How to Apply for a Home Loan: Guide for Gold Coast First Home Buyers

Knowing how to apply for a home loan is often the first big step for first-time homebuyers on the Gold Coast—and it can feel like uncharted territory. Hence, understanding the process is crucial because it helps you avoid costly mistakes and sets you up for a smooth property purchase.

For many, navigating lender requirements, paperwork, and eligibility criteria can be overwhelming. That’s where mortgage brokers step in. Brokers, such as LM Edge, help simplify the journey by offering personalised guidance and access to suitable loan options tailored to borrowers' needs. 

In this guide, we’ll break down the home loan process step by step so you can move forward with confidence with your homeownership goals.

What Is a Home Loan and How Does It Work?

A home loan, also known as a mortgage, is a loan provided by a lender to help you finance the purchase of a residential property. Instead of paying the full purchase price upfront, the lender covers most of the cost, and you repay the loan over time with interest.

Here’s how it works:

• Loan Principal: This is the original amount borrowed to buy the property.
• Interest: The cost charged by the lender for borrowing the money. It can have a fixed rate (stays the same) or a variable interest rate (can fluctuate over time).
• Loan Term: The length of time you have to repay the loan, usually between 25 and 30 years.
• Repayments: Payments are made regularly (weekly, fortnightly, or monthly) and include a portion of the principal and interest.

Some loans offer features like interest-only, offset accounts or redraw facilities, which can help manage repayments more effectively. Understanding these basics ensures you’re prepared to choose a loan that suits your financial position and long-term goals.

How to Know If You’re Eligible for a Home Loan

Before starting your home loan journey, it’s important to understand if you meet the general eligibility criteria. While the requirements are fairly standard, they can vary depending on the lender, the type of loan product, and even your profession or financial background.

Here are the common factors lenders assess:

• Income and Employment: Proof of stable income to demonstrate your ability to make loan repayments.
• Credit History: A good credit score shows you’re a reliable borrower.
• Deposit Requirements: Most lenders require a minimum deposit of 20% of the purchase price.
• Existing Debts: Any personal loans, credit card balances, or ongoing financial commitments.
• Residency Status: You typically need to be an Australian citizen or permanent resident.

If you’re unsure, tools like borrowing capacity calculators or guidance from mortgage brokers can help you better understand your eligibility and where you stand financially.

How to Apply for a Home Loan: Step-by-Step Process

Understanding the application process can make your home loan journey much smoother. Here’s a step-by-step breakdown to guide you through:

Step 1:  Research Lenders and Loan Options

Explore loan products from major banks and non-major lenders. Compare interest rates, loan terms, and features while factoring in whether you’ll need Lenders Mortgage Insurance (LMI) if your deposit is less than 20%.

Step 2:  Get Pre-Approval

Pre-approval gives you an estimate of your borrowing capacity and shows sellers you’re serious. It’s also a chance to understand any potential costs like LMI if your deposit doesn’t meet requirements.

Step 3:  Find Your Dream Home

Whether it’s vacant land, block of land, or new-build property, choose a home that fits within your budget and loan approval.

Step 4:  Submit Your Loan Application

Provide required documents like proof of income, tax returns, and bank statements. The lender will assess your application and may conduct a property valuation and building inspection.

Step 5:  Wait for Approval and Finalise the Loan

Once approved, you’ll sign the loan agreement, finalise the loan terms, and factor in any additional costs, such as LMI, if applicable. From there, it’s time to prepare for settlement and move into your new home!

Working with a mortgage broker during this process can help you navigate complexities like LMI and ensure everything runs smoothly.

Insights into the Gold Coast Property Market for First Home Buyers in 2025

The Gold Coast property market continues to attract first-home buyers with its mix of affordability, lifestyle appeal, and steady growth. 

According to the latest CoreLogic report, as of early 2024, the median house price on the Gold Coast sits at approximately $950,000, while units average around $665,000. Despite rising interest rates, the market has shown resilience, with property values increasing by 7.2% over the past year (CoreLogic).

In 2025, this upward trend is expected to continue, with demand driven by ongoing population growth, infrastructure development, and an influx of buyers relocating from capital cities. The region offers a strong mix of vacant land, land packages, and new-build properties, making it ideal for first-home buyers and those considering property investment.

What makes the Gold Coast appealing?

• A growing job market supported by tourism, construction, and health sectors.
• A high standard of living, with coastal amenities, schools, and transport options.
• Comparatively lower property prices than Sydney or Melbourne.

For first-home buyers looking to enter the property ladder in 2025, the Gold Coast remains a strategic and rewarding choice. 

Other sources: SQM Research, Domain.

Government Grants and Incentives for First-Home Buyers in Gold Coast

For first-home buyers in the Gold Coast, government grants and incentives can significantly ease the financial burden of buying your first residential property. Here are the key programs available in Queensland:

1.  First Home Owner Grant (FHOG):  The Queensland Government offers a one-off grant of $15,000 for eligible applicants purchasing or building a new-build property or eligible building contract. The property price cap is $750,000.

2.  Stamp Duty Concessions:  Eligible first-home buyers can receive stamp duty relief or full exemptions on properties valued up to $500,000. Partial concessions apply for homes up to $550,000.

3.  First Home Loan Deposit Scheme:  This government scheme allows eligible buyers to purchase a home with as little as a 5% deposit, without the need for Lenders Mortgage Insurance (LMI).

4.  Regional Home Building Boost Grant:  For buyers purchasing or building in regional centres of Queensland, an additional $5,000 grant is available for eligible properties.

These incentives are designed to make the buying journey more accessible and affordable. Always check the latest eligibility details with the QLD Revenue Office to ensure you’re taking full advantage of these opportunities.

Case Study: How the Smith Family Bought Their First Home on the Gold Coast

The Smith family, a young couple with two children, dreamed of buying their first residential property in the Gold Coast. With a combined taxable income of $120,000 per year, they initially struggled to save a 20% deposit and feared they would face Lenders Mortgage Insurance (LMI) costs.

After consulting a mortgage broker, they learned about the First Home Owner Grant (FHOG), which provided them with $15,000 toward their new-build property. They also qualified for the First Home Loan Deposit Scheme, allowing them to purchase their home with only a 5% deposit, without paying LMI.

By working with their broker to explore suitable loan products and understanding their borrowing capacity, the Smiths secured a competitive loan with manageable loan repayments. Today, they are proud homeowners enjoying their exciting journey into homeownership.

This case highlights the importance of exploring government grants, incentives, and working with expert mortgage brokers to achieve your homeownership goals.

Common Mistakes First Home Buyers Should Avoid

Buying your first home is an exciting journey, but it’s easy to make costly mistakes without proper preparation. Here are five common pitfalls first-home buyers need to avoid:

• Overstretching Your Budget: It’s tempting to aim high, but exceeding your borrowing capacity can lead to financial strain. Always factor in loan repayments alongside your lifestyle and spending habits.

• Ignoring Additional Costs: Beyond the purchase price, remember expenses like Stamp Duty, building inspections, legal fees, and Lenders Mortgage Insurance (LMI) if your deposit is below 20%.

• Skipping Pre-Approval: Without pre-approval, you risk falling in love with a property that’s beyond your budget. Pre-approval clarifies your financial position and strengthens your loan application.

• Not Researching Grants and Schemes: First-home buyers often miss out on government grants, stamp duty concessions, or programs like the First Home Loan Deposit Scheme.

• Choosing the Wrong Loan Product: Failing to compare loan products or work with a mortgage broker can mean higher interest rates or unsuitable loan terms.

By avoiding these mistakes, you’ll make your home loan journey smoother and set yourself up for success as a new homeowner.

FAQs

What’s the minimum deposit required for a home loan?

A minimum deposit is usually 20% of the property purchase price, but programs like the loan deposit scheme allow smaller deposits.

Can I apply for a home loan as a single applicant?

Yes, single applicants can qualify for loans, but income and credit history will determine borrowing capacity.

Are there any benefits for first-time home buyers in Queensland?

Yes, government schemes like the FHOG and Stamp Duty concessions provide financial assistance to eligible home buyers.

How long does the home loan approval process take?

The application process typically takes 2–4 weeks, depending on your financial position and lender requirements.

Do I need a mortgage broker to apply for a home loan?

No, but working with expert mortgage brokers can help secure better terms and simplify the buying process.

Can I get a home loan for a granny flat or investment property?

Yes, loan providers offer options for granny flats, investment properties, and company title properties.

How much can I borrow as a first home buyer?

The amount you can borrow depends on your income, expenses, credit history, and borrowing capacity. Most lenders allow you to borrow up to 80–95% of the property purchase price, but borrowing more than 80% may require Lenders Mortgage Insurance (LMI).

What loan do most first-time home buyers use?

Many first-time buyers use standard variable rate loans or fixed-rate loans for stability. Programs like the First Home Loan Deposit Scheme are also popular, allowing buyers to enter the market with a smaller deposit while avoiding LMI.

Final Thoughts

Achieving homeownership in 2025 as a first-time buyer on the Gold Coast is an exciting journey filled with opportunity. By understanding the loan process, exploring government grants, and avoiding common mistakes, you can take confident steps toward owning your dream home. 

If you’re ready to begin your home loan journey, contact LM Edge for a free consultation at 0401 022 182. Our experienced mortgage brokers will help you find the right loan product and guide you every step of the way. 

Let’s make your dream of homeownership a reality—2025 is yours to own!