Beating the Odds: How First Home Buyers Can Compete and Succeed

Yes, it’s tough out there. Yes, you’re competing against people with deeper pockets and more experience. But don’t let that discourage you. First home buyers have unique advantages—government concessions, flexibility, and the drive to make sacrifices others won’t.

Introduction: Why First Home Buyers Need a Plan Now

If you’re a first home buyer (FHB) in today’s market, you don’t need reminding how tough it is. Prices remain stubbornly high, interest rates, though coming down, are stretching budgets, and competition from seasoned investors and cashed-up downsizers is fierce. For many, it can feel like the odds are stacked against you.

But here’s the reality: people are still buying their first home every day. The difference between those who succeed and those who don’t often comes down to preparation, strategy, and the willingness to make smart sacrifices. The good news? You have government support, concessions, and grants on your side—if you know how to use them effectively. And with the right guidance, particularly from an experienced mortgage broker, you can position yourself as a serious buyer that sellers (and lenders) can’t ignore.

This guide walks you through the steps every FHB should take to maximise their chances of securing finance and landing their first property before prices rise again

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Step 1: Get Clear on Your “Why” and Your Budget

Buying your first home is not just a financial milestone—it’s a lifestyle decision. The first step is clarity:

• Why do you want to buy? Is it stability, building wealth, or getting out of the rental cycle?

• What’s realistic? Take a hard look at your income, expenses, and what you can comfortably afford without overstretching.

  
  

Lenders will assess your borrowing power based on your income, liabilities (credit cards, personal loans, car finance), and spending habits. In the current climate, tightening your budget is essential. Every dollar you can save increases your capacity to borrow and signals to both lenders and sellers that you’re serious.

Step 2: Build Genuine Savings and Reduce Liabilities

One of the biggest hurdles for FHBs is the deposit. While government schemes may allow you to buy with as little as 5% down, showing a history of genuine savings strengthens your application.

• Cut back on non-essentials. Every coffee and streaming subscription adds up.

• Pay down debts. Clear credit cards or personal loans where possible—they reduce your borrowing power.

• Automate savings. Set up a dedicated account and treat it like a non-negotiable bill.

  
  

This isn’t about deprivation for the sake of it—it’s about proving to a lender that you can manage the discipline of a mortgage.

Step 3: Take Advantage of Government Incentives

One of the few advantages FHBs have over investors and downsizers is access to government concessions. These can save you tens of thousands of dollars if used strategically. Key options include:

• First Home Owner Grant (FHOG): A lump sum available for eligible new builds or newly built properties.

• Stamp Duty Concessions: Many states waive or reduce stamp duty for FHBs up to certain thresholds. This can be the difference between being able to buy now or having to wait.

• First Home Guarantee (FHBG): Allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).

• First Home Super Saver Scheme (FHSS): Lets you withdraw voluntary super contributions to put toward your deposit.

  
  

Working within these schemes not only lowers your entry costs but also makes you more competitive. A seller looking at two offers—one from a buyer who has structured their finance properly and one who hasn’t—will lean toward the buyer with fewer risks and clearer funding.

Step 4: Secure Pre-Approval Before You Start House Hunting

This is where many FHBs stumble. They find a property they love, only to miss out because their finance isn’t in order. In a market this competitive, you can’t afford that mistake.

A loan pre-approval (also called conditional approval) shows sellers and agents that you have already passed the bank’s initial checks and can borrow up to a certain limit. It doesn’t guarantee final approval, but it puts you well ahead of casual buyers.

This is also the stage where working with a mortgage broker is invaluable. A broker:

• Knows which lenders are offering the best deals for FHBs.

• Can help you navigate complex government schemes.

• Presents your application in the best possible light, increasing your chances of approval.

• Saves you from making costly mistakes like applying to multiple banks and damaging your credit score.

  
  

Step 5: Understand What Sellers Are Looking For

It’s not always about the highest offer. Sellers want certainty. They don’t want a deal falling through at the last minute because finance collapses. This is where you, as an FHB, can actually compete with investors:

• Pre-approval = confidence. Agents will take you seriously.

• Shorter settlement if possible. If you can align with the seller’s timing, you’re more attractive.

• Minimise conditions. While you should never cut corners on due diligence, avoid unnecessary clauses that complicate the deal.

  
  

Being “ready to go” is one of your strongest weapons in this market.

Step 6: Choose the Right Property for Your First Step

Your first home doesn’t need to be your forever home. Many FHBs get stuck waiting for the perfect property, only to watch prices climb further out of reach. Instead, think strategically:

• Look for growth corridors. Areas with upcoming infrastructure, schools, or transport projects often see faster capital growth.

• Consider an apartment or townhouse. Smaller dwellings can be a stepping stone to build equity.

• Be flexible on location. This is crucial. You may not get your dream suburb, but this doesn't have to be your forever home. An affordable area now could set you up for a move later.

  
  

Remember, the goal is to get into the market. Once you’re in, the equity you build works in your favour.

Step 7: Assemble Your Support Team

The right support can make or break your buying journey. At minimum, you’ll need:

• A mortgage broker (your strategist and negotiator with the banks).

• A solicitor or conveyancer (to handle the legal side of contracts and settlement).

• A building and pest inspector (to make sure you’re not buying a money pit).

  
  

Trying to DIY these steps can save a little money upfront but cost you far more in the long run. Experienced professionals are worth every dollar.

Step 8: Be Prepared to Make Sacrifices

This is the part many FHBs underestimate. Competing in today’s market means sacrifices:

• You might need to rent out a room to help cover repayments.

• You may have to choose a smaller property than you’d hoped.

• You could end up in a less “prestigious” suburb.

  
  

But remember—the sacrifice is temporary. Once you’re in the market, you can upgrade later. What you don’t want is to delay so long that prices move beyond your reach altogether

Step 9: Stay Persistent and Keep Perspective

It’s normal to miss out on a property or two before you succeed. The key is not to get discouraged. Each attempt teaches you something: how auctions work, how quickly you need to move, how to fine-tune your offer.

Buyers who persist—while sticking to their budget and plan—eventually succeed.

Step 10: Secure Your Future Beyond the First Home

Once you’ve bought, the journey isn’t over. Managing your mortgage well is crucial:

• Set up an offset account to reduce interest.

• Keep saving habits alive so you’re ready for unexpected expenses.

• Review your loan regularly with your broker to ensure you’re still on the best deal.

  
  

Smart management from day one can save you tens of thousands over the life of your loan and position you for your next step on the property ladder.

Final Thoughts: The First Home Buyer Advantage

Yes, it’s tough out there. Yes, you’re competing against people with deeper pockets and more experience. But don’t let that discourage you. First home buyers have unique advantages—government concessions, flexibility, and the drive to make sacrifices others won’t.

The critical factor is preparation. Get your finances in shape, use every government support available, work with an experienced mortgage broker, and present yourself as the serious buyer sellers want. Do that, and you’ll give yourself the best chance of success—not just in getting a loan, but in securing the keys to your first property.