Buying Your First Home in Wollongong? Here’s What First-Time Buyers Need to Know

In New South Wales, the real estate market has undergone significant changes. With prices remaining high in some areas, more buyers are starting to explore regional hubs for better value. That’s where Wollongong comes in.

For people stepping into the housing market for the first time, this coastal city offers a mix of affordability, lifestyle, and growth potential. If you're buying your first home, it’s worth understanding how the process works, whether you're looking in Wollongong or anywhere else in NSW. A little knowledge upfront can save you time, money, and a lot of stress.

This guide will walk you through what first-time buyers in Wollongong need to know, clearly and simply. Let’s dive in.

Buying your first home in Wollongong? Don’t do it alone. SimpleFin’s local experts understand the regional market and help first home buyers choose the right loan and fast-track approval. Call our local Wollongong mortgage brokers now at 0457 531 124. 

Why Wollongong Is a Smart Choice for First Home Buyers

Once a quiet coastal city, Wollongong has grown into one of NSW’s top regional hubs, now home to over 220,000 people. For anyone buying their first home, it offers lifestyle, value, and future growth in one package.

Here’s why it stands out:

More Affordable Than Sydney – With a Better Lifestyle

The median house price in Wollongong is around $950,000, while Sydney’s remains higher at about $1.4 million. Units in Fairy Meadow and Wollongong CBD average $650,000–$680,000, offering a more realistic entry point for first-home buyers.

You’re minutes from the beach, surrounded by coastal walks, national parks, and café culture, without the Sydney price tag.

Strong Rental Demand and Regional Growth

Wollongong's rental vacancy rate is under 1.2%, showing high rental demand, especially from students and healthcare workers. This supports strong rental yields and future property value growth. The population grew by over 8.6% between 2016 and 2021, and is expected to keep rising due to regional migration and local job creation.

Reliable Infrastructure and Sydney Access

Wollongong is connected to Sydney via the South Coast railway line, the Princes Motorway, and enhanced public transport services, making it a top choice for commuters. Direct trains reach Sydney CBD in 90 minutes, and services run frequently.

Major infrastructure projects include upgrades to Wollongong Hospital, expanded university facilities, and local transport improvements, all of which boost long-term livability.

Future Development and Gentrification Hotspots

Suburbs like Dapto, Berkeley, and Warrawong are seeing a rise in house-and-land packages, townhouse developments, and community upgrades. New retail, parks, and improved transport are reshaping these once-overlooked areas.

This presents a golden opportunity for first-home buyers to buy in early before prices catch up with neighbouring suburbs.

(sources: Cotality, Realestate.com.au, SQM Research, ABS, NSW Government Infrastructure Plans, Wollongong City Council)

How Much Deposit Do You Need to Buy a Home in Wollongong?

When buying your first home in Wollongong, one of the biggest hurdles is saving for the deposit. The amount you’ll need depends on the property price, your borrowing capacity, and whether you’re eligible for any government support.

Minimum Deposit Requirements

Most lenders require at least a 5% deposit for first home buyers, but a 20% deposit is ideal if you want to avoid extra fees. Here's a rough idea of what that looks like:

• 5% deposit on a $750,000 home = $37,500
  
  
• 20% deposit on a $750,000 home = $150,000

Keep in mind that if your deposit is less than 20%, you’ll likely need to pay Lenders Mortgage Insurance (LMI). LMI is a one-off fee charged when you borrow over 80% of a property's value. It protects the lender and can cost anywhere from $5,000 to over $30,000, depending on your loan.

What Affects Your Borrowing Power?

Your borrowing capacity is how much a lender is willing to loan you. It’s based on:

• Your income (and your partner’s, if applicable)
  
  
• Existing debts and financial commitments
  
  
• Living expenses
  
  
• Credit history
  
  
• Type of property (e.g., unit, house, off-the-plan)
  
  
• Loan term and interest rate

Using a home loan repayment calculator can help estimate how much you could borrow.

Confused about home loan paperwork or pre-approval? We’ve got your back. Our local Wollongong mortgage brokers at SimpleFin help first home buyers prepare all the right documents, from application forms to lender submissions, for a smooth home loan process. Book a free chat with us today by calling 0457 531 124. 

What First Home Buyer Grants and Schemes Can You Access in NSW?

The NSW Government offers first-home buyers few solid schemes to help them get started. These can reduce upfront costs, boost your deposit, or even eliminate stamp duty in some cases.

Here are the key grants and programs: 

First Home Owner Grant (New Homes) – $10,000

This grant provides eligible first home buyers with $10,000 towards a newly built home, an off-the-plan purchase, or an owner-built property valued at up to $750,000. It’s ideal if you're buying a new property or considering house-and-land packages in growing Wollongong suburbs like Dapto or Calderwood.

First Home Buyers Assistance Scheme – Stamp Duty Exemptions

Under this scheme, you may pay no stamp duty on homes priced up to $800,000, or get a concessional rate on homes up to $1 million. It applies to existing homes, new builds, and vacant land, helping reduce your upfront costs significantly.

First Home Guarantee – Buy with 5% Deposit

This federal scheme from Housing Australia allows eligible buyers to purchase a home with as little as 5% deposit, without paying LMI. It's useful for those with limited savings who still want to buy in competitive areas like Wollongong.

Shared Equity Home Buyer Helper – Buy with Government Support

This NSW Government scheme helps eligible single parents, older singles (50+), and key workers buy a home with as little as a 2% deposit. The government contributes up to 40% of the purchase price for new homes and 30% for existing homes.

Participants don’t pay rent or interest on the government's share, and the support reduces monthly repayments, making it easier to enter the property market.

• No LMI required
• Income and property price caps apply
• The buyer must live in the home

Should You Use a Mortgage Broker in Wollongong?

As a first home buyer, figuring out home loans, interest rates, and lender policies can get confusing—fast. That’s where a mortgage broker can really make a difference, especially in a competitive market like Wollongong.

Here’s how a broker can help you:

1. Compare Loans from Multiple Lenders: Brokers work with a range of banks and lenders, giving you access to more loan options than going directly to one bank.
2. Tailored Advice Based on Your Budget: They assess your borrowing capacity, explain the pros and cons of fixed vs variable rates, and help structure a loan that fits your financial goals.
3. Help With Grants and Paperwork: A good broker can guide you through first home buyer grants, deposit requirements, and even handle much of the loan application process for you.
4. Pre-Approval Support: Getting pre-approval is key in fast-moving markets. Brokers can streamline this process so you’re ready when the right property comes up.

Need help buying your first home in Wollongong? Book a free consultation today with SimpleFin, trusted Wollongong mortgage brokers, by calling 0457 531 124. 

FAQs

What is the best advice for first time home buyers?

Start by doing your due diligence—understand the local property values, speak with trusted real estate agents, and set a clear budget. Don’t rush the contract of sale process; always get legal advice before your offer is accepted.

How much deposit does a first home buyer need in NSW?

Most lenders require a minimum deposit of 5% of the property price, but a 20% deposit is ideal to avoid Lenders Mortgage Insurance. A larger deposit also improves your formal loan approval chances.

Can I buy a house with $10,000 deposit in Australia?

It’s possible if you’re eligible for schemes like the First Home Owners grant or the First Home Guarantee, and buying a lower-priced property. You’ll still need to cover upfront costs like transfer duty (if not exempt), inspections, and legal fees.

Who is eligible for the first home buyers grant in NSW?

To qualify for the First Home Owners grant, you must be buying or building a new home, meet the residence requirements, and not have owned property before. You’ll also need to submit application forms to Revenue NSW.

What are the requirements for first home buyer in NSW?

Buyers must be over 18, Australian citizens or permanent residents, and purchasing their first residential property. You must live in the home for a set period (usually 6 continuous months) to meet residence requirements under most schemes.

How much is stamp duty in NSW for first home buyers?

First home buyers may be eligible for transfer duty exemptions on homes up to $800,000, or discounts on properties up to $1 million through the First Home Buyers Assistance Scheme. Rates vary based on the property price.

What are the home loans available for first home buyers in Wollongong?

Loans include standard variable or fixed-rate home loans, low-deposit loans (5%), and options under government-backed schemes. A trusted mortgage broker, such as SimpleFin, can help you access loans that suit your budget and improve your formal loan approval chances.



Final Thoughts

Buying your first home in Wollongong doesn’t have to feel overwhelming. With the right information, some forward planning, and help from a trusted Wollongong mortgage broker, you can make confident decisions and take advantage of the grants and schemes available in NSW.

Need personalised support? Reach out to SimpleFin or call 0457 531 124 for free, friendly advice from local mortgage specialists who know the Wollongong property market inside out.