3 broker-approved steps to owning your first home in 2026

Buying your first home can feel overwhelming — but it doesn't have to. According to the experts, the real secret to buying successfully isn't luck — it's planning. With the right plan and a little expert help, the process can be smoother (and faster) than you might think.

We sat down with mortgage broker Alya Manji from Aussie, a home-loan expert with 15 years in the game, to cut through the confusion and get three proactive, practical steps that every home buyer should take before they even start looking.

Step 1: Know your true affordability, not just your max limit

Manji is clear that the first step is the most crucial, and it's a personal one.

"It's really handy if you have an understanding of your affordability," she explains. "Sit down, look at your income and look at your fixed expenses. You need to understand how much you can truly commit to in a mortgage repayment."

This isn't about what a lender thinks you can afford; it's about what you feel comfortable spending every month. To ensure a financially safe and empowered choice, Manji advises clients to be realistic about their everyday spending habits.

It's one thing to know your maximum borrowing power and another to know your comfortable borrowing limit, she notes. 

Step 2: Build a financial buffer into your budget

Indeed, knowing your comfortable borrowing limit is the foundation, and the next step is protecting it by building a financial safety net. This is often a part of the budget that first-time buyers underestimate.

"My best tip for building a financial buffer is to be brutal with your expenses," Manji says, explaining that you can start by separating things that are non-negotiable — like a favourite fitness class or weekly dinner with friends — from the things you can temporarily cut back on.

A buffer acts as your rainy-day fund for when rates inevitably change or unexpected costs pop up post-settlement. By being honest about your "must-haves" and then building savings around them, you ensure your buffer is sustainable and realistic.

Step 3: Get pre-approval and feel the power

Once your personal budget is locked down, the next step is seeking expert help to translate that into what you can afford and understanding what you can purchase.

According to Manji, pre-approval is not just a formality — it's a crucial step that helps buyers feel more confident and more in control.

"By working with a broker who gets to understand your circumstances, you work out your affordability and then you apply with your preferred lender," she explains. This process turns a vague dream into a concrete figure, giving you the clarity to step into the property market as a serious buyer.

Myth buster: You don't need a 'really big' deposit

One of the most persistent and outdated pieces of advice Manji wants to clear up is the need for a massive, traditional 20 per cent deposit. 

"Not today," she states emphatically. 

This piece of advice has been fundamentally changed by government support. The expansion of the Federal Government's First Home Buyer Guarantee, which took effect on October 1, 2025 has been a game-changer.

"It is giving more first-home buyers the opportunity to enter into the market today with a 5 per cent deposit and not have to pay Lenders Mortgage Insurance," Manji explains.

Click here to read more about the rewards (and risks) of the 5% deposit scheme.

Critical scheme details you might not know

While the government guarantee is there to help many Aussies get into the property market sooner, a seasoned broker provides the critical insight needed to weigh the pros and cons, specifically analysing the long-term costs and inherent risks that come with taking on a larger initial debt.

Manji calls out these three points about the schemes that many buyers don't realise:

1. Saving limits: The Scheme assists home buyers who have saved a deposit of at least 5 per cent of the property value, and less than 20 per cent. You must use as much of your savings as possible for the deposit, based on your participating lender's policies and your financial circumstances. If you have 20 per cent or more saved after the property purchase costs, you may be asked to contribute more by your lender.

2. Borrowing capacity: While you may have enough for a 5 per cent deposit, Manji makes an important point that you still need to have the borrowing capacity to cover the repayments on the remaining 95 per cent. 

3. Eligibility: If you haven't owned a property for 10 years, you are considered a first-home buyer and eligible for the scheme.

Manji's parting advice

When it comes to making the hard choice between location, size and amenities, Manji has a novel piece of advice: Live there now.

But what does that mean? "Go [to your prospective neighbourhood], have breakfasts there, have lunch there. Go and do your groceries if you can," she explains. "That is where you get to see the community. That's where you get to interact with the locals, and then you can really make a confident decision if that's the community for you."

And her ultimate advice to people thinking of buying their first home today?

Don't wait! The waiting tax is a real thing. Get your foot in the door, move with the market, and let's set up a plan to get you in."

With the right plan in place and the right broker, your first set of keys could be closer than you think.

Ready to take the next step? Chat to an Aussie Broker today.

This article is intended as general information only and does not constitute financial advice. Always seek professional advice specific to your circumstances.

©2025 Lendi Group Distribution Pty Ltd ABN 27 105 265 861, Australian Credit Licence 246786. Lendi Group Pty Ltd ACN 648 681 654, is the ultimate holding company for the Aussie business.Aussie does not provide financial or investment advice. This material does not take account of your objectives, financial circumstances or needs. Aussie recommends that you seek independent financial, legal and taxation advice before making an investment decision.