First home buyer loans, even when it's not straightforward

What is a first home buyer loan with a twist?

Most first home buyer advice is written for someone on a regular salary, with a steady job history and a clean credit file. If that is you, the process can be fairly smooth. But plenty of first buyers do not fit that mould: they run a business, work casually, picked up a default years ago, have a deposit that is partly gifted, or are returning to the market after a separation and have never held property in their own name.

A first home buyer loan with a twist is simply a first purchase where the standard path does not quite fit. Ownright Custom Finance exists for those cases. Trevor Scott and the team have helped people find a way through when the first answer was no.

What help is available to first home buyers?

The headline federal support is the First Home Guarantee, run through Housing Australia. Here is what the government says changed on 1 October 2025:

• Places are uncapped, so eligible buyers are not competing for a limited number of spots.
• Income caps no longer apply.
• Property price caps were raised to track average prices, which opens up a wider range of homes. The caps still vary by location.
• The minimum deposit is 5 per cent, with the government guaranteeing part of the loan so that lenders mortgage insurance is not charged on that guaranteed portion.

Core eligibility still includes being at least 18, being an Australian citizen or permanent resident, intending to live in the property, and not having owned property in Australia in the past ten years. You apply through a participating lender or an authorised broker, because Housing Australia does not take applications directly. The lender still decides whether to lend, and it applies its own policy on income, deposit and credit.

State and territory governments add their own first home owner grants and stamp duty concessions. Those differ widely and change over time, so the relevant state revenue office is the authority.

Where do first buyers get stuck?

The scheme answers the deposit question. It does not change how a lender reads your income. The common sticking points are:

Situation	Why it complicates a first loan	What can help
Self-employed	Lenders often want two years of returns and look at taxable profit	A lender that adds back certain deductions, or alternative documents
Casual or seasonal work	Income varies and tenure with one employer may be short	A lender that averages income across a longer period
Credit blemish	Defaults or arrears can trigger a decline	Explaining the cause, evidence of recovery, a lender with flexible policy
Gifted or family deposit	Source of funds must be shown	Gift statements, clear paper trail
Previous owner, no property in a decade	Eligibility for the scheme needs checking	A careful review of your ownership history
Applying with a friend or relative	Joint borrowing has different consequences	Structuring and advice on shared ownership

Who does this suit?

This page is aimed at first buyers who have already had a lender hesitate, or who suspect they will. Typical people we meet include tradies who have just started on their own, nurses and hospitality workers on casual rosters, people rebuilding after a hard few years, and parents trying to help a young adult onto the ladder.

Not sure whether a scheme applies to you?

Eligibility has several moving parts, so it is worth a quick conversation before you start inspecting homes. Send us your details and we will check where you stand.

What do lenders look at for a first home loan?

• Genuine savings and deposit source. Some lenders want to see a history of saving, and each lender decides what counts as genuine savings.
• Income stability. Time in the job or business, and whether the income is regular.
• Living expenses. Lenders review your spending closely. Reducing unnecessary subscriptions and buy-now-pay-later use before applying can make a difference.
• Debts and credit limits. Every credit card limit counts, even when the balance is zero.
• Credit history. Missed payments, defaults and a lot of recent enquiries all register.
• The property. Price, location and type, and whether it fits the scheme’s price cap.

How does Ownright approach a harder first home loan?

We begin by working out what the lender will worry about and fixing it on paper before the application, not after a decline. That might mean shifting to a lender that uses a different method to read self-employed income, restructuring a deposit, or tidying credit commitments.

We also look at timing. Sometimes the strongest move is to apply now. Sometimes it is to spend a few months building a clearer income history. Either way, you get a straight answer. If your situation looks tight but workable, we say so; if it needs some preparation first, we show you what to do.

Because Ownright works Australia-wide, we are used to matching buyers with different state grant rules and local property markets, from capital-city units to country homes.

An illustrative example

This scenario is illustrative only and does not describe a real client.

A barista who works casual shifts across two cafes has been saving for a deposit with help from her parents. She has a single old phone default that she paid off. The first lender she tried declined on the combination of casual income and the default.

Ownright reviews her payslips from both jobs, shows the lender consistent hours across the past year, includes the paid default with an explanation, and documents her parents’ gift properly. We then approach a lender whose policy suits casual income and use the First Home Guarantee to keep the deposit low. The outcome still depends on the lender’s approval, but the file now tells her story clearly.

Mistakes first buyers make

• Choosing a property before knowing what the lender will accept.
• Applying to several lenders on a whim and accumulating enquiries.
• Taking on a car loan or buy-now-pay-later debt just before applying.
• Assuming a scheme guarantees a loan. It supports the deposit; it does not replace lender approval.
• Forgetting the extras: stamp duty, legal costs, inspections and moving costs.

Documents to have ready

• Photo ID and proof of your citizenship or residency status.
• Two recent payslips and your income statement, or your last two years of tax returns if self-employed.
• Savings account statements covering the past several months.
• Statements for every card and loan.
• A signed gift letter if family is contributing.
• Contract of sale once you have found a property.

Ready to take the first step?

Apply online or ring Ownright Custom Finance on 03 7043 7233. We are in Knoxfield, Victoria, and help first home buyers in every state and territory. If a credit blemish is the concern, our guide on getting a home loan with bad credit is a useful companion read.