Buying Your First Home?

Most people use ‘home loan’ and ‘mortgage’ interchangeably, however they actually refer to two entirely separate things.

What is a home loan?

A home loan is the sum of money a lender lends you to purchase your chosen property. You pay this money back to the lender over a number of years, along with interest on the loan calculated at either a variable (fluctuates with the market) or fixed (1 to 10 years) interest rate.

What is a mortgage?

A mortgage is a security measure that’s put in place when you take out your home loan that protects the lender if you default on your repayments. If you don’t pay the money back, the mortgage gives the lender the legal right to sell your property in order to recoup their losses. The mortgage stays in force until you have paid off your home loan, after which time you own the property.

What's the difference?

A home loan is a means of buying a home when you don’t have the money yourself, while a mortgage is a means of guaranteeing a loan and protecting the lender from non-payment.

If you’re planning on buying a property, it’s good to keep informed. You can contact our expert team at Tiimely Home any time if you’re ever unsure or need clarification.

Stamp duty is a state government tax levied on home buyers. The amount depends on the state or territory, purchase price and whether you qualify for any concessions.

Learn more about stamp duty.

If you’re buying your first home, you’ve probably been saving for a while to get your deposit together.

Depending on how successful you’ve been, you’ll have saved either 20% or at the very least 10%, which will determine the type of home loan you’ll be able to get.

If you’ve only managed to save 10% of the property’s value, you’ll be required to take out Lenders Mortgage Insurance (LMI) and establish an offset facility. This can be quite expensive, so it’s best to try and save a 20% deposit if you can.

The type of loan you then opt for will depend on your circumstances, but most first home buyers go for a principal and interest loan, where you pay off the loan amount with interest.

Many also choose a variable interest rate loan, as this usually comes with features that can help you to pay the loan off quicker.

Some people do opt for a fixed rate loan and the advantage of this is you always know how much your repayments will be, allowing you to stay on top of your budget, particularly if it is tight.

Whichever type of loan you opt for as a first home buyer, consider having the lowest interest rate you can get, the shortest loan term you can afford and minimum fees. You can also explore features that will suit your situation such as a redraw facility. You should also get professional financial advice to better understand your options.

Note: If you have a Loan to Valuation Ratio (LVR) of >80%, an offset facility will automatically be part of your Tiimely Own home loan.

The First Home Owner Grant is a national first home buyer scheme designed to help Australians with buying their first property. Each state and territory have their own criteria to be eligible, but in general to be eligible you’ll need to be over the age of 18, a permanent resident or Australian citizen, and you can’t have previously owned a residential property anywhere in Australia.

See below for eligibility criteria for your state or territory:

• Victoria – a $10,000 grant for buying or building a new home valued up to $750,000. Find out more information specific to the Victorian FHOG.
• NSW – a $10,000 grant available for new properties valued up to $600,000 or $750,000 when building a home. Find out more information specific to the New South Wales FHOG.
• Queensland – Up to $30,000 grant to buy or build a new home valued up to $750,000. Find out more information specific to the Queensland FHOG.
• WA – a $10,000 grant for buying or building a new home valued up to $750,000 (south of the 26th parallel) or $1 million (north of the 26th parallel). Find out more information specific to the Western Australian FHOG.
• SA – a $15,000 grant for buying or building a new home valued up to $650,000 (where the contract was entered into on or after 15 June 2023) or $575,000 (where the contract was entered into on or before 14 June 2023). Find out more information specific to the South Australian FHOG.
• ACT - It's a bit complex. Any grants for first home buyers in the ACT is through the new Home buyer concession scheme.
• Tasmania – up to $30,000 grant for buying or building a new home. Find out more information specific to the Tasmanian FHOG.
• NT - A $50,000 grant for buying or building a new home of any value. $10,000 for purchasing an established home. Find out more information specific to the Northern Territory FHOG.

Lenders' Mortgage Insurance is insurance that protects the lender from financial loss if you’re not able to make your repayments and default on the loan.

You’ll need to pay LMI if you borrow more than 80% of a property’s value (i.e. if you have less than a 20% deposit).

Factors that affect how much LMI include:

• The size of the loan - the bigger your loan, the higher the LMI
• Your deposit amount - the smaller the deposit, the higher the cost of LMI
• The purpose of the loan – investors can pay as much as 20% more for LMI than owner occupiers
• Your employment status – how much you earn and whether your work is full time or casual
• The insurer - premiums differ between insurers

LMI can cost you thousands of dollars, however there are ways to avoid paying LMI or reducing how much you pay including:

• Ensuring your deposit is 20% or as large a deposit as possible to lower the LMI premium
• Having a guarantor on your loan (Tiimely Own home loans don't offer guarantor loans, however our brokers can assist you in finding a suitable guarantor loan)
• Applying for the Home Guarantee Scheme (HGS), eligible first-home buyers to borrow up to 95% of the property value without paying LMI

The First Home Owner Grant is a national first home buyer scheme designed to help Australians buying their first property. Each state and territory have their own eligibility criteria, but in general you’ll need to be over the age of 18, a permanent resident or Australian citizen, and not previously owned a residential property anywhere in Australia.

Below is a state-by-state breakdown (updated April 2026)

Victoria

• $10,000 if you buy or build a new home worth $750,000 or less.
• The home must be new, which can include off the plan and substantially renovated homes.
• At least one applicant must be 18 or over, and at least one must be an Australian citizen or permanent resident.
• At least one applicant must move in within 12 months and live there for at least 12 months. You may still be eligible if you owned property after 1 July 2000 but never lived in it as your home.

Find out more about the Victorian FHOG.

New South Wales

• $10,000 if you buy or build your first new home.
• A new or substantially renovated home must be $600,000 or less. A house and land package must be $750,000 or less in total.
• You must be 18 or over, apply as an individual, and at least one applicant must be an Australian citizen or permanent resident.
• You must move in within 12 months and live there for 12 continuous months. You may still be eligible if you owned property after 1 July 2000 but didn’t live in it for more than 6 continuous months.

Find out more information specific to the New South Wales FHOG.

Queensland

• $30,000 for eligible contracts signed between 20 November 2023 and 30 June 2026.
• The grant is for new homes only, including substantially renovated homes, and the home must be worth less than $750,000.
• You must be 18 or over, and at least one applicant must be an Australian citizen or permanent resident.
• You must move in within 12 months and live there for at least 6 months.

Find out more information specific to the Queensland FHOG.

Western Australia

• Up to $10,000 if you buy or build your first new home.
• Homes south of the 26th parallel can be worth up to $750,000. Homes north of the 26th parallel can be worth up to $1,000,000.
• Applicants must be 18 or over, and at least one applicant must be an Australian citizen or permanent resident.
• At least one applicant must move in within 12 months and all applicants must live there for a continuous period of at least 6 months.

Find out more information specific to the Western Australian FHOG.

South Australia

• Up to $15,000 if you buy or build a new home in South Australia.
• It can apply to new homes, off the plan purchases, substantially renovated homes, building contracts, and owner builder projects.
• For contracts signed on or after 6 June 2024, there is no property value cap.
• Applicants must be 18 or over and at least one applicant must be an Australian citizen, permanent resident, or eligible New Zealand citizen.

Find out more information specific to the South Australian FHOG.

Australian Capital Territory

• The First Home Owner Grant is no longer available in the ACT.
• Support is available through the Home Buyer Concession Scheme, which reduces or removes stamp duty instead of paying a cash grant.
• In 2025 to 2026, eligible buyers can pay no duty on homes up to $1,020,000.
• The scheme can apply to new homes, existing homes, and vacant residential land, but income limits and residency rules apply.

Find out more informaton on the ACT Home Buyer Concession Scheme

Tasmania

• $30,000 may be available for eligible transactions between 1 July 2025 and 30 June 2026.
• The grant is for new homes only.
• Applicants must be 18 or over and at least one applicant must be an Australian citizen or permanent resident.
• You must move in within 12 months and live there for at least 6 continuous months.

Find out more information specific to the Tasmanian FHOG.

Northern Territory

• $50,000 is available for eligible first home buyers who buy or build a new home in the NT with contracts signed between 1 October 2024 and 30 September 2027.
• $10,000 is available for eligible first home buyers who buy an established home with contracts signed between 1 October 2024 and 30 September 2025.
• Applicants must be 18 or over, apply as people rather than a company or trust, and at least one applicant must be an Australian citizen or permanent resident. You must live in the home for at least 12 months.

Find out more information specific to the HomeGrown Territory Grant.