First home buyer loans in South Australia, explained before you apply

Deposit, purchase costs and the loan are separate

The deposit is the part of the price you do not borrow. Government charges such as stamp duty or land transfer duty, transfer registration and any mortgage registration are paid because a property is transferring, not because a loan exists. The home loan, if you use one, is the amount a lender is willing to secure against the property after its own assessment.

The Broker Room calculators estimate supported government charges for South Australia. They do not estimate how large a loan a lender would offer. Start with SA first-home buyer costs, then the property plan if you want those charges next to funds you already know.

LVR and LMI for a first purchase

Lenders look at loan-to-value ratio against their valuation. A smaller deposit generally means a higher LVR. When the LVR is high, lenders mortgage insurance may be required. LMI protects the lender. It is not stamp duty relief and it is not the First Home Owner Grant. ASIC’s MoneySmart pages on LMI are the public explanation of that product.

Grants and concessions are not the same instrument

A grant is a payment that may be available if eligibility tests are met. A duty concession or exemption changes how much transfer duty is payable. They have different administrators, different property tests and different paperwork. In South Australia, RevenueSA publishes first-home stamp duty relief and the First Home Owner Grant as separate programs.

The calculators on this site keep a supported grant and a supported duty reduction on different lines so one is not mistaken for the other. Eligibility is never assumed.

What “pre-approval” usually means

Pre-approval, sometimes called conditional approval, is a lender’s indication that, based on the information then provided, it may be prepared to lend up to a figure, subject to conditions. Those conditions commonly include a valuation of the property, verification of income and a clear title. Pre-approval is not a contract to lend, and it can expire or be withdrawn if facts change. Unconditional approval comes later, after the lender is satisfied.

Contracts and settlement, at a high level

In South Australia, a residential contract sets the price, the deposit payable to the agent or stakeholder, and the settlement date. Finance clauses, cooling-off rules and building inspection conditions are legal terms in the contract, not loan features. Settlement is when the balance of the price is paid and the transfer is lodged. Mortgage registration, if a loan is used, is a separate lodgement against the title.

What to prepare before speaking with a lender or broker

Most conversations go faster when you already know: the state, whether a property is found, a realistic price range, savings available for deposit and costs, existing debts, employment type, and whether the home will be owner-occupied. You do not need to send The Broker Room those details to use the calculators. If you later speak with a mortgage broker, they will usually ask for payslips, tax returns or accountant letters, bank statements and a list of liabilities. That information is for credit assessment, which this website does not perform.