The best mortgage strategies for first-time homebuyers in Australia
- Jaime Bedoya
- May 21
- 4 min read
Aspire2Wealth's Jaime Bedoya explains how buying your first home is a major milestone, but it can also be one of the most complex financial decisions you'll make.
For Perth buyers in particular, the rising cost of living and fluctuating property prices mean that the right mortgage strategy can make a significant difference.
At Aspire2Wealth, we specialise in helping first-time buyers in Australia understand their options and make smart, confident moves toward homeownership. Here are the most effective mortgage strategies to consider when buying your first home in Australia.
Get your finances lender-ready
Before you begin your home search, it’s critical to understand how lenders assess borrowing power. Your income, expenses, credit score, existing debts, and dependents all factor into how much you can borrow.
Tips to improve your borrowing capacity:
Reduce or eliminate credit card debts and personal loans
Avoid new credit applications before applying for a home loan
Maintain consistent savings habits for at least 3–6 months
Consider consolidating any outstanding debts for better serviceability
With lenders tightening criteria due to higher interest rates, having clean, transparent financials is more important than ever.
Understand the hidden costs of buying a home
Many first-time buyers focus solely on saving a deposit, but the full cost of purchasing a home in Australia includes several hidden expenses. If unprepared, these can create financial stress down the track.
Common hidden costs with mortgage strategy in Australia:
Stamp duty: A government tax that varies based on property value and location. Check WA rates here.
Lenders Mortgage Insurance (LMI): Charged when your deposit is under 20%
Building and pest inspections
Legal and conveyancing fees
Moving costs, council rates, and home insurance
These extras can add $20,000–$30,000 to your upfront costs. Setting aside a financial buffer is a smart move.
Secure pre-approval before you search
Getting pre-approved gives you a clear understanding of your borrowing limit and strengthens your position when making offers. It also helps you shop with confidence and speed in Perth’s competitive housing market.
Pre-approval isn’t a guarantee, but it’s a valuable head start. Be aware that your final approval will still depend on a property valuation and updated financial checks.
Explore government support schemes
As a first-time buyer in Australia, you may be eligible for government assistance designed to make homeownership more accessible.
Key support options:
First Home Guarantee: Buy with as little as 5% deposit without paying LMI
Help to Buy Scheme (rolling out in 2025): Government co-ownership that reduces your loan size
WA First Home Owner Grant (FHOG): $10,000 for new home builds in Western Australia
Understanding these schemes and how to qualify can fast-track your property journey.
5. Consider strategic buying approaches
Not all paths to homeownership are linear. Especially in Perth’s diverse property market, some strategies may be more effective than buying a home to live in right away.
Alternatives to traditional buying:
Rent vesting: Buying in a growth suburb while renting where you want to live
Buying with a partner or family member: Pooling resources to enter the market
Choosing suburbs with strong growth potential rather than just affordability
Working with a mortgage broker can help tailor your strategy to your personal goals.
6. Leverage broker expertise
Mortgage brokers have access to loan products and lender deals that aren’t available directly to the public. They also understand lender nuances—like which ones are more flexible with self-employed applicants or professionals like nurses and teachers.
Brokers can:
Compare interest rates and lender features
Identify exemptions (e.g., LMI waivers for essential workers)
Help you navigate complex applications or refinancing scenarios
At Aspire2Wealth, we help Australian buyers access exclusive offers and avoid costly missteps.
7. Plan for flexibility and long-term success
With market conditions evolving and interest rates fluctuating, it’s important to choose a mortgage that suits your future, not just your present.
What to look for:
Flexible features like offset accounts or extra repayments
The ability to refinance without heavy penalties
A loan structure that supports your long-term goals—whether that’s upsizing, investing, or staying put
As Aspire2Wealth adviser Jaime puts it: “The smartest borrowers in 2025 will stress-test their plans and prepare for change.”
Final thoughts
Buying your first home in Australia can feel overwhelming, but with the right strategy, support, and preparation, it’s absolutely achievable. By understanding your finances, knowing your entitlements, and getting expert guidance, you’ll be positioned to make informed, confident decisions.
If you’re ready to get started or want to review your options, book a consultation with Aspire2Wealth today.
References
Aspire2 Wealth Advisers Pty Ltd ABN 42 125 897 903 is an authorised representative and credit representative of Charter Financial Planning Limited ABN 35 002 976 294, AFSL and Australian Credit Licence No. 234665.
This website contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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