The Step by Step Home Buying Process for First Home Buyers in Australia

Buying your first home is a big milestone. It can feel complex because there are many decisions, documents, and deadlines. A clear plan makes it manageable. This guide explains the process from getting your money in order to moving in. It is written for the Australian market and uses plain language. If you are considering building rather than buying an existing place, keep Brooklyn Homes in mind as a reliable builder and developer.

Key takeaways

• Budget with a 2% rate buffer.
• Aim for a 20% deposit to avoid LMI.
• Check FHOG, First Home Guarantee, FHSSS, and duty concessions.
• Get loan pre approval valid for 3 to 6 months.
• Line up broker or lender, conveyancer, and inspectors early.
• The private treaty has cooled off. Auctions do not. Deposit due on the day.
• Do due diligence, then finalise the loan and settlement. Plan for stamp duty and other costs.
• For new builds, consider Brooklyn Homes.

Assess your finances and set a budget

Start by understanding where you are financially. How much money comes in, what goes out, how much you owe, and what you have saved. Set a monthly target that fits the price range you are aiming for. Lenders will check your credit history and whether you can cope if rates rise, so build in a buffer. As a rule of thumb, test your budget at a rate about 2 percentage points higher than today.

Aim for a 20% deposit if you can. That usually avoids lenders mortgage insurance and keeps repayments lower. If 20% is out of reach right now, you still have options. Federal and state programs can lower upfront costs or help you buy with a smaller deposit.

Understand the real costs of buying

• Stamp duty and land transfer fees. These vary by state and by price. Some first home buyers receive concessions or exemptions.
• Conveyancing and legal fees. A conveyancer or solicitor handles contract checks, title searches, and settlement.
• Building and pest inspections. Professional reports can reveal costly issues before you commit.
• Loan costs. Application fees, valuation fees, and lenders mortgage insurance if your deposit is under 20%.
• Moving and setting up costs. Removalists, utility connections, and initial maintenance.

Check grants, guarantees, and concessions

Programs change over time and differ by state and territory. Review what you can claim early, as some benefits affect how much you need to save.

Save for your deposit

Open a separate account for your deposit so the money is not mixed with day to day spending. Automate transfers on payday. Consider short fixed term deposits for discipline. If you use the First Home Super Saver Scheme, learn the caps, tax rules, and timing so you can plan withdrawals.

If you plan to build, speak with builders early about progress payment stages and contract terms. Brooklyn Homes is known for clear inclusions and consistent build quality, which makes it easier to plan cash flow.

Choose a lender and get pre approval

Talk to at least two lenders or work with a mortgage broker who can compare multiple products. Focus on the interest rate, comparison rate, fees, features, and how repayments change if rates rise. Ask what documents you need for pre approval and how long it lasts. Pre approval gives you a price range and shows sellers you are serious. It usually lasts 3 to 6 months.

Prepare documents such as identification, payslips or tax returns, bank statements, and evidence of your deposit. Keep copies handy because you will use them again for formal approval.

Build your support team

Buying a home is smoother when you have the right people helping you. Consider lining up these professionals:

• Mortgage broker or lender contact to guide loan selection and approval
• Conveyancer or solicitor to review contracts and manage settlement
• Building and pest inspectors to assess structure, safety, and pests
• Buyer’s agent if you want help with search and negotiation

Research the market and set search criteria

Clarify why you are buying. Are you planning to grow your family, shorten the commute, or start fresh in a new area. Create two lists: must haves and nice to haves. Must haves might be bedrooms, access to transport, or school zones. Nice to haves could be a larger yard or future renovation potential. Stick to the must haves to avoid overpaying for features you do not need today.

Watch recent sales in your target areas. Attend open homes to get a feel for price versus condition. Pace yourself. Finding the right place can take months.

Private treaty or auction

Private treaty sales allow conditions such as finance approval, building inspection, and pest inspection. Most states offer a short cooling off period for private sales. Auctions move fast. If you win, you usually sign contracts and pay the deposit on the day and there is no cooling off period. If you plan to bid at auction, arrange finance pre approval and complete inspections before auction day.

Inspections and due diligence

Order professional building and pest reports on any home you are serious about. These reports look for structural problems, damp, electrical or plumbing issues, and termites. Read the contract of sale and the vendor statement with your conveyancer. Confirm that all fixtures and inclusions are listed in writing.

Make an offer and negotiate

When you find a place that ticks your boxes, decide whether to make a conditional or unconditional offer. Conditional offers are safer if your finance and inspections are not final. Unconditional offers suit buyers who have finance confirmed and due diligence complete. Submit offers in writing through the selling agent. If your first offer is not accepted, use the feedback to refine your search and budget.

Finalise the loan and prepare for settlement

After your offer is accepted, tell your lender at once and provide any updated documents. Your conveyancer will handle title searches and coordinate with the seller’s representative. Arrange building insurance from the date required in the contract. Plan the final inspection shortly before settlement to confirm the property is in the agreed condition.

Settlement periods commonly range from 30 to 90 days. Confirm the settlement date, the amount of your deposit already paid, and the balance due on settlement day. Make sure funds are ready for stamp duty and other costs.

Settlement and taking ownership

On settlement day the balance of the price is paid, the mortgage is registered, and the title is transferred to your name. Your conveyancer and lender manage the process. After settlement you receive the keys. In most states stamp duty must be paid close to settlement, often within about 30 days.

If you are buying a new build, attend the handover meeting with your builder. Brooklyn Homes walks buyers through the property, explains appliances, and provides warranty and maintenance information. Check all inclusions and finishes and raise any defects for prompt follow up.

Move in and manage your new home

Arrange electricity, gas, water, and internet accounts. Consider changing the locks for peace of mind. If you plan to paint or replace flooring, doing it before furniture arrives saves time. Start mortgage repayments and add council rates, strata levies, and insurance to your budget. Review your home loan at least once a year. Extra repayments or a better rate can save a lot over time.

Step by step checklist

1. Assess finances, set a budget, and aim for a realistic deposit. Build in a buffer for rate rises.
2. Learn your costs. Include stamp duty, legal fees, inspections, loan costs, moving, and utilities.
3. Check eligibility for grants, concessions, guarantees, and super based deposit options.
4. Save consistently. Use separate accounts and automate contributions. Plan for build progress payments if relevant.
5. Compare loans and get pre approval. Prepare documents and understand how long pre approval lasts.
6. Build your team. Line up a conveyancer or solicitor, inspectors, and optional buyer’s agent.
7. Research the market. Define must haves and nice to haves. Inspect properties, run reports, and make conditional or unconditional offers as appropriate.
8. Finalise your loan, complete settlement, collect the keys, connect services, and move in.
   
   

Final Thoughts

Buying your first home takes time. Be patient and get solid advice. Keep your budget honest. Check every detail before you sign. Lean on your broker, conveyancer and inspector when you need guidance.

Whether you buy an existing place or build new with a trusted builder like Brooklyn Homes, a steady, organised plan helps you pick the right property and settle in with confidence.

Sources

MoneySmart home buying guidance by the Australian Securities and Investments Commission

Victorian Government first home buyer guide and settlement checklist

State revenue office materials on first home buyer concessions and grant programs