5 Things First Home Buyers Need to Know Before Talking to a Mortgage Broker
Buying your first home? It is a massive step and a nerve-racking one, too. For first home buyers in Queensland, the process involves more than just finding a property you love. You will deal with things like transfer duty, loan application forms, and even learning about schemes like the First Home Guarantee Scheme or the First Home Owner Grant.
Before you meet with a mortgage broker, it pays to understand the basics. At
LM Edge, our team of home loan brokers on the Gold Coast, Brisbane, and Sunshine Coast have guided countless
first-time buyers through the application process, grants, and government schemes.
In this guide, we will break down the five things you really need to know before speaking with a broker. By the end, you will be able to ask the right questions, avoid common mistakes, and step into home ownership with confidence.
Ready to buy your first home, but not sure where to start? Our Gold Coast mortgage brokers specialise in helping First Home Buyers secure better rates and faster approvals. Call 07 4721 4772 or visit
lmedge.com.au today.
1. Understand Your Credit Score and Why It Matters
What lenders look for
When applying for a home loan, lenders do not just look at your income. They check your credit score and past repayment history. This helps them measure whether you are a safe bet for a loan.
Credit score ranges and how they affect rates
Australia’s scores usually sit between 0 and 1200. A first home buyer with a score above 700 is considered “good,” and may be offered lower rates and fewer conditions. If your score is low, you might face
Lenders Mortgage Insurance (LMI) or stricter checks.
How to check and improve your score
Check your credit file with Equifax or Experian.
Pay bills on time to avoid black marks.
Reduce your credit card limit.
Avoid multiple loan applications at once.
Improving your score before applying is one of the simplest ways to reduce the deposit gap and improve your approval odds.
2. Know How Much You Can Really Afford
Breaking down your budget
It is tempting to look only at the property value when house-hunting, but the full cost of home ownership includes extras like land transfer duty, conveyancing fees, and moving costs.
Factoring in upfront and ongoing costs
Here is a breakdown for Queensland buyers:
- Deposit: Usually 5–20% of the property value (see how to save for a deposit)
- Transfer (stamp) duty: First home buyers may qualify for a duty exemption or refund of duty, depending on conditions set by Queensland Revenue Office (QRO announcements often update concessions)
- Lenders Mortgage Insurance (LMI): If your deposit is below 20%
- Conveyancing/legal fees: $1,000–$2,000
- Building and maintenance services: Initial and ongoing costs to keep your home in shape
- Rates/insurance: Essential for long-term home ownership
Pre-qualification vs real budget
Pre-qualification from a Participating Lender is not the same as knowing your true borrowing power. It does not account for tenancy management costs if you keep a rental home or lifestyle spending.
A realistic budget considers your daily expenses, emergency needs, and future changes like interest-only loans or children.
3. Get Your Financial Paperwork in Order
Documents brokers typically ask for
Having your paperwork ready speeds up your loan application. Common documents include:
- Photo ID and Medicare number
- Payslips and tax returns (check with the Australian Taxation Office for copies)
- Bank statements and loan details
- Rental home agreements, if applicable
- Home Buyer Declaration and Declaration Form
Employment and income history
Stable employment makes a stronger case. If you are self-employed, brokers often need comprehensive building contract records, BAS statements, and evidence of income from buying and supplying services.
Why being organised matters
When contracts are exchanged quickly, missing paperwork can cost you your dream off-the-plan apartment or vacant land lot. Having your Duties Notice of Assessment and Certificate of Title records handy helps the settlement move smoothly. For more, see
how to apply for a home loan.
Don’t let paperwork or confusing grants slow you down. Our mortgage brokers on the Gold Coast make the home loan process simple for First Home Buyers. Call 07 4721 4772 or head to lmedge.com.au for expert support.
4. Learn What a Mortgage Broker Actually Does
Broker vs bank
A bank shows you its own products. A
mortgage broker compares multiple options. For first-time home buyers, this can save thousands over the life of a loan.
How brokers get paid
Most brokers are paid commission by the lender. They do not usually charge you. At LM Edge, our
mortgage brokers on the Gold Coast work with many lenders, giving you broad access to different loan structures.
Questions you should ask your broker
Which government home ownership schemes do I qualify for?
How do grants like the Boost to Buy scheme or the First Home Buyers Assistance scheme work?
What is the difference between the First Home Guarantee and shared equity arrangement programs like the Victorian Homebuyer Fund?
Are there location-specific rules (e.g., residence requirement in QLD)?
What support services are available for public housing tenants transitioning to home ownership?
5. Avoid Common First-Time Buyer Mistakes
Do not chase interest rates only
Rates are important, but off-the-plan concessions or features like redraw can matter more in the long run.
Ignoring flexibility and loan features
Look for:
- Extra repayment options
- Options for a shared equity arrangement if needed
Skipping pre-approval
Without pre-approval, estate agents may not take your offer seriously. You also risk delays at property settlement.
Guide to the First Home Owner Grant in Queensland
The First Home Owner Grant (FHOG) is a lifeline for many. As of 2025, eligible First Home Buyers can receive $30,000 for a new home valued under $750,000.
Eligibility
- Must be a new home, off-the-plan property, or vacant land with a comprehensive building contract (see Construction Loans Gold Coast)
- You must meet the residence requirement (live in the home for at least 12 months)
- You cannot have owned real property in Australia before
Details: Queensland Government FHOG. For more insights, visit our
First Home Owner Grant Queensland guide.
Other programs
Queenslanders may also access:
- Boost to Buy pilot scheme
- Home Guarantee Scheme under Housing Australia and the Australian Government
- Equity contribution programs like the Victorian Homebuyer Fund (other states)
Bonus Tips for First Home Buyers
- Use the Eligibility Tool and Postcode Search Tool for QLD-specific grants.
- Read the Queensland Budget and QRO announcements for duty exemption changes.
- Keep an eye on legislative amendments, like those under the Family Violence Protection Act 2008 or updates affecting Aboriginal and Torres Strait Islander communities.
- If buying primary production land or a family farm exemption applies, check with the Department of Treasury and Finance or the State Revenue Office in your state. For investment-focused buyers, see our Guide to Investment Loans Gold Coast.
Buying your first home? Get the guidance you need from LM Edge’s Gold Coast mortgage brokers. We’ll help you access the First Home Owner Grant and avoid costly mistakes. Call
07 4721 4772 or visit
lmedge.com.au.
FAQs
What credit score do I need?
A credit score above 700 is considered strong and usually puts you in a good position with most lenders. Even if it is lower, other factors like income, deposit, and overall financial situation can still help you qualify.
What is the First Home Guarantee scheme?
The First Home Guarantee scheme is an Australian Government program delivered by Housing Australia. It lets eligible First Home Buyers purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance.
What is Boost to Buy?
Boost to Buy is a Queensland pilot program that helps first home buyers by contributing to their deposit. It works as an equity contribution, reducing upfront costs and making home ownership more achievable.
What is a Home Buyer Declaration?
A Home Buyer Declaration is a form confirming you are applying as a genuine First Home Buyer. It is required when seeking grants, concessions, or duty exemptions through state revenue offices.
Can I get a refund of duty?
Refunds of duty apply in certain situations, such as family violence exemptions or natural disaster relief. Always check with your state revenue office to confirm eligibility for a refund.
What are off-the-plan concessions?
These concessions reduce the duty payable when buying an off-the-plan property before construction is complete. They aim to support new housing development and make entry costs lower for First Home Buyers.
What is the First Home Buyers Assistance scheme?
This scheme is run by the NSW Government through Revenue NSW. It provides duty concessions or full duty exemptions for eligible First Home Buyers up to certain property thresholds.
Who qualifies for shared equity arrangement?
Shared equity arrangements are offered under government-backed programs like the Victorian Homebuyer Fund. They allow buyers to enter the market with a smaller deposit while the government takes an ownership share.
Wrap-Up: Ready to Talk to a Broker Like a Pro?
That is a lot to take in, but you are ready. For first home buyers, understanding credit scores, budgeting, paperwork, the role of brokers, and the First Home Owner Grant in Queensland makes the process much easier.
A mortgage broker can make the difference between confusion and clarity for first home buyers. At
LM Edge, our Gold Coast mortgage brokers specialise in helping first-time buyers secure grants, navigate application forms, and deal with transfer duty or stamp duty.
Call us today on
07 4721 4772, or visit our
Gold Coast mortgage brokers page. Whether it is a new build, an off-the-plan property, or vacant land with a comprehensive building contract, we will guide you through the loan application process, property settlement, and beyond.
