Buying your first home can be exciting, but it also involves many unfamiliar steps and decisions. It takes preparation, patience, and a clear understanding of the process.
So, how do you navigate it without feeling overwhelmed or missing something important? Well, the first thing you need to realise is that it’s completely normal to feel unsure about where to begin or worry about getting it wrong.
This guide is here to help you make sense of the process, one step at a time, so you can feel more in control and confident about your next move.
Preparing To Buy A Home
Before you even start scrolling through property listings, it’s important to get your finances in order. Here are the key steps:
- Calculate your borrowing power to understand how much you could potentially receive
- Work out how much to save for a deposit. Most lenders require at least 5–20% of the property value.
- Consider the other costs associated with homebuying. Miscellaneous costs include stamp duty, conveyancing, pest inspections and more.
- Set your homebuying budget. Combine your savings, expected borrowing power and ongoing expenses to set a realistic price range.
- Gather important documents. Lenders will need payslips, bank statements, tax returns and more.
- Learn from real-life case studies and avoid costly mistakes.
- Gain confidence in the process with easy-to-follow tips.
Working With a Mortgage Broker
Buying a home is a huge financial decision and you don’t have to do it alone. A mortgage broker can help you compare loans, access better deals, and navigate the application process.
- Why use a mortgage broker? Because they can save you time, stress, and often money.
- When you are looking for a broker, try to find someone experienced with first-home buyers and transparent about their commissions.
- What to ask your mortgage broker – Make sure you understand fees, loan options, and the timeline ahead.
Explore Government Schemes and Grants
First-home buyers in Australia have access to several government programs designed to make homeownership more affordable.
- Home Guarantee Scheme (HGS) – Buy with as little as 5% deposit, with no LMI.
- Shared Equity Scheme – Some state governments may co-purchase with you to reduce the upfront cost.
- First Home Owner Grant (FHOG) – A lump-sum payment that can go toward your deposit or construction costs.
- Stamp-Duty Exemptions or Concessions – Save thousands depending on your state and purchase price.
How to Find the Right Property
Once your finances are sorted and pre-approval is in hand, the search begins. Here is a list of things to consider:
- Types of property – Apartments, townhouses, houses – each has pros and cons.
- Location – Look at transport, schools, employment hubs, and future growth.
- New vs old properties – New homes may come with fewer repairs and more incentives; older homes might offer better value and character.
- Building or renovating – You might choose to construct your dream home or take on a fixer-upper project.
Understand Home Loan Basics
Before signing on the dotted line, make sure you understand how home loans work.
- Home loan types – Understand which loan type (variable, fixed, split) works for you.
- Interest rates – Know how a small interest rate difference can affect your repayments.
- Loan features – Learn about offset accounts, redraw facilities, and repayment flexibility.
The Homebuying Process
Once you find the right house for you, here’s what comes next:
- Use a Home Loan Application Checklist to prepare.
- Get pre-approval so you’re ready to make an offer.
- Make an offer and negotiate. Your broker or buyer’s agent can assist.
- Understand the contracts and legalities. Engage a solicitor or conveyancer.
- Organise home insurance before settlement.
- Prepare for settlement, the final step before the keys are yours.
Final Words
Buying your first home may feel like climbing a mountain but when you break it down, you get a series of easy steps you can take.
The first step is to get your finances sorted. After that, get a mortgage broker’s help and then make your next move. And if you are interested in working with a mortgage broker to purchase your first home, enquire online with us for free or call us on 1300 889 743.