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First Home Super Saver Guide
A beginner-friendly hub for first-home buyers.

From building your deposit to making the most of government support and navigating home loans, this guide covers the essentials. Learn how the First Home Super Saver (FHSS) scheme works, decide if it’s right for you, and set clear goals to turn 'someday' into a plan.

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Top 10 ways to save for a home deposit

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How can I benefit from the First Home Super Saver Scheme (FHSS)?

Do you have questions about the First Home Super Saver Scheme (FHSS)? If so, this article is for you.

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How do I get home loan pre-approval?

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How do I apply for a home loan in Australia?

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Glossary

Here are some frequently used terms you might see around!

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Accumulation phase

The default phase of your super account where you’re growing your balance over time with contributions and investment earnings.

After-tax contribution (non-concessional)

Contributions made into super from your take-home (after-tax) pay.

Application fee

A once-off fee some lenders charge when you apply for a home loan. Not all do.

Assessment rate (buffer rate)

A higher interest rate banks use to test if you could still afford your loan if rates rise. Helps them assess your risk.

Australian Taxation Office (ATO)

The government agency that oversees taxes and also runs the First Home Super Saver Scheme (FHSS). They process FHSS release requests.

Bank valuation

The bank’s own estimate of what a property is worth. It might be different from the price you agreed to pay.

Before-tax contribution (concessional)

Super contributions made from pre-tax income (like salary sacrifice or employer SG). These are taxed at 15% in your super fund. You can use these in FHSS.

Borrowing capacity

An estimate of how much a lender might let you borrow, based on your income, spending, and debts.

Break costs

A fee that may apply if you end a fixed-rate home loan early. Check with your lender before locking in.

Broker (mortgage broker)

A professional who compares home loans for you and helps you apply. Most are paid by the lender, not you.

Bring-forward rule

A super rule that lets you make up to three years’ worth of after-tax contributions at once, if eligible. Can be useful for FHSS if you’ve got savings ready.

Comparison rate

A number that adds up the interest rate and most loan fees to show the total cost. Helps you compare apples with apples.

Concessional contribution

Another name for a before-tax contribution. See above.

Contribution caps

The yearly limits on how much you can put into super as concessional and non-concessional contributions. FHSS also has its own separate limits.

Conveyancer or solicitor

A legal expert who helps you with the paperwork when buying a property. They check the contract, do property searches, and manage settlement.

Cooling-off period

A short time after signing a contract (usually private sale) where you can change your mind. Rules vary by state and do not apply to auctions.

Credit report and credit score

A record of your borrowing history and a score lenders use to help assess your loan application. Good habits help boost your score.

Debt recycling

A strategy where home loan debt is gradually replaced with investment debt. Generally not for beginners, please seek financial advice before considering.

Debt-to-income ratio (DTI)

Your total proposed debt divided by your gross income. Banks have upper limits here to manage risk.

Deemed earnings (FHSS)

A fixed rate the ATO uses to estimate your super earnings for FHSS, it’s not based on your actual returns.

Deposit

The money you contribute toward the home’s price. The rest usually comes from your home loan.

Deposit bond

A guarantee that replaces your upfront deposit until settlement. Some sellers accept it, others don’t.

First Home Buyers Guarantee (FHBG)

A federal scheme that lets eligible buyers purchase a home with as little as 5% deposit and no Lenders Mortgage Insurance (LMI).

First Home Owners Grant (FHOG)

A one-off grant from your state or territory government to support first-home buyers. The rules and amounts vary.

First Home Super Saver Scheme (FHSS)

A federal scheme that lets you save a home deposit using voluntary super contributions, then withdraw those savings plus earnings (capped).

Fixed rate

A loan interest rate that stays the same for a set period, giving predictable repayments. May have fewer features.

Genuine savings

Money you’ve saved and held in your account for at least 3 months. Some lenders require this to prove financial discipline.

Guarantor

A family member (usually a parent) who supports your loan using their home equity. Helps avoid LMI but carries risk for them.

Interest-only loan

You only repay interest for a set period, so repayments are lower at the start. The loan balance doesn’t shrink during this time.

Interest rate

The cost of borrowing money, charged as a percentage per year. Affects your loan repayments.

Key facts sheet

A summary sheet lenders provide so you can clearly compare home loan offers, shows rate, fees and total cost.

Lenders Mortgage Insurance (LMI)

A fee that protects the lender (not you) if your deposit is small. It can be avoided with FHBG or a guarantor.

Loan term

The full length of your home loan, usually 25-30 years. A longer term means smaller repayments but more interest paid overall.

Loan-to-Value Ratio (LVR)

The size of your loan compared to the property’s value, shown as a %. A lower LVR often means better loan conditions.

Non-concessional contribution

Voluntary payments you make into super from your take-home (after-tax) pay or savings. These may count toward the FHSS if you choose.

Mortgage offset account

A bank account linked to your loan, the balance reduces your loan interest while still letting you access the money..

Pre-approval / Conditional approval

Early approval from a lender based on your situation. It’s not a full guarantee, but helps you know your borrowing range.

Principal and interest (P&I)

Most home loans have repayments that cover both the interest and a portion of the loan balance (principal).

Rate lock

Lets you lock in a fixed interest rate before settlement. Often used if rates are expected to rise.

Redraw facility

Lets you access extra loan repayments you’ve made, this can be useful as a backup but terms vary between lenders.

Release authority (FHSS)

The ATO’s official instruction to your super fund to release your FHSS savings to you.

Salary sacrifice

An agreement with your employer to send part of your pre-tax pay into super. Often used with FHSS.

Serviceability

How the lender checks that you can afford the loan which is based on your income, expenses, debts and buffers.

Settlement

The day your home officially becomes yours. The lender pays the seller and you get the keys.

Stamp duty

A state tax you usually pay when buying property. Rates and discounts vary based on your state and situation.

Super fund

Where your super is held and invested. When you release your FHSS to be used, your fund sends your savings to the ATO.

Superannuation (super)

Australia’s system for saving for retirement. The FHSS scheme lets you use it to build a home deposit sooner.

Target Market Determination (TMD)

A document that explains who a product is for, how it works, and who it may not suit. Required by law.

Unconditional approval

Final loan approval, all checks are done and you’re ready for settlement.

Valuation shortfall

When a bank’s property valuation is lower than your purchase price. You may need to increase your deposit.

Variable rate

A loan interest rate that can go up or down. Offers more flexibility, but repayments can change over time.