The Complete Step-by-Step Guide to Buying Your First Home in Australia
Buying your first home is an exciting milestone, but it can also feel overwhelming. With so many steps, saving for a deposit, getting pre-approved, finding a property, and settling your loan, it’s easy to feel lost.
The good news? You don’t have to navigate it alone! In this step-by-step guide, we’ll walk you through the entire home-buying process in Australia, from saving for a deposit to getting the keys to your first home.
Step 1: Set Your Home-Buying Budget
Before you start looking at properties, it’s important to understand how much you can realistically afford. Start by looking at your deposit, while a larger deposit can lead to lower loan repayments, it’s possible to buy with as little as 5% using the First Home Guarantee. Next, consider your borrowing power. Lenders will assess your income, living expenses, credit history, and existing debts to determine how much they’re willing to lend you. Don’t forget to factor in upfront costs beyond the deposit, such as stamp duty, conveyancing fees, home inspections, and loan application costs. To get an accurate picture of what you can afford, try using a borrowing power calculator or speak to a mortgage broker for personalised guidance.
💡 Tip: Use a borrowing power calculator or speak to a mortgage broker to get a realistic estimate of what you can afford.
Step 2: Save for Your Deposit & Take Advantage of Government Grants
Most first-home buyers aim for a 5-20% deposit. But did you know there are government grants and incentives that can help you buy sooner?
First Home Guarantee (FHG) – Buy with just a 5% deposit and no Lenders Mortgage Insurance (LMI).
Stamp Duty Concessions – Some states offer full or partial exemptions on stamp duty for first-home buyers.
First Home Owner Grant (FHOG) – Get up to $10,000-$30,000 (varies by state) when purchasing a new home.
💡 Tip: Research the first-home buyer incentives available in your state or speak to a mortgage broker to see if you qualify.
Step 3: Get Pre-Approved for a Home Loan
A home loan pre-approval (or conditional approval) is a lender’s estimate of how much you can borrow. Getting pre-approved helps you:
✅ Know your budget before searching for homes.
✅ Show sellers you’re serious, making your offer more competitive.
✅ Avoid surprises—you’ll know upfront if you meet lender criteria.
💡 Tip: Pre-approval usually lasts 3-6 months, so time your property search accordingly.
Step 4: Find the Right Home
Now that you’ve set your budget, you can begin the exciting process of house-hunting. Start by thinking carefully about location—consider how close the property is to your work, schools, public transport, and essential amenities. Next, decide what type of property suits your lifestyle and goals, whether it’s a house, apartment, or townhouse. As you explore your options, be mindful of any hidden costs like strata fees, potential renovation expenses, or necessary repairs that could impact your budget. You can search for properties on real estate websites like Domain and Realestate.com.au, explore auction listings and off-market opportunities, or consider working with a buyer’s agent to help uncover suitable options and negotiate the right deal.
💡 Tip: Attend multiple open homes to compare prices and get a feel for the market.
Step 5: Make an Offer & Secure Your Home Loan
Once you’ve found the perfect home, it’s time to make an offer.
Two Ways to Buy a Property:
Private Sale: You negotiate a price with the seller (may involve back-and-forth offers).
Auction: You bid against other buyers, with the highest bidder securing the property.
What Happens Next?
Loan Application: Submit a formal application to your lender.
Valuation & Final Approval: The lender assesses the property’s value before approving your loan.
Contract Exchange: Pay the deposit (usually 5-10%) to secure the home.
💡 Tip: A finance clause protects you if your loan approval falls through.
Step 6: Organise Legal & Building Inspections
Before settlement, you need to complete due diligence to ensure the property is in good condition. Your solicitor or conveyancer will review the contract of sale, carry out the necessary legal checks, and manage the paperwork to ensure everything is in order. At the same time, it’s important to arrange building and pest inspections to uncover any structural problems or potential risks that may not be immediately visible. These inspections provide peace of mind and can help you make a fully informed decision. If significant issues are found, you may have the opportunity to renegotiate the purchase price or even withdraw your offer altogether.
Step 7: Settlement Day – Get the Keys to Your New Home!
🎉 Congratulations! On settlement day, the property officially transfers to your name.
What Happens on Settlement Day?
Your lender releases funds to the seller.
Your solicitor ensures all legal paperwork is complete.
You receive the keys to your new home!
💡 Tip: Arrange utilities, home insurance, and moving services before settlement day.
Final Thoughts: What’s Next After Buying?
Owning a home is a major achievement, but there are still a few important steps to take after settlement. Start by setting up your mortgage repayments in a way that suits your financial situation—whether that’s weekly, fortnightly, or monthly. It’s also a good idea to review your home loan regularly, as interest rates can change over time, and refinancing could save you money. Don’t forget to plan for the ongoing costs of homeownership, including council rates, home insurance, and property maintenance. If you ever need guidance, we’re here to support you every step of the way, from loan approval to settlement and beyond.
How We Can Help You Buy Your First Home
We offer obligation-free, no cost home loan consultations where we assess your borrowing power and help you find the right loan for your needs. With access to multiple lenders, we compare interest rates and loan features to help you save money. From pre-approval through to settlement, we provide expert guidance every step of the way, making the process as smooth and stress-free as possible.
Ready to buy your first home? Contact us today and take the first step!
