By James Gregors

Buying your first home is exciting, but there are always a few hurdles to overcome.

As a first home buyer mortgage broker with The Property Education Company, I have helped hundreds of first home buyers to get their loan applications over the line, and every application has its own quirks, hurdles and “near-miss” moments. Having a clear strategy is helpful, but often it’s sheer determination and a broker who’s willing to go to bat for clients that makes the difference.

This article outlines some of my recent wins as a first home buyer loan broker, to give you an idea of which roadblocks crop up and what’s possible in the world of first-time home loans.

First  Home Buyer Real Story 1: Role Change Throws a Spanner in the Works

One of the most common frustrations for first-home buyers is how banks interpret changes in employment. Even the simplest change, like moving from casual to full-time with the same employer can derail an application between the pre-approval and finalisation stages.

I recently worked with a young buyer who had been employed by a construction business. The company operated under two ABNs: one for casuals, one for permanent employees. When the client transitioned to the permanent arm, the lender decided it counted as starting a “new job” and demanded six months of tenure before they would formally approve the application.

Despite receiving a personal call explaining that it was the same employer, the same work, and the same income, the lender wouldn’t budge. Instead of giving up, I picked up the phone and made another call, this time to a major bank, and spoke to the relationship manager I have known for some time.

This lender approved the loan, which meant the client did not miss out on their purchasing opportunity.

First home buyer mortgage broker tip:

Be careful about changing jobs!

Employment “technicalities” can block the final approval of a loan. A first home loan broker who understands policy and has strong lender relationships can take action to help get your approval over the line, but if you can stay put at work while you’re in the process of buying, things will be easier. 

First  Home Buyer Real Story 2: The Regional Postcode Problem

Location matters, and not always for the reason you think. Many lenders categorise postcodes from “Category 1” (major metro) to “Category 4” (high-risk regional), and restrict borrowing accordingly. ‘High risk’ is because it can be difficult to sell a regional property. This is frustrating for first-time buyers who can see opportunities in regional areas but can’t borrow because of the remote location.

Here’s another story: A buyer’s dream home fell into a borderline regional postcode. At first, I believed it would be ok, but lenders assess distance “by the road map”, not “as the crow flies.” The client’s property technically sat just outside the cut-off zone, and this put the deal at risk.

Rather than accept the rejection, I presented supporting evidence and making a compelling argument to the assessor about the nature of the property, its location and the buyer. Even though the deal fell outside standard policy, the lender agreed to take it.

First home buyer mortgage broker tip:

Check your postcodes

When a postcode is borderline, persistence and precise reasoning can turn an exception into an approval, especially for first-home buyers with strong overall profiles. However, if your heart is set on a regional location, you may need to save a higher deposit to avoid headaches. It helps to do your research first so you won’t be disappointed.

 Need a first home buyer mortgage broker who can handle tricky scenarios?

We’ll map your borrowing strategy and match you with the most suitable lender. Book a first home buyer strategy call here.

First  Home Buyer Real Story 3:

A Parent Gift is Helpful, But Not Always Straightforward

Gifts from parents are increasingly common among first-home buyers, but putting the money towards a purchase does come with rules, including the need for written confirmation from the parents that the gift funds have been handed over.

Some lenders require their own gift letter template; others accept a broker-created version. Crucially, depending on the loan-to-value ratio, it’s likely you will still need to show evidence of genuine savings.

I’m in the process of helping a young buyer who is receiving financial help from their parents. The challenge isn’t the gift itself but ensuring:

• The lender approves the specific form of the gift
• The buyer also meets savings behaviour requirements of the lender
• The timing aligns with the parents’ own financial arrangements

With the right lender selection, this type of scenario becomes manageable. The problem is that many first-time buyers assume a gift solves everything. In reality, it still requires strategy and documentation.

First home buyer mortgage broker tip:

Gifts come with strings attached

A gift from the ‘Bank of Mum and Dad’ helps, and reports show 17% of young buyers use this to get their start in the property market, but the gift only works if it fits within lender policy. First-home buyers still need to demonstrate financial responsibility and follow strict verification rules.

Real Story 4: “I Have a Big Deposit… But I Don’t Want to Use It.” (Why Lenders Don’t Allow That)

Gifts from parents are increasingly common among first-home buyers, but putting the money towards a purchase does come with rules, including the need for written confirmation from the parents that the gift funds have been handed over.

Some lenders require their own gift letter template; others accept a broker-created version. Crucially, depending on the loan-to-value ratio, it’s likely you will still need to show evidence of genuine savings.

I’m in the process of helping a young buyer who is receiving financial help from their parents. The challenge isn’t the gift itself but ensuring:

• The lender approves the specific form of the gift
• The buyer also meets savings behaviour requirements of the lender
• The timing aligns with the parents’ own financial arrangements

With the right lender selection, this type of scenario becomes manageable. The problem is that many first-time buyers assume a gift solves everything. In reality, it still requires strategy and documentation.

Mortgage broker tip for home buyers:

Speak to a specialist!

The 5% deposit/Home Guarantee Scheme is opening new doors for first time buyers, but it’s not designed to help you conserve cash. Book a strategy session with a first home buyer mortgage broker before applying for a loan to prevent surprises.

First Home Buyer Real Story 5: When Smaller Lenders Outperform the Big Four

Most Australian first-home buyers default to thinking Commonwealth, NAB or Westpac are the “safe” or “standard” choices. The truth is suitable outcomes can also come from specialist lenders like Teachers Mutual, UniBank, AusWide, MyState and other tier-two or tier-three institutions.

These lenders often:

• Offer more competitive interest rates
• Provide more generous servicing
• Have appetite specifically for first-home buyers
• Participate in the First Home Buyer Scheme when majors decline

First home buyer mortgage broker tip:

Get help to shop around

The lender that suits your circumstances isn’t always the biggest one, and the big four aren’t your only options. However, you still need to compare carefully, and be aware of ‘too good to be true’ interest deals. 

Think you’re ready to buy? Take the first home buyer quiz.

Why Choose The Property Education Company

We’re dedicated to supporting first home buyers, providing:

• Up to date guidance and a heads up when policy changes make borrowing easier
• Clear, no jargon explanations so you understand what’s going on
• Constant support from your first application to settlement day and beyond.

FAQs for First Home Buyers

Do I need genuine savings to buy my first home?

It depends on your loan-to-value ratio. If you’re borrowing above 80% (without using the First Home Buyer Scheme), most lenders require at least three months of genuine savings history. However, if your deposit comes from a parental gift and your loan is structured under 80% or via an approved scheme, genuine savings requirements may be reduced. Talk to a mortgage broker for first home buyers for personalised information.

Can a parental gift be used as a first home deposit?

Many first-home buyers rely on a parental gift. Some lenders require their own gift-letter template, while others accept a standard letter drafted by your broker. The key is proving the funds are non-repayable and understanding how this interacts with your overall borrowing strategy.

Are smaller lenders safe for first-home buyers?

Absolutely. In fact, lenders like Teachers Mutual, UniBank, AusWide, and MyState often offer sharper pricing or more flexible policy for first-home buyers than the big four banks. Your first home buyer mortgage broker will aim to match your situation with the lender that aligns with your goals.

What happens if I change jobs during my home loan application?

A change of employer, job title, or even business ABN can cause delays, depending on the lender’s policy. Some banks require six months in your “new role,” even if you’ve essentially stayed with the same employer. In many cases, a broker can negotiate exceptions or find a lender with more flexible criteria.

Can I buy a home in a regional area?

Yes, but be aware of postcode restrictions. Lenders assess regional properties using category systems (Cat 1–4), and some postcodes require higher deposits or more stringent conditions. A broker can argue for exceptions, especially if the property is technically within an acceptable area.

How long does first home loan approval usually take?

Timelines vary by lender and the time of year. First home loan approval can take anywhere from a few days to several weeks. During peak periods like the Christmas cut-off, lenders may temporarily stop processing new applications after certain dates.

Should I use a first home buyer mortgage broker or go directly to a bank?

Bank staff can only offer their own products. A first home loan broker compares many lenders, knows policy loopholes and can negotiate exceptions.

How much does a mortgage broker cost for first home buyers?

Most first home buyers don’t pay a direct fee as brokers are usually paid by the lender. If a fee applies for complex work, we will let you know upfront.

Who Can Help With a First Home Purchase?

If you’re searching for a first home buyer mortgage broker, these stories show exactly how we work.

We’re MFAA-accredited brokers who specialise in first home loans. That means we compare lenders, interpret policy and negotiate exceptions so you don’t miss your chance to buy.

Got a goal to buy your first home in Australia this year? Worried that your situation is too complex? Give us a try… call 0468 026 200 or connect with The Property Education Company here.

About the author:

As an MFAA-certified finance broker, James Gregors has been helping people just like you to build their property portfolio for many years. He is especially dedicated to helping first time buyers experience the excitement of buying their first home.

James loves learning about property opportunities then sharing what he has learnt with his clients. He has a natural flair for figures, which makes him a whiz at working out the most advantageous borrowing opportunities.

Disclaimer: This advice is general in nature. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Licensing Statement: Credit Representative 365124) is authorised under Australian Credit Licence 389328.