First-time buyer essentials in 2026

What's changed, what hasn't, and where to focus as a first-time buyer this year.

13 May 2026 6 min read

Buying your first home in 2026 looks different to even a few years ago, but the fundamentals haven''t changed. You need a clear deposit plan, a clean credit profile and a realistic view of affordability.

Start with affordability, not house prices

It''s tempting to start by browsing properties, but lenders care about what you can comfortably repay. Use a mortgage calculator to estimate your borrowing power before you fall in love with a home you can''t fund.

Build the deposit you actually need

A 5% deposit will get you onto the ladder, but a 10% or 15% deposit unlocks meaningfully better rates and lower monthly payments. If your purchase isn''t urgent, the saving from a bigger deposit usually outpaces small price movements.

Get a Mortgage in Principle early

A Mortgage in Principle (also called an Agreement in Principle) shows estate agents you''re a serious buyer. It also flags any credit issues before you''re emotionally invested in a property.

Don''t forget the extras

Stamp duty (where applicable), legal fees, valuation, surveys and moving costs all add up. Budget at least 2–3% of the purchase price on top of your deposit.

Use an adviser

A whole-of-market mortgage adviser compares hundreds of products you can''t see directly, often unlocking exclusive deals and saving you the legwork.

Frequently asked questions

How much deposit do I need as a first-time buyer?+

Most lenders accept a 5% deposit, but 10% or more typically unlocks better rates and lower monthly payments.

What is a Mortgage in Principle?+

A Mortgage in Principle is a written statement from a lender confirming roughly how much they would lend you, based on a soft credit check. It is not a binding offer but signals to sellers that you are a serious buyer.

Do I really need a mortgage adviser?+

You don't have to use one, but a whole-of-market adviser compares lenders you can't access directly and handles the paperwork — which often saves money and time, especially if your circumstances are not straightforward.

Suggested next steps

Quick self-check based on this guide.

First-time buyer readiness checker

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First-time buyer mortgages

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This article is for general information only and does not constitute regulated financial advice. For guidance tailored to your circumstances, please speak to a Red Kite adviser.

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