Start with your deposit figure, not your property preference
Your deposit amount determines where you can search, not the other way around. If you have a 5% deposit saved, you can access the Australian Government 5% Deposit Scheme without paying Lenders Mortgage Insurance. If you have 10% or more, your lender options widen and you may be able to negotiate stronger terms. Knowing this figure before you open a property app keeps your search grounded in what you can actually secure finance for.
Consider a buyer who saved $75,000 and assumed that would cover a 10% deposit in Randwick. After confirming their borrowing capacity and factoring in stamp duty exemptions and settlement costs, they realised a 5% deposit gave them access to a wider range of properties under the scheme's $1,500,000 cap. They redirected their search to units close to the Prince of Wales Hospital precinct and secured a two-bedroom apartment without needing to stretch their savings further.
Does location flexibility change your finance options?
Randwick sits within the NSW capital city price cap zone, which means properties up to $1,500,000 are eligible under the 5% Deposit Scheme. Properties across Randwick, Coogee, Clovelly and Maroubra all fall under this cap, giving you room to compare without losing access to the scheme. The stamp duty exemption in NSW applies in full on properties up to $800,000 and phases out completely at $1,000,000, so staying under that threshold can save you several thousand dollars at settlement.
If you're open to a unit rather than a house, you'll find more options under $900,000 within walking distance of Randwick Junction or The Spot. Proximity to the University of NSW and the hospital precinct keeps rental demand stable, which matters if your circumstances change and you need to lease the property later. Buyers who insist on a house in the Coogee beachside streets will need a larger deposit or a willingness to move further from the coast.
Pre-approval before property search
Applying for pre-approval before you attend inspections tells you exactly what price range lenders will support. Pre-approval is not a guarantee, but it confirms your income, deposit and credit position are acceptable to a specific lender. This stops you from making an offer on a property you can't finance or wasting time on listings that sit outside your range.
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Pre-approval also locks in your application details for a set period, usually three to six months. If you find a property within that window, your formal approval process moves faster because the lender has already assessed your financial position. Buyers without pre-approval often lose out in competitive situations because they can't move quickly when a suitable property becomes available.
How stamp duty concessions change your settlement costs
In NSW, first home buyers pay no transfer duty on properties valued up to $800,000 and receive a sliding concession on properties between $800,001 and $1,000,000. Above $1,000,000, standard duty applies. For a property purchased at $850,000, the concession reduces duty from approximately $33,000 to around $11,000. At $950,000, the concession reduces duty from approximately $40,000 to around $21,000. These are not small amounts, and they directly affect how much cash you need at settlement.
If your target property sits just above $800,000, it's worth understanding the trade-off between purchase price and upfront costs. A property at $795,000 with no duty payable may be a stronger financial outcome than a property at $850,000 with $11,000 in duty, even if the second property appears slightly larger or better located. Run the numbers on total outlay, not just the purchase price.
Unit versus house in Randwick
Units dominate the Randwick market, particularly around Avoca Street, Belmore Road and Alison Road. You'll find a mixture of older walk-up blocks and newer developments, with prices varying depending on age, size and proximity to transport. Houses in Randwick are less common and typically priced above $1,500,000, which puts them outside the reach of most first home buyers using the 5% Deposit Scheme.
If you're comparing a two-bedroom unit in Randwick with a house in a neighbouring suburb further west, factor in strata levies, parking availability and proximity to work or study. A unit closer to the light rail or bus routes may reduce your transport costs and commute time, even if the property itself feels smaller. Buyers focused purely on property type often overlook the ongoing cost and lifestyle differences between units and houses.
When to involve a mortgage broker
A mortgage broker in Randwick can compare lenders that participate in the 5% Deposit Scheme and identify which ones offer the loan features you need, such as offset accounts, redraw facilities or the ability to make extra repayments without penalty. Not all participating lenders offer the same loan structures, and some restrict access to offset accounts or charge higher rates for low-deposit loans.
Brokers also help when your income is irregular, you're self-employed, or you're using gifted funds as part of your deposit. Lenders assess these situations differently, and knowing which lenders are more flexible can mean the difference between approval and decline. If you're balancing multiple variables, a broker reduces the time spent researching individual lender policies and increases the chance your application is submitted to the right lender from the start.
What to check before making an offer
Before you make an offer, confirm the property value sits within the price cap for the 5% Deposit Scheme and that your target lender will accept the property type. Some lenders exclude certain unit types, high-rise buildings, or properties with specific structural characteristics. Your broker or lender can run a preliminary assessment once you've identified a property, which avoids the situation where you exchange contracts only to find your lender won't proceed.
Also confirm your settlement timeline aligns with your pre-approval expiry and your ability to move. If your pre-approval expires before settlement, you may need to reapply, and if your financial position has changed in the interim, that can create problems. Buyers often focus entirely on securing the property and overlook the timing required to finalise finance and arrange settlement.
Call one of our team or book an appointment at a time that works for you. We'll review your deposit, confirm your borrowing capacity, and help you focus your search on properties you can actually finance.
Frequently Asked Questions
What deposit do I need to buy my first home in Randwick?
You can purchase with a 5% deposit under the Australian Government 5% Deposit Scheme without paying Lenders Mortgage Insurance. Properties in Randwick fall under the NSW capital city price cap of $1,500,000. You'll also need to cover settlement costs including legal fees and adjustments.
Do I pay stamp duty on a property in Randwick as a first home buyer?
NSW first home buyers pay no transfer duty on properties valued up to $800,000. A sliding concession applies on properties between $800,001 and $1,000,000. Above $1,000,000, standard duty rates apply.
Should I get pre-approval before looking at properties?
Yes. Pre-approval confirms your income, deposit and credit position are acceptable to a lender and tells you exactly what price range you can finance. It also speeds up your formal approval process when you find a property.
Can I buy a house in Randwick as a first home buyer?
Houses in Randwick are typically priced above $1,500,000, which sits outside the 5% Deposit Scheme price cap and above the stamp duty concession threshold. Most first home buyers in Randwick purchase units.
When should I speak to a mortgage broker?
Speak to a broker before you start your property search. A broker can confirm your borrowing capacity, compare lenders participating in the 5% Deposit Scheme, and identify which lenders offer the loan features you need.
