Eligible first-home buyers may be able to buy with just a 5% deposit and no Lender Mortgage Insurance (LMI).
This 10-step checklist breaks down what to expect and when.
Includes tools, calculators, and helpful broker insights.
Government grants and stamp duty concessions vary by state.
An Aussie Broker can give you free^ guidance and access to 25+ lenders**
Buying your first home is a big milestone, and it comes with a mix of excitement, nerves and a whole lot of new information.
Between saving a deposit, getting pre-approval, navigating legal paperwork and understanding property reports, it’s easy to feel like you’re missing something.
That’s why we’ve created this step-by-step checklist. Whether you’re just starting to save or already inspecting properties, it’s designed to help you move forward with confidence.
And while the list is long, you don’t have to do it all alone. From brokers to conveyancers, inspectors to agents, there’s support available at every step.
Use this as a reference, revisit it as often as you need, and know that help is always just a call away.
Step 1: Build your deposit and savings
How much do you need to buy your first home? That depends on the property, the lender, and whether you’re eligible for government support.
If you qualify for the Home Guarantee Scheme, you may be able to buy with a 5% deposit and no Lenders Mortgage Insurance (LMI). Without it, most lenders expect a 10-20% deposit.
Deposit size | What it means | Notes |
|---|---|---|
5% | Possible with Home Guarantee Scheme | No LMI if approved* |
10% | May still require LMI | Some lenders offer reduced rates |
20% | Standard deposit | No LMI, widest range of loan options |
Why this matters: Lenders also want to see “genuine savings” or the money you’ve saved over time. Some may also accept rental history. Your broker can help you find out what counts.
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Step 2: Get your finances in order
Before applying for a loan, lenders want to see that your finances are stable and manageable.
Credit score: Check yours using the Aussie Free Credit Score Tool
Debts: Credit cards, personal loans and “buy now, pay later” accounts reduce your borrowing power. Even unused credit card limits count.
Budget buffer: Many first-home buyers forget about upfront costs like stamp duty, inspections and moving fees. Building in a buffer avoids last-minute stress.
Cost type | Estimated costs |
|---|---|
Varies by state | |
Conveyancing / legal | $1,000-$1,500 |
$300-$700 | |
Moving / setup | $1,000-$2,500 |
LMI (if required) | Varies by lender |
Step 3: Know your buying options
Deciding how you’ll buy early on helps avoid confusion later. You can buy:
Solo: Full ownership and responsibility
Joint: Shared with a partner or family member
Tenants in common / trusts: More complex ownership structures. These have legal and tax implications, so always get professional advice first.
This choice affects how you apply, what you’re eligible for, and how the property is split if plans change down the track.
Step 4: Check your eligibility for grants and schemes
Government support can reduce the deposit and upfront costs for first-home buyers, but eligibility varies by state and circumstances.
Home Guarantee Scheme: Buy with 5% and no LMI (eligibility criteria apply).
First Home Owner Grant (FHOG): One-off payment in most states
Stamp duty concessions: Reductions or exemptions based on price and location
State | FHOG | Stamp Duty Relief? |
|---|---|---|
Yes (new homes only) | Yes (up to $800k) | |
Yes | Yes (up to $600k full; tapered to $750k) | |
Yes | Yes (up to $500k) | |
Yes | Yes (varies) | |
Yes | Yes (limited to new builds) | |
Yes | Limited | |
Yes | Means-tested | |
Yes | Limited |
Tip: Each scheme has strict rules on income, property value and residency. Always check your state’s latest criteria.
Step 5: Meet with a broker
This is the shortcut that can simplify Steps 1-4.
Your Aussie Broker can:
Check what you’re eligible for (grants, schemes, exemptions)
Calculate your real borrowing power
Give you access to home loans from over 25 lenders** and 3000 options.
Help structure your application the right way to improve approval chances.
Whether you’re just starting out or ready to apply, your first meeting is free.^
Step 6: Get pre-approval
Pre-approval is written confirmation from a lender (often called an approval in principle) that you can borrow up to a set amount, subject to conditions.
It’s not verbal: Agents may talk about a “yes”, but what counts is the lender’s pre-approval letter.
What it covers: Income, savings, debts, credit history, living expenses and dependents. Lenders check your whole financial profile.
How long it lasts: Typically valid for 60-90 days. If it expires, you may need to reapply.
Why it matters: With pre-approval, you can make stronger offers, bid at auction with confidence, and avoid wasting time on homes outside your range.
Here are the documents you’ll usually need for pre-approval.
To apply, lenders will ask for:
ID | Passport, Driver’s Licence, Medicare card (to verify identity). |
Income details | Recent payslips, tax returns, or accountant statements if self-employed. |
Bank statements | To show savings history and spending patterns. |
Liabilities | Statements for credit cards, personal loans, HECS/HELP debt, car loans, even unused credit card limits can count. |
Living expenses | Details of rent, utilities, groceries, transport, and other regular bills. |
Dependents | Information on children or other dependents. Lenders assess how this impacts your household budget. |
Your broker won’t collect the documents for you, but they’ll give you a clear checklist, explain what each lender requires, and lodge the application on your behalf. This saves you from second-guessing what to provide.
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Step 7: Research the market and shortlist homes
With pre-approval in place, you know your budget. Now it’s about finding the right property.
Use tools like:
Suburb reports: Look at price trends, rental yields, upcoming infrastructure (new train lines, schools, hospitals). Growth areas often mean stronger long-term value.
Sold property data: Asking prices aren’t always selling prices. Checking recent sales stops you from overpaying.
Inspection strategy: Good homes can attract multiple buyers within weeks. Try to attend mid-week inspections (often less crowded than Saturdays).
Hidden costs by suburb: Some councils charge higher rates or strata levies - factor these into affordability.
Tip: Don’t just search by postcode. Check school zones, flood risk maps and council development plans. These can directly affect property value and lending approval.
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Step 8: Do your due diligence
Before you sign anything, inspect, review, and protect yourself. Skipping due diligence is one of the most expensive mistakes first home buyers make.
Building & pest inspections: Detect termites, structural cracks, leaks. A $500 inspection can save you potentially tens of thousands in repairs.
Strata report (apartments/townhouses): Reveals the financial health of the body corporate, upcoming levies, disputes.
Contract review: A solicitor or conveyancer should explain your obligations, hidden clauses, and cooling-off rights.
Title & zoning searches: Check for easements, flood zones, or development restrictions.
Why this matters: If you sign without checking, you’re legally bound, even if issues are uncovered later.
Step 9: Make an offer or bid at auction
Here’s what happens next:
Private sale: Submit a written offer through the agent. If accepted, you’ll sign the contract and pay a holding deposit (amount varies). In most states, private sales include a cooling-off period of 2-5 business days, but rules differ. Check your state laws.
Auction: If you’re the winning bidder, the sale is unconditional. There’s no cooling-off period in any state. You’ll usually need to pay a 10% deposit on the day, unless you negotiate otherwise before bidding.
Property valuation: Your lender will order this before giving unconditional approval. If the valuation is lower than your purchase price, you may need to make up the shortfall.
Unconditional approval: Once the lender is satisfied, you’ll receive formal approval and can exchange contracts.
Tip: Always confirm your state’s cooling-off rules with your solicitor or conveyancer before signing.
You might also be interested in: When should I make an offer on a house?
Bonus tips for first-home buyers
Even with the right plan, many first-home buyers get caught by the same traps.
Here’s how to sidestep them:
House-hunting before pre-approval: Without pre-approval, you don’t know your real budget. Agents and sellers won’t take you seriously, and you risk falling in love with a home you can’t actually afford.
Relying on vendor-supplied reports: Always order your own building, pest, and strata inspections. Vendor reports can be selective, and if issues pop up later, the cost is on you.
Forgetting the “ongoing” costs: A deposit is just the start. Rates, insurance, strata fees, utilities, maintenance, these can add hundreds per month. Plan for them now, not after you’ve moved in.
Underestimating how fast homes sell: In many suburbs, properties move within weeks. Pre-approval and paperwork readiness mean you can act quickly, rather than miss out.
Overstretching in a bidding war: Auctions are emotional. Set your limit beforehand and stick to it. Lenders will only fund up to the approved amount. If you go over, the shortfall must come from your savings.
Pro tip: Your Aussie Broker can stress-test your budget and help you avoid overcommitting.
Step 10: Settlement and move-in
Settlement is the legal handover and the day you officially own your home.
What happens: Your lender releases the loan funds, the title is transferred into your name, and your conveyancer confirms completion.
Timeframe: Usually 30-90 days after contracts are exchanged.
Insurance: Many lenders require you to have building insurance in place before settlement.
Practical prep: Book removalists, set up utilities, redirect mail, and notify the ATO, Medicare and banks of your new address.
Tip: Have a buffer. Unexpected settlement delays can mean paying “penalty interest” if you can’t settle on time.
You don’t have to figure this out alone
Buying your first home isn’t just about getting a loan, it’s about navigating grants, contracts, inspections, and deadlines.
It can feel overwhelming, but with the right support, you don’t have to figure it out alone.
An Aussie Broker will:
Check if you qualify for the Home Guarantee Scheme or state-based concessions.
Compare home loans from over 25 lenders** to find a fit for your budget and goals.
Guide you through pre-approval, inspections, contracts and settlement, step by step.
Next step: Book a free^ chat with an Aussie Broker today.
It’s the simplest way to move from saving a deposit to holding the keys. Whether you’ve just started saving or you’re ready to make an offer, this checklist is here to help you move step by step. And when you’re ready, we’re here to help.
Glossary
Conveyancer
A licensed professional who manages the legal side of buying or selling property, including reviewing contracts, coordinating settlement and handling paperwork.
Cooling-off period
A set number of business days (varies by state) where the buyer can withdraw from a signed contract, usually with a small penalty.
LMI (Lenders Mortgage Insurance)
Insurance that protects the lender if a borrower defaults on a home loan. Usually required if your deposit is less than 20%, unless waived through a scheme.
Stamp duty
A government tax on property purchases. Rates vary by state, with discounts for eligible first-home buyers.
FHOG (First Home Owner Grant)
A one-off payment to eligible first-home buyers, usually for newly built homes. Each state has its own criteria and amount.
