Buying your first home is exciting but can feel overwhelming. This step-by-step guide walks you through the entire process: from getting your finances ready to the day you get the keys.
Step 1: Check Your Finances (3 — 12 months before)
- Check your credit score: use a free service like Equifax or Credit Simple
- Review your spending: cut unnecessary expenses and start building a savings history
- Calculate how much you can borrow: use online borrowing power calculators
- Start saving your deposit: consider using the FHSS scheme
Step 2: Research Government Schemes
Check if you're eligible for any of these schemes before you start looking at properties:
- First Home Guarantee: 5% deposit, no LMI
- Help to Buy: 2% deposit, shared equity
- First Home Owner Grant: $10,000 — $15,000 cash
- Stamp duty concessions: save thousands
Step 3: Get Pre-Approval (1 — 2 months before)
Pre-approval (also called conditional approval) is a lender's indication of how much they're willing to lend you. It's not a guarantee, but it shows sellers and agents you're serious.
- Shop around with 2 — 3 lenders or use a mortgage broker
- Provide payslips, bank statements, tax returns, and ID
- Pre-approval typically lasts 90 days
- Don't change jobs, make large purchases, or apply for new credit during this period
Step 4: Start Property Hunting
- Use property portals: Realestate.com.au, Domain, and local real estate sites
- Attend inspections: look beyond the styling at structural issues
- Track properties: note days on market, price changes, and sold prices
- Consider location: Proximity to transport, schools, shops, and future infrastructure
- Research recent sales in the area to understand market value
Step 5: Make an Offer
Private Treaty (most common)
- Negotiate directly with the agent or vendor
- Make a written offer with a 66W certificate (NSW) or similar cooling-off document
- Pay a holding deposit (usually 0.25% of the price)
- If accepted, exchange contracts
Auction
- Register to bid on the day
- Set your maximum price and stick to it
- If you win, contracts are exchanged immediately: no cooling-off period
- Pay the deposit (usually 10%) on the spot
Step 6: Cooling-Off Period
Most states (except for auctions) have a cooling-off period after exchanging contracts:
| State | Cooling-Off Period | Penalty if you withdraw |
|---|---|---|
| NSW | 5 business days | 0.25% of purchase price |
| VIC | 3 business days | $100 or 0.2% of price |
| QLD | 5 business days (if property not auctioned) | 0.25% of purchase price |
| WA | No statutory cooling-off (varies by contract) | Varies |
| SA | 2 business days (if using Form 1) | Up to 0.25% of price |
| TAS | 2 business days | Varies |
| ACT | 5 business days | 0.25% of purchase price |
| NT | 4 business days | $500 or 0.25% of price |
Step 7: Arrange Final Approvals and Conveyancing
- Hire a conveyancer or solicitor: they handle all legal work, title searches, and contract review
- Final loan approval: your lender will do a valuation and issue formal approval
- Organise building and pest inspections: make sure there are no hidden problems
- Arrange insurance: building insurance is usually required before settlement
Step 8: Settlement (usually 30 — 90 days after exchange)
Settlement is the day the property officially becomes yours. Here's what happens:
- Your lender transfers the loan funds to the seller's bank
- Your conveyancer registers the title transfer with the land titles office
- You pay stamp duty before or at settlement (your conveyancer will advise)
- You get the keys: usually from the agent after settlement is confirmed
Step 9: After Settlement
- Change utilities (gas, electricity, water, internet) into your name
- Update your address with government agencies, banks, and subscriptions
- Set up direct debit for your mortgage repayments
- Consider an offset account to reduce interest
- Enjoy your new home!
Related Guides
- 10 mistakes first home buyers make
- How to choose a home loan
- How to save a deposit faster
- Which state is cheapest for first home buyers?
This is a general guide. Processes vary by state and lender. Always consult your conveyancer, broker, and lender for advice specific to your situation.
Why the Timeline Runs 3–6 Months
The buying process has natural pacing: pre-approval (valid 3 months) gives you a realistic budget, the search itself takes most first-time buyers 2–4 months of inspections, and the legal steps from offer to settlement take another 30–90 days. Every stage has a mechanism that protects you — the cooling-off period (usually 2–5 business days in most states) lets you withdraw from a private treaty sale with a small penalty, while auction sales have no cooling-off at all, which is why pre-auction due diligence matters. Building and pest inspections, conveyancing searches, and final loan approval all happen between exchange and settlement.
Action Plan: This Week's To-Do List
- Check your credit score and fix any errors before applying for pre-approval.
- Shortlist two or three lenders (or a broker) and compare comparison rates, not just headline rates.
- Confirm which government schemes you qualify for and their price caps for your area.
- Book a conveyancer now — good ones book out, and they review the contract before you sign.
- Set a budget for the extras: stamp duty, inspections, insurance, and moving costs.