We Asked A Finance Expert All Your Burning Property Questions

There’s no sugar-coating it: buying your first home can be a bank-breaking, budget-balancing, life-altering rollercoaster that tests you beyond your patience, spreadsheet skills and sanity. 

Deposit targets, loan options, government schemes, hidden costs…There’s a whole lot to understand when it comes to finding a place to call home. 

To help lift the veil on the property fine print, we teamed up with our mates at Homebuyers Centre—with finance, land, home and building services—to ask Resolve Finance expert Chris Cummins the questions that first home buyers in Victoria are actually asking.

From what you can realistically borrow to what support is out there, here’s what you actually need to know before getting started. 

How Much Deposit Do You Actually Need To Get Into The Market?

There’s no one-size-fits-all answer here, but as a general guide, most lenders will consider deposits ranging from around 5% to 20%, depending on your financial situation, the loan type and the property itself. 

In a nutshell, a bigger deposit means a smaller loan, which can help reduce repayments or secure a better rate. The trade-off is that it takes longer to save, which can mean missing out on opportunities in a fast-moving market. 

For eligible buyers, the Australian Government’s 5% Deposit Scheme may allow a purchase with just a 5% deposit (and in some cases as little as 2% for eligible single parents or single legal guardians), with the government guaranteeing part of the loan to avoid Lenders Mortgage Insurance. It’s a great way to get in sooner, but a smaller deposit means borrowing more, which can lead to higher repayments and less flexibility.

It’s also worth remembering upfront costs beyond the deposit—think legal fees, inspections, moving costs and stamp duty. If you’re looking to build or explore your options, Homebuyers Centre, in partnership with Resolve Finance, also offers eligible buyers access to selected house and land packages with a $5K* deposit, subject to criteria.

Bank Vs. Broker: Which One Actually Gets You A Better Deal?

It really comes down to choice.

A bank can only offer its own products. A mortgage broker (aka your financial fairy godparent who speaks fluent spreadsheets), on the other hand, can compare multiple lenders and policies to help match you with a loan that suits your circumstances. 

For first-home buyers, that guidance can make a huge difference when navigating borrowing capacity, government schemes, and application packaging—all the fun, often headache-inducing parts of the process. These clever cookies translate fine print into actual human language, and are legally required to act in your best interests, so you’ll know they’ll prioritise your needs and objectives, and recommend a loan that suits your individual circumstances. 

Deciding What Matters Most When Everything Feels Out Of Reach

Start by splitting your wish list into ‘must-haves’ and ‘nice-to-haves’. The must-haves are the non-negotiable deal breakers, like being able to comfortably afford repayments, a home that’s safe and structurally sound, and something that actually works for your day-to-day life. Everything else (like suburb, size and whether the kitchen has been updated since 1983) should be flexible.

If nothing you’re seeing is hitting the mark, it’s usually not that the ‘perfect’ property doesn’t exist—it’s that your search is too tight for your budget. From here, widen the net: different suburb, smaller footprint, older interiors, or tweaking your timing. 

Some buyers choose a stepping-stone property to get into the market sooner, while others consider building as a way to better match budget and layout needs. Either way, a little flexibility can go a long way, and Homebuyers Centre can help map out house and land options that actually line up with your budget and borrowing capacity. 

Should I Buy An Ok Place And Live In It Myself, Or Rent It Out And Keep Renting In An Area I Love But Can't Afford To Buy? 

This conundrum is so common that it’s earned its own name: rentvesting. It’s the strategy of buying where you can afford, while renting where you actually want to live.

The upside is getting into the market sooner without giving up your lifestyle location. The catch is you’re then juggling both rent AND loan repayments, which is no small feat in the current climate. It can also impact your eligibility for certain grants or stamp duty concessions linked to owner-occupation.

If you’re weighing it up, it’s worth running the numbers with a mortgage broker and looping in an accountant. A little planning here can make the difference between a clever move and a costly one. 

Who Do I Need In My Corner To Start The Process? 

Property dream team, assemble! Number one in your squad should be a mortgage broker: your unofficial translator of borrowing power, bank jargon and approval odds. While not essential, it’s highly recommended for first-home buyers. They’ll help you figure out what you can actually borrow before you fall in love with something wildly out of budget, compare lender products and policies, and guide you through the application process.

From there, it depends on your plans. For rentvesting, investing or anything a little more complex, a financial adviser and/or accountant can save you time, headaches and precious, hard-earned dollary-doo later. The earlier you get the right people in your corner, the smoother the whole process feels. 

How Much Will HECS Affect My Borrowing Power?

Ahhh HECS. That ever-present academic souvenir that tends to outstay its welcome. 

HECS-HELP can take a bit of a bite. It’s essentially an ongoing repayment (much like a car loan or other debt), which can reduce how much you’re able to borrow. Exactly how much it impacts you depends on your income, the size of your debt, and the lender. 

The best move is to be upfront about it with your broker from the get-go so you understand your true borrowing capacity early, rather than making assumptions that don’t stack up later. But don't panic, there are also lender policies that can limit the impact on your borrowing capacity—just chat to your broker, and they'll be able to help you understand your options. 

How Do The Stamp Duty Exemptions/Concessions Work For First-Home Buyers?

Stamp duty isn’t glamorous, but it can make a big difference to upfront costs.

In Victoria, eligible first home buyers may be able to access full exemptions or concessions depending on the price of the property, which can significantly reduce what you pay upfront.

Eligibility usually comes down to whether it’s a first home, your main digs, and the type of property being purchased. The rules vary depending on whether it’s an established home, a new build or vacant land, so it’s worth checking the details before you dive in. The best place to go on this one is a legal advisor or conveyancer, with Homebuyers Centre on hand to help you find a trusted expert to guide you through. 

Got more Q’s for the experts? Homebuyers Centre and Resolve Finance are here to help you make sense of your first-home journey across finance, land and building. Find out more here.

Editor’s note: This article is sponsored by Homebuyers Centre and proudly endorsed by The Urban List. To find out more about who we work with and why read our editorial policy here.

Image: Urban List.

*Terms and conditions apply, see Homebuyers Centre website for details. The building practitioner is ABN Group (Vic) Pty Ltd trading as Homebuyers Centre CDB-U 49215 and Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN 65 079 545 378, Australian Credit Licence No. 385487.​