Your Step-by-Step Guide to Owning Your First Home.
Buying your first home is one of the biggest milestones you’ll ever experience. It’s exciting, but it can also feel confusing and overwhelming, especially when you’re faced with new terms, large sums of money, and a maze of processes that you’ve never encountered before. From saving a deposit and applying for pre-approval, to understanding government schemes and negotiating contracts, there’s a lot to take in. That’s why having the right guidance matters. At AJP Finance, we’ve helped many first home buyers in Melbourne navigate the journey from renting to owning. This guide explains the steps clearly and gives you the knowledge you need to move forward with confidence.
Why Buying Your First Home Matters
Owning your first home is about much more than just leaving the rental market. It gives you security, stability, and the freedom to live on your own terms. Every repayment you make helps you build equity, which increases your ownership stake and creates a valuable financial asset for the future. Over time, your home may also increase in value, giving you capital growth that renting can never provide. Unlike renting, home ownership allows you to personalise your space, renovate, and create a lifestyle that reflects who you are. For many people, it’s the first step towards long-term financial independence.
First Home Buyer Loan Options
As a first home buyer, it’s important to understand the types of loans available. A standard variable loan allows your repayments to rise or fall as interest rates change, which offers flexibility but also means you need to be prepared for potential increases. A fixed rate loan, on the other hand, locks in your interest rate for a set term, usually between one and five years, giving you certainty around repayments. Some buyers choose a split loan, where part of the loan is fixed and part is variable, to enjoy the security of predictable payments while still keeping some flexibility.
If you have a smaller deposit, you may consider a low deposit loan. These allow you to purchase with as little as 5–10% saved, although you may need to pay Lenders Mortgage Insurance (LMI) unless you qualify for a government scheme. For those who are eligible, government-supported loans can help you buy sooner and reduce costs significantly. Choosing the right loan structure is about balancing your goals, your budget, and your appetite for risk.
Government Support for First Home Buyers
The government recognises how challenging it can be to save for and purchase your first home, which is why there are several schemes available to help you. The First Home Owner Grant (FHOG) is a one-off payment to eligible buyers, with the amount varying depending on your state and whether you’re buying a new or established property. Stamp duty concessions can save you thousands, with many states waiving or reducing stamp duty for first home buyers under certain property value thresholds. The First Home Loan Deposit Scheme (FHLDS) allows eligible buyers to purchase with as little as a 5% deposit without paying LMI, although places are limited each year. Some states also offer shared equity schemes, where the government contributes a portion of the purchase price in exchange for a stake in the property, helping reduce the amount you need to borrow. These schemes can change frequently, so it’s always important to confirm the latest eligibility rules before applying.
Your First Home Starts Here
Buying your first home is a big decision, but with the right guidance, it doesn’t have to be overwhelming. The journey is smoother when you understand the steps, know what to expect, and have someone experienced in your corner. At AJP Finance, we specialise in helping Melbourne first home buyers navigate the process with confidence, explaining your options and supporting you from start to finish.
📞 Call 0412 018 732 or 📧 j.singh@ajpfinance.com.au today to start your first home journey with clarity and confidence.
