Key takeaways:
Compare home loans early. Look beyond the headline rate and weigh up fees, features and lender fit.
Save for more than the deposit. Stamp duty, legal fees, inspections and moving costs can add up quickly.
Check your borrowing power before you shop. Pre-approval can help you set a realistic budget, subject to lender approval.
Know what support may be available. Grants, concessions and deposit schemes can vary by state and personal circumstances.
Inspect, negotiate and stay disciplined. A clear brief and firm budget can help you avoid costly mistakes.
Buying a home is a major financial decision, whether you are a first-home buyer, upgrader or investor. Market conditions still vary by location, and rate movements, affordability pressures and government settings can all affect your options.
The best place to start is with your budget, borrowing power and deposit. From there, you can compare loan options, research suburbs and understand the costs involved before buying.
These 11 home-buying tips walk you through the key steps before you buy, so you can prepare properly, avoid common mistakes and move ahead with more confidence.
11 tips to help you buy with confidence
Buying a home in Australia takes planning, and the right steps early can save time, stress and costly mistakes. The tips covered in this guide focus on the key stages of the process, from researching home loans and saving a deposit to pre-approval, inspections and negotiation.
1. Do your home loan research.
Taking the time to learn the ins and outs of home loans can make you a smarter borrower and land you a better mortgage.
Getting across the home loan lingo and learning about everything from interest rate types to the settlement process will give you confidence when applying for loans. But if you're feeling lost, a mortgage broker can help you navigate the process.
Even if you consider yourself to be a mortgage whiz, a mortgage broker can take a lot of pressure off you during the sometimes-stressful home-buying experience.
When it comes to researching home loans, don't just go for the first home loan you find without comparing it to others on the market. Take the time to look at loans offered by various lenders, even if it means going with a lender that isn't your 'usual' bank.
You might also be interested in: Understanding taxes when buying and selling a home
2. Give yourself plenty of time to save up a deposit.
Your home loan deposit will likely be the largest expense you pay upfront when buying. The bigger your deposit, the smaller home loan you'll require.
The benefit of having a smaller home loan is that it'll take less time to pay off, meaning you'll pay less interest over the life of your loan.
A larger deposit could also increase your borrowing power, meaning that you could get approved for a larger mortgage, which could help you afford that more expensive property.
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3. Make sure you save enough for your deposit.
The amount you'll ideally need to save for your deposit depends on a variety of factors, including the type of home you want to buy, its value and your finances.
In most circumstances, a 20% deposit is standard when buying a property to avoid paying lenders mortgage insurance (LMI). So, for example, if you want to purchase an $800,000 property, a 20% deposit would be $160,000. Some lenders will accept a small deposit but may charge LMI to account for the risk.
When you apply for a loan, your loan-to-value ratio (LVR) is calculated.
LVR measures how much a person is borrowing compared to the property's value. For example, if you buy a property valued at $2,000,000 with a $500,000 deposit, your LVR becomes 75%. Essentially, you are borrowing 75% of the property's value.
Generally, a lower LVR may be viewed more favourably by lenders and could improve access to a broader range of home loan options.
Whether you're aiming for a 5% or 25% deposit, building your savings can take time and careful planning.
4. Get your finances into shape.
In addition to saving up a deposit, it's important to make sure your finances are in order. This means not only saving up for a deposit, but also the many other home-buying costs involved.
Lenders typically prefer to lend to financially stable borrowers. This means that they'll comb through your financial records, including your bank statements and credit score.
In the period leading up to applying for a home loan, try to keep your expenses sensible so that the lender has no reason to hesitate in approving you.
Don't forget to check your credit report. You can access your credit report for free, and it's worth reviewing before applying for a home loan. This gives you a chance to check that the information is accurate and understand what lenders may consider when assessing your application.
What are the upfront costs of buying a home?
Here are some of the upfront costs that may apply when buying a home:
Home loan application and establishment fees
Legal and conveyancing fees
Property and pest inspection fees
Lenders mortgage insurance (LMI)
Read our guide for a full breakdown of the upfront costs of buying a home.
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5. Figure out what you want and need in a property.
When purchasing a home, whether it's an investment property or a place where you intend to live, it's helpful to have a clear idea of what you are looking for. This can narrow down your search and help real estate agents recommend potential properties to you. Create a list of essential features in a home, as well as 'nice-to-haves' and anything else you'd like to avoid.
Make sure you're also realistic about what you can afford. It's no fun falling in love with a property that you can't afford to buy. It is important to be financially responsible and notpush the limits of your budget if it could cause you financial stress in the future.
If you're struggling to find properties you can afford in your desired suburb, consider being open-minded about different locations. Alternatively, consider whether a smaller home or apartment could fit your needs if the location is really important to you.
You could even look into 'rentvesting', which is where you rent in your desired location while generating income from an investment property you own elsewhere.
6. Get home loan pre-approval so you can buy with confidence.
Pre-approval is an indication from a lender that they are likely to approve you for a specified loan amount. Mortgage pre-approval is conditional, so it doesn't guarantee final loan approval. However, it can give you a clearer idea of how much you may be able to borrow and the types of properties that fit your budget.
This can help you focus on properties within your estimated budget and could make it easier to act when you're ready to make an offer or bid at auction. In some cases, pre-approval may demonstrate to vendors that you've already taken steps towards securing finance, although it does not guarantee your loan will be approved or that a sale will proceed.
How much is a home loan pre-approval, and how long does it last?
Many lenders offer pre-approval at no cost, and it typically remains valid for between three and six months, depending on the lender. Some lenders may allow you to renew or extend your pre-approval, subject to their requirements and a reassessment of your financial circumstances.
First home buyer advice: If you're a first home buyer and not sure how to get your first home loan, our borrowing power calculator is a great place to start. This will give you an idea about how much you can borrow and what your repayments might be.
You might also be interested in: 6 ways to make the most of home loan pre-approval
7. Speak to a mortgage broker.
You can get a lot out of speaking to a mortgage broker. In addition to doing a lot of the hard work for you, they're also on hand to answer your questions and guide you through the loan application process. They can speak to lenders on your behalf and find home loans that could be a good fit for you. To provide potential recommendations, they'll get to know you and your needs.
There are so many home loans out there, and not all of them will be suitable for you. So, whether you need an expert to explain the difference between a fixed rate and a variable rate or would like to know more about your home loan options, a mortgage broker could help.
The best part? Most mortgage brokers provide their services for free.
You might also be interested in: First home buyer tips: What you need to know before you buy
8. Find out if you're eligible for government buyer assistance schemes.
Did you know there are several government schemes aimed at helping first-home buyers own property sooner? Some of the key schemes and grants available include:
First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment available to eligible first-home buyers who are buying or building a new home. Grant amounts, property price caps and eligibility rules vary by state and territory, so it is important to check the latest rules before you apply.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme allows eligible first-home buyers to purchase with as little as a 5% deposit without paying LMI. Eligible single parents and legal guardians may be able to buy with a deposit as low as 2% through the Family Home Guarantee stream.
Help to Buy Scheme
Help to Buy is a shared equity scheme that may help eligible buyers with a smaller deposit. Under the scheme, the Australian Government may contribute up to 30% of the purchase price of an existing home or up to 40% of a newly built home, which can reduce the amount you need to borrow. Income limits, property price caps and state and territory availability apply.
First Home Super Saver Scheme (FHSS)
The First Home Super Saver Scheme allows eligible buyers to make voluntary contributions into super and later withdraw some of those savings to help fund a deposit. It may offer tax advantages compared with saving outside super, but contribution limits and eligibility rules apply.
Stamp duty concessions and exemptions
Many states and territories offer stamp duty concessions or exemptions for eligible first-home buyers. How much you may save depends on where you are buying, the property's value, and whether you meet the relevant criteria.
Before you rely on any government scheme, check the latest eligibility criteria, property price caps and application steps. Rules can vary by state, territory and personal circumstances, and government programs can change over time.
You might also be interested in: Stamp duty concessions for non-first-time home buyers
9. Look beyond interest rates.
It's crucial to look beyond the interest rate when applying for a home loan. Yes, getting a competitive interest rate is important, but what else should you consider?
Fees: Some lenders charge administrative fees on their home loans, which can increase your home loan repayments
Features: See if it's worthwhile to get a loan feature like an offset account or redraw facility
Customer service: The level of service provided by the lender is also important to consider, along with how well they keep customers informed of changes. Read lender reviews or ask around for word-of-mouth recommendations.
Interested in seeing how your repayments could be? Use our home loan repayment calculator.
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10. Get the property professionally inspected.
No one wants to get stuck with a dud property, so don't let your excitement rush you into a purchase before you've done your research. This is where you might consider getting a professional building inspection and pest inspection.
A building inspection carefully examines the property's physical condition, identifying current issues and potential future problems. Meanwhile, a pest inspection checks for potential infestations and damage caused by pests (e.g. termites).
Both inspections will cost money, but the peace of mind is usually worth it.
If an inspector flags an issue, that doesn't necessarily mean you shouldn't buy it. You can use this problem to negotiate a lower price with the vendor or get them to repair it before selling.
11. Negotiate as hard as possible.
Everyone wants a good deal, and you may need to be prepared to negotiate to get one. Even if you can get the price down by $15,000, it all adds up in the long run.
Here are some property negotiation tips:
Come prepared with research about the local property market and comparable homes that have sold recently.
Listen to the vendor's needs. Do they need a fast settlement? Could you negotiate the price down in exchange for speeding up the settlement time?
Leave the emotions at the door and don't let them sway you into making a poor decision.
Don't provide an offer or bid you can't afford. Set a strict upper limit and stick to it.
Be prepared to walk away. There will be other properties.
Remember, buying a home is easier with a clear plan and the right support. If you know your budget, understand the costs and compare your options early, you will be in a stronger position to move ahead with confidence.
Buying a home with confidence in 2026
Buying well comes down to preparation.
If you compare loans, understand the upfront costs, check your eligibility for support and keep your budget realistic, you will be in a stronger position to buy with confidence. An Aussie Broker can help you compare options, check your borrowing power and guide you through the process.
