Simple hacks to prepare your first home checklist

Getting ready to buy your first home means pulling together proof of income, tracking your spending, understanding what you can borrow, and knowing which schemes apply to you.

What You Need Before You Apply for Pre-Approval

Before you apply for pre-approval, lenders want to see proof of genuine savings, recent payslips, and a clear picture of your spending habits over at least three months. In our experience working with buyers around Wentworthville, one of the most common delays happens when someone assumes their savings account tells the full story but hasn't accounted for regular Buy Now Pay Later repayments or a car loan that's still active. Lenders assess your entire financial position, not just the balance in your offset account.

Consider a buyer who works full-time in healthcare and has saved diligently for two years. They had $40,000 in savings and applied for pre-approval expecting to borrow around $600,000. During the assessment, the lender identified an active Afterpay account with a $2,000 limit and a personal loan with six months remaining. Even though the balances were small, the ongoing commitments reduced their borrowing capacity by around $35,000. Once the personal loan was paid out and the Afterpay account closed, the application was resubmitted and approved within a week. The lesson is to close any credit accounts you're not using and ensure all your commitments are reflected accurately before you lodge your application.

You'll also need to show where your deposit came from. If part of your deposit is a gift from a parent or family member, most lenders will accept it as long as you can provide a signed statutory declaration confirming the funds are a genuine gift and don't need to be repaid. Lenders will also ask for bank statements from the person who gave you the money to verify the source.

Understanding the Australian Government 5% Deposit Scheme

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit, with Housing Australia guaranteeing the difference between the deposit and 20% of the property value, and no Lenders Mortgage Insurance is payable. In New South Wales, the property price cap is $1,500,000 for capital city and regional centres, and $800,000 for other areas.

Applications are made through a participating lender, not directly through Housing Australia. Each lender on the panel has their own credit policy, and not all lenders offer the same loan features. Some participating lenders allow offset accounts, others do not. Some offer fixed rate options, others only variable. It's worth comparing what's available through different lenders on the panel rather than assuming all options are identical.

Wentworthville sits within the Greater Parramatta region, which continues to see strong buyer interest due to its proximity to Parramatta CBD, established public transport links via Wentworthville Station on the T1 Western Line, and a mix of older fibro homes and newer townhouse developments. Buyers in the area are often looking at units and townhouses rather than detached homes, and understanding the applicable price caps under the 5% Deposit Scheme becomes particularly relevant when properties in the suburb can range widely depending on dwelling type and condition.

First Home Buyer Stamp Duty Concessions in New South Wales

For contracts entered into on or after 1 July 2023, New South Wales offers a full transfer duty exemption on new and existing homes valued up to $800,000, and a sliding concession on properties between $800,001 and $1,000,000. Buyers must move into the home within 12 months of settlement and live in the property as their principal place of residence for at least 12 continuous months.

If you're purchasing an older unit in Wentworthville at the suburb's current median and the property is valued under $800,000, you'll pay no stamp duty at all. If the property is valued between $800,001 and $1,000,000, you'll receive a partial concession. Above $1,000,000, standard duty rates apply. The concession applies to both new and established homes, which means it's available regardless of whether you're buying an apartment, a townhouse, or a house.

The 12-month residency requirement is strict. If you buy the property as your first home, claim the concession, and then decide to rent it out before the 12 months are up, you'll need to repay the concession amount. Revenue NSW monitors compliance and will issue an assessment if the occupancy requirement isn't met.

How Pre-Approval Helps You Move Quickly

Pre-approval gives you a clear borrowing limit and shows sellers you're a serious buyer with finance already assessed. It's not a guarantee that your loan will settle, but it does mean a lender has reviewed your income, expenses, savings, and credit file and is willing to lend you a specific amount subject to property valuation and final checks.

We regularly see buyers in Wentworthville who start attending open homes before they've spoken to anyone about finance. They find a property they want to make an offer on, then realise they need to organize pre-approval in a matter of days. That rush often means they don't have time to compare lenders properly or gather all their documents without errors. Getting pre-approval sorted before you start looking gives you confidence in your budget and removes one major variable when you're ready to make an offer.

Most pre-approvals are valid for three to six months depending on the lender. If your pre-approval is about to expire and you haven't found a property yet, you can usually apply for an extension or reapply with updated information.

Fixed Rate, Variable Rate, or Split Loan Structure

Once your loan is approved, you'll need to decide whether to lock in a fixed rate, stay on a variable rate, or split your loan between the two. A fixed rate gives you certainty over your repayments for a set period, typically between one and five years. A variable rate can move up or down depending on market conditions and lender pricing decisions, but it usually comes with more flexibility, including the option to make extra repayments without penalty and access to an offset account or redraw facility.

A split loan structure allows you to fix part of your loan and keep the rest variable. For example, you might fix $300,000 at a rate that won't change for three years and keep $200,000 on a variable rate with an offset account attached. The fixed portion gives you some repayment stability, while the variable portion gives you flexibility to make extra repayments and reduce interest over time.

Your choice should reflect how long you plan to stay in the property, whether you expect your income to increase, and how much flexibility you want to pay down your loan sooner. There's no universal right answer, but understanding the trade-offs before you make the decision means you won't be locked into a structure that doesn't suit your circumstances.

What Happens Between Approval and Settlement

Once your loan is formally approved and contracts are exchanged, the lender will order a property valuation to confirm the property is worth at least what you're paying for it. If the valuation comes in lower than the purchase price, the lender will base the loan amount on the lower figure, which may mean you need to increase your deposit to make up the difference.

Your solicitor or conveyancer will carry out searches on the property title, review the contract, and arrange settlement. You'll need to organise building and contents insurance before settlement, and your lender will require proof of insurance before they release the funds. In New South Wales, settlement usually occurs around six weeks after exchange, though this can vary depending on what's negotiated in the contract.

During this period, avoid making any major financial changes. Don't apply for new credit, change jobs, or take on additional debt. Lenders often conduct a final credit check just before settlement, and any new commitments or changes to your employment can delay or jeopardise your loan.

Using the First Home Super Saver Scheme to Boost Your Deposit

The First Home Super Saver Scheme allows first home buyers to make voluntary concessional and non-concessional contributions into their superannuation fund and apply to release eligible amounts toward a home deposit, with up to $15,000 of personal contributions from any one financial year able to be released, and a total cap of $50,000. Concessional contributions are taxed at 15% rather than at marginal income tax rates.

You'll need to obtain a determination from the ATO before you sign a purchase contract, and the ATO will issue a release authority once your determination is approved. The released amount is paid to you, not directly to your lender, and you'll need to include it as part of your deposit when your loan settles. If you've been salary sacrificing into super for a few years with the intention of buying a home, the scheme can add several thousand dollars to your available deposit without requiring you to save that amount again from your after-tax income.

Not every superfund allows voluntary contributions or processes release authorities quickly, so check with your fund well before you plan to apply. Some buyers assume they can access the funds immediately and are surprised to find the process takes several weeks.

Call one of our team or book an appointment at a time that works for you. We'll walk through your situation, confirm which schemes and concessions apply, and help you put together a home loan application that's complete and ready to go. If you're also thinking about how your loan structure will work once you've bought, we can talk through offset accounts, redraw options, and refinancing down the track, and if you're buying in nearby suburbs, we work with buyers across Parramatta, Seven Hills, and surrounding areas every week.

Frequently Asked Questions