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.