How do you buy your first home?
Start by working out what you can comfortably spend and how much cash you need. Prepare your finance, compare and investigate properties, then get advice on your offer or auction approach. Once the purchase is underway, keep the finance, legal and moving tasks organised through to settlement.
1. Start with a budget you can live with
Your first home budget has two sides: the money you can put into the purchase and the repayments you can comfortably manage afterwards. Work through both before turning a borrowing estimate into a property price range.
- Start with your everyday spending. Review regular bills, debt repayments, transport, food and the spending you want to keep. Allow room for saving and unexpected costs alongside the mortgage.
- Separate the price from the total cost. Put legal work, inspections, moving and any immediate repairs on a separate list. After you move, ownership costs such as rates, insurance and maintenance still need a place in your budget.
- Choose your own timing. Choose a buying timeline that fits your work, savings and plans for the next few years. Agree on what needs to be in place for your household to feel ready.
2. Work out how much cash you need
Divide your savings between your contribution to the property price, buying costs and the cash buffer you want to keep after moving.
- Your savings
- $100,000
- Set aside for buying costs
- − $15,000
- Keep as a cash buffer
- − $10,000
- Available towards the property
- $75,000
Illustrative figures. Use your own buying costs and the buffer you want to keep.
The Australian Government 5% Deposit Scheme can help eligible first home buyers purchase with a smaller deposit without LMI. You still need to meet the scheme rules and the participating lender’s lending requirements. Check the property price cap and your eligibility before budgeting around it.
Moneysmart explains how LMI works; your state revenue office sets the rules for grants and duty concessions.
- Set aside purchase costs. Ask for estimates for legal work, inspections and moving. Use the relevant state calculator to explore transfer duty; the Queensland calculator below is for Queensland purchases.
- Check the loan structure. Your deposit, proposed loan and property value work together. Lenders mortgage insurance (LMI) protects the lender if you cannot repay. You remain responsible for your loan repayments. Ask whether it applies and whether it is paid upfront or added to the loan.
- Ask about assistance early. A government loan guarantee, a first home owner grant and a transfer-duty concession each provide a different form of assistance. Check the eligibility rules for each option before including it in your budget.
3. Get your finance ready for the search
Bring your income, savings, existing debts and buying plans to your finance conversation. Your broker can use these details to compare loan options that suit your circumstances.
- Organise your information. Gather current income, savings and debt information. Ask which documents are needed for your employment situation, especially if your income changes or you work for yourself.
- Compare the whole loan. Discuss repayments, fees and the features you would use. Ask how extra repayments, access to savings and future changes to your plans would work with each option.
- Understand what remains to be checked. Pre-approval gives you a conditional indication of what you could borrow to guide your search. Final approval depends on the lender completing its checks, including the property and any outstanding conditions. Ask when your pre-approval expires and what remains to be assessed.
Turn your numbers into a buying plan
Choose purchase or build in the enquiry form, then share your contact details. For the finance conversation, have your income, savings, debts and target price handy. We can help you understand borrowing options, the cash you may need and your next application steps.
or call 1300 088 065
Your circumstances and the property will determine the options available.
4. Compare homes with a repeatable checklist
Write down what a home needs to offer for your daily life. Use the same questions at each inspection and compare each property against your priorities, price research and inspection findings.
Take these four checks to every inspection
- Daily life
- Try the commute, check storage and parking, and visit the street at different times. Record which must-haves the home meets.
- Price evidence
- Find recent sales of similar homes. Note differences in land, floor area, condition and location before deciding what this property is worth to you.
- Building and site
- Record visible damage and ask about repairs. Arrange appropriate building and pest inspections, and check relevant flood or planning information.
- Contract and ongoing costs
- Have your solicitor or conveyancer review the contract and relevant records. Ask about rates, insurance and, for strata property, levies and planned works.
Keep the same notes for every shortlisted home. An unresolved issue belongs on your follow-up list before it disappears behind a fresh coat of paint.
5. Prepare for the way the property is being sold
Once a home is worth pursuing, turn your research into a purchase plan. Agree on your price limit and talk through the sale process with your legal representative and your finance position with your broker before committing.
Making an offer
- Propose a price, settlement date and any conditions with advice from your legal representative.
- A seller can accept, reject or negotiate. Agree how much room you have before negotiations begin.
- Ask which finance and inspection protections the contract actually gives you, and record their deadlines.
Bidding at auction
- Review the contract, arrange checks and confirm your finance position before auction day.
- Confirm registration, deposit payment and settlement requirements with the agent and your legal representative.
- Set a firm maximum bid. In Queensland, a successful auction buyer has no cooling-off period.
Rules differ by state and sale circumstances. The Queensland Government’s buying guide explains the local process. Have your legal representative confirm the rules for your purchase.
6. Keep the path from contract to keys organised
After the purchase is underway, the job becomes coordination. Your finance, legal work and moving arrangements need to progress together, with a clear record of what is complete and who is handling the next task.
| Task | Work with |
|---|---|
| Track contract conditions and deadlines | Your solicitor or conveyancer: confirm dates, outstanding conditions and the funds needed for settlement. |
| Complete loan approval and documents | Your broker and lender: supply requested information, complete loan documents and confirm readiness for settlement. |
| Arrange insurance and final inspection | Your insurer, legal representative and agent: confirm when cover should start and check the property before handover. |
| Organise the move and collect keys | Your agent and legal representative: wait for settlement confirmation before arranging key collection. Organise utilities and moving logistics. |
After moving, update your budget for repayments, rates, insurance and maintenance. Keep an accessible buffer for the costs that arrive before your new routine settles.
First home buyer questions
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