Key takeaways
Follow a step-by-step checklist to prepare for buying your first home.
Learn about deposits, government support, stamp duty, and other upfront costs.
Understand what to do before, during and after buying, so you can move forward with confidence.
Buying your first home is a major milestone but knowing where to start can feel overwhelming.
From saving a deposit and understanding upfront costs to exploring government support and applying for a home loan, there are plenty of moving parts to consider.
The good news is you don't have to figure it all out at once. Breaking the journey into manageable steps can help you stay organised and make more confident decisions along the way.
Whether you're just starting to save or already inspecting properties, this step-by-step checklist is designed to help you understand what's involved at each stage of the journey.
And while the list is long, you don't have to do it alone. From brokers to conveyancers, inspectors to agents, there are professionals who can help guide you along the way.
Use this checklist as a reference, revisit it whenever you need to, and take each step at your own pace.
Step 1: Build your deposit and savings
One of the first questions many buyers ask is: How much deposit do I need?
The answer depends on the property you're buying, your lender's requirements, and whether you're eligible for government support.
While a 20% deposit is often considered the benchmark because it may help you avoid paying lenders mortgage insurance (LMI), it isn't the only path to home ownership.
Some eligible first home buyers may be able to purchase with a smaller deposit through Australian Government support programs.
Here's what different deposit sizes could mean when buying your first home.
Deposit size | What it means | Things to consider |
|---|---|---|
2% | May be possible through Help to Buy for eligible buyers. The Australian Government contributes an equity share towards the purchase price. | Eligibility criteria, property price caps, and availability apply. Source: Help to Buy |
5% | Eligible first home buyers may be able to buy through the Australian Government 5% Deposit Scheme. | Eligible buyers can purchase with a 5% deposit without paying LMI. Eligibility criteria apply. Source: 5% Deposit Scheme |
10% | A common deposit size for many buyers. | LMI may apply, although this depends on your lender and loan. |
20% | Often considered the standard deposit. | May help you avoid paying LMI and can provide access to a wider range of loan options, depending on your lender. |
It’s about more than your deposit
Your deposit isn't the only thing lenders will look at. They'll also assess your savings history, income, living expenses and existing debts when considering your application.
Some lenders may also accept evidence such as a consistent rental history to help demonstrate your ability to manage repayments.
If you're unsure how much you'll need, an Aussie Broker can explain your options and help you understand which pathways may suit your circumstances.
You might also be interested in: Understanding mortgage affordability beyond borrowing power
Step 2: Get your finances in order
Before applying for a home loan, it's important to understand your financial position.
Lenders look at more than just your income. They'll also consider your existing debts, living expenses, savings, and overall financial commitments to determine how much you may be able to borrow.
Before applying, it's worth reviewing:
Your credit score: A good credit history could help strengthen your application. You can check yours using the Aussie Free Credit Score Tool.
Your existing debts: Credit cards, personal loans and buy now, pay later accounts can affect your borrowing power. Even unused credit card limits may be taken into account.
Your budget: Setting a realistic budget can help you prepare for both the upfront costs of buying and the ongoing costs of owning a home.
Many first home buyers focus on saving a deposit but forget to budget for other expenses.
Cost type | Estimated cost |
|---|---|
Stamp duty | Varies by state and territory |
Conveyancing or legal fees | Approximately $1,000–$1,500 |
Building and pest inspections | Approximately $300–$700 |
Moving and connection costs | Approximately $1,000–$2,500 |
Lenders mortgage insurance (if applicable) | Varies depending on your lender and loan |
These costs can vary depending on where you're buying and your individual circumstances. Building a buffer into your budget can help reduce financial pressure as you move through the buying process.
Step 3: Decide who will buy and how ownership will be structured
Before you begin making offers, it's worth thinking about how you'd like to own your property. The ownership structure you choose can affect your home loan application, your legal rights, and your responsibilities as an owner.
Some of the most common options include:
Buying on your own
Buying as a sole owner means you'll be responsible for the home loan and ongoing property costs, but you'll also have full ownership of the property.
Buying with someone else
Many first home buyers purchase with a partner, family member or friend.
Buying together may increase the amount available to borrow by combining eligible incomes and savings. However, lenders will also assess each applicant’s debts, expenses, credit history and financial commitments.
Other ownership structures
Joint owners may hold property as joint tenants or tenants in common. Purchasing through a trust is a separate legal structure and may affect lending, taxation and eligibility for first-home-buyer assistance.
These options can offer greater flexibility in certain circumstances but may also have legal, tax, and financial implications. It's important to seek independent legal, financial, and taxation advice before deciding which ownership structure is right for you.
Taking the time to decide how you'll buy before applying for a home loan can help make the rest of the process smoother.
You might also be interested in: Joint tenants vs tenants in common, what's the difference?
Step 4: Check if you're eligible for government support
Government support could help reduce the upfront cost of buying your first home, but what's available depends on where you're buying and whether you meet the eligibility criteria.
Depending on your circumstances, you may be eligible for:
Australian Government 5% Deposit Scheme: Eligible first home buyers may be able to purchase with as little as a 5% deposit without paying lenders mortgage insurance (LMI). The Australian Government expanded and renamed the program as the Australian Government 5% Deposit Scheme from 1 October 2025. Income caps have also been removed, and there is no longer a cap on the number of places available.
Help to Buy: Eligible buyers may be able to purchase with a 2% deposit through this shared equity scheme, where the Australian Government contributes an equity share towards the purchase price. Help to Buy commenced in December 2025.
First Home Owner Grant (FHOG): A one-off grant available to eligible buyers, usually for purchasing or building a new home. Eligibility requirements and grant amounts differ between states and territories.
Stamp duty concessions: Depending on where you buy, you may be eligible for a full exemption or concession on transfer duty.
First home buyer grants and stamp duty concessions by state
State / Territory | First Home Owner Grant | Stamp duty concession |
|---|---|---|
Yes, eligible new homes | Full exemption for eligible homes up to $800,000, with a concessional rate available up to $1,000,000. | |
Yes | Full exemption up to $600,000, with a sliding concession available up to $750,000. | |
Yes | Full exemption on eligible established homes up to $700,000, with a concession available up to $800,000. No property value cap applies for eligible new homes or vacant land. | |
Yes | Full exemption up to $600,000, with a concession available up to $800,000. Separate thresholds apply for vacant land. | |
Yes | For eligible contracts entered into on or after 4 June 2026, first-home buyers may receive relief equivalent to the full stamp duty on a new or established home, or vacant land on which a home will be built. Eligibility criteria apply | |
Yes | No current stamp duty concession for established homes. Eligible buyers may still be able to access the First Home Owner Grant for new homes. | |
Yes | Eligible first home buyers pay no stamp duty under the Home Buyer Concession Scheme. From 1 July 2026, income testing and property value caps were removed for eligible buyers who have not owned property in the previous five years. | |
Yes | No general first home buyer stamp duty concession is currently available. However, eligible buyers of qualifying house and land packages may receive a stamp duty exemption under the House and Land Package Exemption. |
Government support programs can change over time, and each has its own eligibility requirements, including residency, property price limits and other criteria.
Before making an offer, it's worth checking the latest requirements or speaking with an Aussie Broker about which options may be available to you.
Note: Information current as of August 2026. Eligibility, amounts and thresholds depend on factors including the contract date, applicant, property type, property value and location, and may change.
Step 5: Meet with an Aussie Broker
Once you've built your savings and explored the support available, it's a good time to speak with an Aussie Broker.
Whether you're buying in six months or six weeks, getting guidance early can help you understand your options and prepare for the next steps.
Aussie first-home buyer Caitlin O'Keefe said speaking to her broker early gave her greater confidence throughout the buying process.
"Initially, we had no idea what we were getting ourselves into until we spoke with her. Vicki was great. We were asking her every question about the property buying experience, and she was super helpful." - Caitlin O'Keefe, Aussie first-home buyer
An Aussie Broker can help you:
understand how much you may be able to borrow
explain government support that may be available, including grants, concessions and eligible low-deposit schemes
compare home loans from over 25 lenders+** and thousands of loan products
explain the costs involved in buying your first home
prepare your application before you seek pre-approval.
An appointment with an Aussie Broker is free^, so you can ask questions and explore your options, with no obligation to make any commitments.
You might also be interested in: What Aussie Brokers are seeing in today's rate environment
Step 6: Get pre-approval
Pre-approval (sometimes called approval in principle) is an indication from a lender of how much you may be able to borrow before you've found a property.
Although it isn't a guarantee that your loan will be approved, it can help you understand your budget and shop with greater confidence.
During the assessment, lenders generally consider your:
income
savings
existing debts
credit history
living expenses
financial commitments.
Pre-approval is commonly valid for between 60 and 90 days, although this varies between lenders.
It could also help you set a property budget and demonstrate that you have started the finance process. It does not guarantee final approval or require a seller to prefer your offer.
Documents you'll usually need
Category | Examples |
|---|---|
Identification | Passport, driver's licence, and Medicare card |
Income | Recent pay slips, tax returns or accountant's statements if you're self-employed |
Bank statements | Evidence of savings and transaction history |
Existing liabilities | Credit cards, personal loans, car loans, HECS/HELP debt and other financial commitments |
Living expenses | Rent, utilities, groceries, transport and other regular household costs |
Dependants | Details of children or other dependants who rely on your income |
Preparation was one of the biggest lessons Caitlin O'Keefe took away from buying her first home.
"You really need to have everything ready when you're putting an offer in. You need to have all your ducks in a row, your finances sorted, and all the paperwork organised." - Caitlin O'Keefe, Aussie first-home buyer.
Your broker can explain what each lender requires, help you prepare your application, and lodge it on your behalf, making the process easier to navigate.
Step 7: Research the market and shortlist homes
With pre-approval in place, you can begin narrowing your property search with a clear understanding of your budget.
As well as attending inspections, it's worth researching the suburb and property before making an offer.
Some useful tools and resources include:
Suburb profiles: Explore recent sales, median prices, demographic trends, and planned infrastructure.
Sold property data: Compare recent sale prices rather than relying solely on advertised prices.
Council information: Check local planning changes, zoning and future developments that could affect the area.
Flood and bushfire maps: Understanding environmental risks may help you make a more informed decision and could affect insurance costs.
Ongoing ownership costs: Compare council rates, strata levies and other ongoing expenses that may differ between suburbs or property types.
Taking the time to research now can help you feel more confident when it's time to make an offer.
You might also be interested in: Why where you buy matter as much as what you earn
Step 8: Do your due diligence
Once you've found a property you'd like to buy, it's time to look beyond the listing photos and inspect what's beneath the surface.
Taking the time to carry out your due diligence before signing a contract can help you avoid unexpected costs and make a more informed decision.
Here's what to check before you commit:
Building and pest inspections
A professional inspection can identify issues such as structural damage, termites, leaks or other defects that may not be obvious during an open home.
Strata report (for apartments and townhouses)
If you're buying into a strata property, review the strata records to understand the financial position of the owners corporation, upcoming maintenance, special levies and any ongoing disputes.
Contract review
Ask a solicitor or conveyancer to review the contract before you sign. They can explain your legal obligations, identify any unusual clauses, and help you understand your cooling-off rights where they apply.
Title and zoning searches
Check for easements, flood or bushfire risks, heritage restrictions and local planning controls that may affect the property now or in the future.
Taking these steps before signing a contract can help you avoid costly surprises later.
Step 9: Make an offer or bid at auction
When you've found the right property, the buying process will differ depending on whether it's being sold by private treaty or auction.
Buying by private sale
If you're buying through a private sale, you'll usually submit a written offer through the selling agent.
If your offer is accepted, you'll sign the contract and typically pay the agreed holding deposit.
In many states and territories, private sales include a cooling-off period, although the rules and timeframes vary. Your solicitor or conveyancer can explain how these apply where you're buying.
Buying at auction
Buying at auction involves a different process.
If you are the successful bidder, you will generally be required to sign the contract and pay the required deposit shortly after the auction. Auction contracts are commonly unconditional, and cooling-off rights generally do not apply, although the rules vary between jurisdictions.
Cooling-off rights may also be restricted for contracts entered into shortly before or after an auction in some areas. Seek legal advice before bidding or signing.
Because the purchase may become unconditional, consider seeking conditional pre-approval, completing your legal and property checks, and understanding that final loan approval and valuation are not guaranteed before bidding.
Property valuation
A lender may require a valuation before providing formal approval. The valuation method and timing vary depending on the lender and property.
If the lender’s valuation is lower than the purchase price, the lender may offer less finance than expected. You may need to contribute additional funds, and renegotiation may not be available, particularly after an unconditional purchase or successful auction bid.
Formal approval
Once your lender has completed its assessment and all conditions have been met, you'll receive formal approval and can move towards settlement.
Tip: Before signing any contract, speak with your solicitor or conveyancer to understand the cooling-off rules that apply in your state or territory.
You might also be interested in: Why more sellers may be choosing private treaty over auction
Step 10: Settlement and move in
Settlement is the final step in the home buying journey. It's the day ownership of the property is officially transferred into your name, and your lender releases the loan funds to complete the purchase.
Before settlement, there are a few final things to organise.
Arrange building insurance
Many lenders require building insurance to be in place before settlement. Check your loan requirements and organise cover early if needed.
Prepare for moving day
Booking removalists, connecting utilities and redirecting your mail ahead of time can help make moving day less stressful.
Update your details
Remember to notify organisations such as your bank, employer, Medicare, the Australian Taxation Office and other service providers once you've moved.
Settlement periods are set by the contract and vary by jurisdiction and transaction, but they commonly occur between 30 and 90 days after contracts are exchanged. Confirm the required cover date with your conveyancer, insurer, and lender.
You don't have to figure it out alone
Buying your first home is about more than finding the right property. There are deposits to save, government support programs to understand, finance to arrange and legal paperwork to complete.
Having the right support can make the process feel much more manageable.
Whether you're just starting to save or you're ready to make an offer, an Aussie Broker can help you navigate the home buying journey, from understanding your borrowing power through to settlement.
Book a free^ appointment with an Aussie Broker today.
