buyer would pay approximately $28,000. That difference either goes back into your savings buffer or reduces how much you need to borrow.

To qualify, you must be an Australian citizen or permanent resident, at least 18 years old, and you or your spouse must not have previously owned property in Australia. The property must also become your principal place of residence within 12 months and remain so for at least six continuous months.

The $10,000 NSW First Home Owner Grant

If you are buying or building a new home in Auburn, you may be eligible for a $10,000 grant. The property must be valued up to $600,000 for a new home, or up to $750,000 for a new house and land package.

This grant applies to new builds only, so it does not cover established homes or units in older developments. It is paid after settlement and can be used to cover costs or reduce your loan balance. You can combine this grant with the stamp duty concession and the First Home Guarantee, which stacks the benefits.

In Auburn, most new home opportunities are house and land packages on the outer edges of the suburb or newly completed apartment developments. If you are buying an established unit closer to the station or shopping precincts, the grant will not apply, but the stamp duty saving still will.

First Home Guarantee or a 10% Deposit?

The First Home Guarantee removes LMI, but it does come with a property price cap. In NSW, the cap is $900,000 for existing homes and $950,000 for new builds. Most properties in Auburn sit comfortably under that limit, so the scheme is accessible for the majority of buyers here.

If you choose to go with a 10% deposit outside the scheme, you will pay LMI, but you will have more flexibility in terms of lender choice and loan features. Some lenders also offer slightly better rates or offset accounts to borrowers with a 10% deposit compared to those using the guarantee.

In our experience, buyers who have 10% saved but are just shy of the 20% threshold often benefit from using the guarantee, particularly if they want to preserve cash for furniture, repairs, or an emergency buffer after settlement.

What Lenders Actually Look At in Your Application

Your deposit is only part of the approval process. Lenders assess your income, existing debts, living expenses, and credit history to determine how much they will lend you.

Income includes your salary, but it can also include overtime, bonuses, rental income, or government benefits depending on the lender. If you have casual or part-time work, most lenders want to see at least 12 months of consistent hours. Self-employed buyers typically need two years of tax returns and financials.

Existing debts reduce your borrowing capacity. That includes credit cards, personal loans, car finance, and Buy Now Pay Later accounts. Even if your credit card has a $0 balance, the lender will assume you could draw the full limit and factor that into their calculations. Closing or reducing limits before you apply can increase how much you are approved for.

Living expenses are assessed using either your actual spending or a benchmark figure called the Household Expenditure Measure, whichever is higher. If your spending is unusually high in the months before you apply, it can affect your borrowing power.

Fixed or Variable Rate for Your First Home Loan?

Most first home buyers choose a split loan structure, with part of the loan on a fixed rate and part on a variable rate. This gives you some certainty around repayments while keeping access to an offset account and the flexibility to make extra repayments on the variable portion.

A variable rate loan typically comes with an offset account, which is a transaction account linked to your loan. Any balance in the offset reduces the interest you pay. If you have $20,000 in your offset and a $500,000 loan, you only pay interest on $480,000.

A fixed rate loan locks in your rate for a set period, usually one to five years. You will not benefit from rate cuts during that time, but you also will not be affected by rate rises. Most fixed rate loans do not come with an offset, and they limit how much extra you can repay each year without penalty.

Splitting your loan 50/50 or 60/40 between variable and fixed gives you access to an offset on the variable portion while protecting part of your repayment from rate changes. Which split works for you depends on your income stability, savings habits, and how much flexibility you want.

Using the First Home Super Saver Scheme

The First Home Super Saver Scheme allows you to save for a deposit inside your superannuation fund, where contributions are taxed at 15% instead of your marginal tax rate. You can contribute up to $15,000 per financial year and withdraw up to $50,000 in total to use as a deposit.

If you earn $80,000 a year and salary sacrifice $10,000 into super, you save roughly $2,050 in tax compared to saving the same amount in a standard bank account. Over a few years, that adds up and can bring your deposit target forward.

You apply to the ATO to release the funds once you are ready to buy. The withdrawn amount is added to your taxable income for that year, but you receive a 30% tax offset, so the effective tax rate is low. The scheme works well if you are planning to buy within the next few years and can afford to set aside regular contributions.

Should You Use a Broker or Go Direct to a Lender?

A mortgage broker can access multiple lenders and compare loan features, rates, and approval criteria without you needing to apply to each one separately. This is particularly helpful if your situation is not straightforward, such as casual income, a recent credit issue, or a low deposit.

Brokers also handle the paperwork, liaise with the lender, and help you structure the loan in a way that suits your circumstances. If you are applying for the First Home Guarantee, a broker can identify which lenders have allocation remaining and which ones are more likely to approve your application based on your income and deposit source.

Going direct to a lender works if you already know which bank you want to use and your situation fits their standard criteria. You will not pay any extra to use a broker, as they are paid by the lender once your loan settles, so there is no financial downside to getting advice before you apply.

What Happens After Pre-Approval?

Pre-approval gives you a conditional commitment from a lender based on the information you have provided. It is valid for three to six months depending on the lender, and it allows you to make an offer on a property with confidence that you can secure finance.

Once you find a property and your offer is accepted, you move to formal approval. The lender will order a valuation to confirm the property is worth what you are paying, and they will request final documents such as your contract of sale, updated payslips, and bank statements.

If the valuation comes in under the purchase price, the lender will only lend based on their valuation figure, which means you will need to make up the shortfall with additional deposit or renegotiate the price. This is more common in a rising market or when buying off-the-plan.

Settlement usually occurs four to six weeks after the contracts are exchanged, though this can vary. Your conveyancer or solicitor will coordinate the final checks, transfer of funds, and registration of the property in your name.

Call one of our team or book an appointment at a time that works for you. We work with Auburn buyers regularly and can walk you through the deposit options, concessions, and loan structures that apply to your situation.

Frequently Asked Questions