The Ultimate Checklist to Buying a House in Australia (2025)

Buying a house is a milestone, whether it is your first address or the next addition to your portfolio. This guide walks you through the steps that matter most while keeping jargon out of the way. It draws on advice from the Reserve Bank of Australia, ASIC’s Moneysmart, CoreLogic research, and each state revenue office so you can rely on solid data, not hearsay.

1. Get Your Money Ready

Set a ceiling early. A lender or mortgage broker will calculate your borrowing power after looking at your income, everyday spending and any existing debt. Ask for a written pre‑approval that lasts at least ninety days. Pre‑approval does not lock you in yet it proves to agents that you can settle. According to Moneysmart, buyers who shop with approval in hand avoid the top three finance‑related contract delays.

Aim for a healthy deposit. Twenty per cent of the purchase price removes lenders’ mortgage insurance (LMI) and can cut your interest rate (RBA Lending Indicators, March 2025). If you need to buy sooner, federal Home Guarantee schemes let eligible buyers enter with five per cent or even two per cent if you are a single parent. The National Housing Finance and Investment Corporation confirms that the guarantee covers the lender so you avoid LMI, but your repayments stay the same size as a ninety‑five per cent loan would require.

Budget beyond the sticker price. Stamp duty often lands between three and five per cent of the price depending on your state, though first‑home concessions can wipe it out completely for lower priced homes. Add legal costs, a building and pest report, moving fees, connection fees and insurance. CoreLogic’s quarterly Pain and Gain Report shows that buyers who leave no cash buffer are twice as likely to sell at a loss within five years.

2. Know the Help on Offer

Government support changes often, so bookmark the relevant state revenue site and NHFIC’s Home Guarantee page. In early 2025 the major nationwide programs are:

• First Home Guarantee for new or existing homes with a five per cent deposit.
• Regional First Home Buyer Guarantee for buyers in eligible postcodes outside the capitals.
• Family Home Guarantee that lets single parents purchase with a two per cent deposit.

Each state also offers a cash First Home Owner Grant or a stamp duty discount. Queensland recently doubled its grant to thirty thousand dollars for new homes up to seven hundred and fifty thousand. South Australia removed the price cap for its fifteen thousand dollar grant in June 2024. Check the dates because incentives vary inside the same financial year.

3. Handle the Legal Work

The Contract of Sale is a legal promise, not a mere formality, so send it to a conveyancer or solicitor before you sign. They will review the title, easements, covenants and any special conditions. A good solicitor will also insert a finance clause if the sale is by private treaty. Private sales give a short cooling‑off window in most states: five business days in NSW and Queensland, three in Victoria, two in South Australia, and four in the Northern Territory. Tasmania and Western Australia have no automatic cooling‑off, so a negotiated clause is crucial there. Auction contracts have no such safety net anywhere in the country so order your inspections before you raise a paddle.

Settlement takes place thirty to ninety days after exchange. Your conveyancer, your lender and the seller’s lawyer complete the money and title transfer online through PEXA. Ensure that you conduct a final inspection on the morning of settlement. This is your last chance to confirm the property is in the same condition you agreed to buy.

4. Inspect Before You Commit

A building and pest inspection sounds like an extra expense until you consider that termite repair can climb past fifty thousand dollars according to the Australian Environmental Pest Managers Association. Hire a licensed inspector with professional indemnity cover and ask them to walk you through the key findings on site.

Buying an apartment or townhouse? Order a full strata report. The Owners Corporation Network advises reading the last two years of meeting minutes to catch costly disputes or low funds that could trigger a special levy. Some buyers skip this step and then face a ten thousand dollar levy for a roof replacement in year one.

Review council planning portals for any road or rail projects near your target property. State infrastructure maps list future corridors and these influence value more than colour schemes do.

5. Judge the Location Like a Local

CoreLogic’s Home Value Index shows that suburbs with reliable public transport, quality schools and diversified employment bounce back fastest when the market cools. Use ABS crime statistics and My School data to back up in‑person impressions. Visit at different times: weekday peak, late evening and weekend afternoon. Listen for aircraft, watch traffic, note street lighting and speak to neighbours. These real‑life observations often reveal issues that photographs hide.

6. Compare Property Types

Houses sit on their own land, so land value usually drives stronger capital growth over time. Apartments cost less up front and suit low‑maintenance lifestyles, yet strata levies can exceed five thousand dollars a year in buildings with lifts and pools. Townhouses provide a balance: a small yard and lower levies than a tower block. Off‑the‑plan purchases can bring stamp duty savings and brand‑new finishes though they carry the risk of construction delays or builder insolvency. Check the developer’s track record on the state building commission site before you sign any off‑the‑plan contract.

7. Choose the Right Professionals

A mortgage broker explains loan options and handles paperwork that frustrates many first‑time buyers. They are paid by the lender, so you rarely pay them directly, and ASIC regulates broker behaviour.

A buyer’s agent can be useful in tight markets. They research value, shortlist properties and bid on your behalf. Their fee is generally one to two per cent of the purchase price or a fixed amount, always plus GST, so weigh the cost against the time you save and the discount they claim to negotiate.

A conveyancer or solicitor handles the legal details. Fees differ, yet the Law Societies in each state publish recommended ranges to keep quotes transparent. Pick a practitioner who carries professional indemnity insurance and who phones you back promptly.

The building and pest inspector looks for structural faults, moisture, termites and safety hazards. Certification varies by state but most inspectors hold a Certificate IV in Building and Construction plus a pest management licence.

8. Avoid the Classic Pitfalls

Many buyers fall into traps that experienced professionals spot at once. Keep these front of mind:

• No finance safety net. Pre‑approval is vital, but interest rates can still change before settlement. Leave a buffer. The RBA raised the cash rate thirteen times between May 2022 and November 2024.
• Skipping inspections. A patched‑up wall can hide a termite nest. Trust reports, not seller assurances.
• Ignoring strata finances. A low levy looks attractive until a lift breaks and the owners vote for a special levy.
• Stretching to the limit. Life throws curveballs; secure a loan that leaves room for rate rises and unexpected repairs.
• Chasing every auction. Emotional bidding inflates prices. Set a walk‑away figure on paper before the auction begins and do not cross it.

9. The Fast Last Check

1. Deposit and all fees sit in your account, ready to transfer.
2. Written loan approval matches the contract price.
3. Legal review complete and any finance clause cleared.
4. Building, pest and (if needed) strata reports read in full.
5. Government incentives confirmed with lodged forms.
6. Final inspection shows no new damage and all inclusions remain.

Tick every box and you can step across the threshold with confidence.

References

• Reserve Bank of Australia, Lending Indicators, March 2025.
• Australian Securities and Investments Commission, Moneysmart Home Buying Guide.
• National Housing Finance and Investment Corporation, Home Guarantee Scheme, 2025 update.
• CoreLogic, Pain and Gain Report, Q1 2025.
• CoreLogic, Home Value Index, April 2025.
• Australian Environmental Pest Managers Association, Termite Damage Factsheet, 2024.
• Owners Corporation Network, Strata Health Checklist, 2024.
• Each state revenue office website, grant and stamp duty schedules, accessed May 2025.

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