Key Takeaways:
Most first-home buyers take around six to nine months from starting their search to settlement, although the process may be shorter or longer depending on their finances, the property market and the type of home they buy.
Getting pre-approval early may help you understand your borrowing power before you start house hunting, making it easier to act when you find a suitable property.
The Australian Government 5% Deposit Scheme and Help to Buy may help eligible buyers purchase sooner, but they work differently and cannot be used together.
Preparation matters. Having your documents, deposit and finances organised may help reduce delays during the home loan approval process.
Buying your first home is rarely something that happens overnight. Between saving a deposit, securing finance, searching for the right property and reaching settlement, the process often takes several months.
For most Australians, buying a first home takes around six to nine months from beginning the purchasing process through to settlement. However, some buyers who already have a deposit saved and finance organised may complete the process in as little as two to three months, while others may take a year or longer depending on their circumstances, the property market and how quickly they find a suitable home.
Knowing what typically happens at each stage can help you plan ahead, avoid unnecessary delays and feel more confident throughout the journey.
Here's what a typical first-home buying timeline may look like.
Every buyer's journey is different. Think of this timeline as a general guide rather than a fixed schedule, as some stages may happen more quickly while others can take longer depending on your circumstances.
Month 1: Get financially ready
Before attending inspections or browsing listings, it's worth understanding what you may be able to afford.
A lender will generally assess more than just your income. They'll also consider factors such as:
your deposit
living expenses
existing debts
employment history
the lender's own assessment criteria.
Having a realistic budget from the outset may help narrow your property search and reduce the risk of falling in love with a home that's outside your borrowing capacity.
You might also be interested in: How far over budget is too far when it comes to buying a home?
Documents you'll usually need
Getting your paperwork together early may help speed up your application later.
Most lenders will ask for documents such as:
proof of identity
recent payslips
tax returns (if self-employed)
bank statements
evidence of savings
details of existing loans or credit cards
information about any other assets or liabilities.
An Aussie Broker can help you understand your borrowing power, explain what documentation may be required and compare lenders based on your circumstances.
Month 2: Explore first-home buyer assistance
Once you understand your budget, it's worth checking whether you're eligible for any government assistance.
Depending on your circumstances, this could reduce the amount you need upfront or make purchasing a home possible sooner.
You might also be interested in: What first-home buyer grants and concessions are available in Australia?
Australian Government 5% Deposit Scheme
One of the most significant changes for first-home buyers in recent years was the expansion and rebrand of the former Home Guarantee Scheme.
The Australian Government 5% Deposit Scheme allows eligible buyers to purchase a home with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI), because the Australian Government guarantees part of the loan to participating lenders. Eligible single parents and legal guardians may be able to purchase with as little as a 2% deposit. Key features include:
minimum 5% deposit for eligible first-home buyers
minimum 2% deposit for eligible single parents or legal guardians
no income caps
no annual limit on places
available for new and existing homes, subject to property price caps
owner-occupier requirements apply.
It's important to remember that while the Scheme may reduce your upfront costs, you'll still need to meet a participating lender's lending criteria and demonstrate you can comfortably manage your repayments.
Current Australian Government 5% Deposit Scheme property price caps
State/Territory | Capital city and regional centre* | Rest of state |
|---|---|---|
NSW | $1,500,000 | $800,000 |
VIC | $950,000 | $650,000 |
QLD | $1,000,000 | $700,000 |
WA | $850,000 | $600,000 |
SA | $900,000 | $500,000 |
TAS | $700,000 | $550,000 |
ACT | $1,000,000 | N/A |
NT** | Darwin: $750,000 | Rest of NT: $600,000 |
Jervis Bay Territory & Norfolk Island | $550,000 | $550,000 |
Christmas Island & Cocos (Keeling) Islands | $400,000 | $400,000 |
Source: Australian Government, First Home Buyers
Property price caps vary depending on the location of the property. Buyers should confirm the applicable cap with their participating lender before making an offer.
Help to Buy: How is it different?
Another option some buyers may be considering is Help to Buy, which commenced in late 2025.
Although both initiatives are designed to help eligible Australians purchase a home sooner, they work in different ways.
Australian Government 5% Deposit Scheme | Help to Buy |
|---|---|
Minimum 5% deposit (2% for eligible single parents/legal guardians) | Minimum 2% deposit |
Government guarantees part of the loan | Government contributes an equity share in the property |
No income caps | Income caps apply |
No annual place limits | Eligibility and availability apply |
No government ownership of your home | Government owns an equity stake that is repaid when required under the scheme rules |
As of 1 July 2026, Help to Buy income limits are $103,000 for individuals and $165,000 for joint applicants or single parents, indexed annually. Importantly, buyers cannot combine Help to Buy with the Australian Government 5% Deposit Scheme.
If you're unsure which option, if any, may suit your circumstances, speaking with an Aussie Broker before applying can help you understand how each scheme works and whether you may be eligible.
First home buyer grants and concessions by state
First home buyer support can also vary depending on where you're purchasing. Learn more about the grants, concessions and schemes that may be available in your state or territory:
Month 3: Apply for home loan pre-approval
With your budget established and any government assistance explored, many buyers choose to apply for home loan pre-approval before seriously searching for a property.
Pre-approval is an indication from a lender of how much they may be willing to lend, subject to conditions, including the property you eventually purchase and any changes to your financial circumstances.
While pre-approval doesn't guarantee your loan will be approved, it may provide greater confidence when making offers and can help demonstrate to sellers that you're a genuine buyer.
Having pre-approval may also help you:
understand your maximum borrowing capacity
focus on homes within your budget
act more quickly when you find a suitable property
avoid delays once your offer is accepted.
Keep in mind that pre-approvals generally have an expiry period, often around three months, although this varies between lenders.
An Aussie Broker can compare lenders, explain the differences between pre-approval policies and help you understand what may be achievable based on your circumstances.
You might also be interested in: 6 ways to make the most of home loan pre-approval
Month 4: Start searching for a property
Once you've received pre-approval, you can begin seriously looking for your first home.
How long this stage takes varies considerably. Some buyers find a suitable property within a few weeks, while others spend several months comparing suburbs, attending inspections and refining their wish list.
The time it takes often depends on:
your budget and how flexible it is
supply and demand in your preferred area
how quickly you're prepared to make an offer.
While it's natural to focus on finding your dream home, it's also important to think about the ongoing costs of ownership. These may include council rates, strata fees, insurance, maintenance and potential changes in interest rates over the life of your loan.
Auction or private treaty?
The buying process can also differ depending on how the property is being sold.
Private treaty
You can usually negotiate the purchase price and contract terms.
Finance and building inspection clauses are often included, depending on negotiations.
Settlement periods may be more flexible.
Auction
Because auction purchases are commonly unconditional, buyers should consider obtaining conditional pre-approval and completing their legal and property checks before bidding.
Successful bids are usually unconditional, meaning there is typically no cooling-off period or finance clause (subject to state and territory legislation).
You'll usually pay the deposit immediately after the auction if you're the successful bidder.
You might also be interested in: How to win your next home at auction
Understanding these differences before you begin searching may help you avoid costly surprises.
An Aussie Broker can help you understand how different purchasing methods may affect your finance timeline and what you'll need before making an offer or bidding at auction.
Month 5: Make an offer and apply for formal loan approval
Once you've found the right property, the next step is making an offer or, if you're buying at auction, bidding.
If your offer is accepted, your lender will move from pre-approval to assessing your full home loan application.
This stage commonly includes:
submitting the signed contract of sale
confirming your financial information
ordering a property valuation
reviewing any outstanding documents
issuing formal approval if all requirements are met.
One of the most important parts of this process is the lender's valuation.
A valuation helps the lender confirm the property's market value. If the valuation comes in lower than the agreed purchase price, you may need to contribute a larger deposit or renegotiate with the seller. If you're buying under an unconditional contract, such as after a successful auction, renegotiation may not be possible.
This is one reason buyers should avoid making major financial changes after receiving pre-approval.
Until settlement, it's generally wise to avoid:
changing jobs without discussing it with your lender
taking out new personal loans
financing a new car
applying for additional credit cards
making large unexplained purchases.
These changes may affect your borrowing capacity or require your application to be reassessed.
If unexpected issues arise during formal approval, an Aussie Broker can work with your lender and help explore alternative options where appropriate.
Month 6: Prepare for settlement
Once your loan is formally approved, your solicitor or conveyancer, lender and the seller's representatives work together to prepare for settlement.
During this period they'll typically:
complete legal and title checks
arrange loan documentation
calculate settlement adjustments
organise transfer of funds
prepare the property for legal ownership transfer.
You'll also need to:
sign your loan documents
organise building insurance where required
arrange utilities
complete a final inspection before settlement.
How long does settlement take?
Settlement commonly takes place between 30 to 90 days after contracts are exchanged, although the exact timeframe is negotiated between the buyer and seller and can vary depending on the contract, lender processing times and the state or territory.
For example, in New South Wales, settlement typically occurs around six weeks (42 days) after contracts are exchanged, although buyers and sellers can negotiate a shorter or longer period.
In other states and territories, settlement periods also vary and may be shorter or longer depending on local market practice, the type of property being purchased and what is agreed in the contract of sale.
Your broker can keep you updated throughout settlement and work with your lender if additional information is required before funds are released.
Month 7: Settlement and moving in
Settlement day is when ownership of the property officially transfers to you.
Your lender provides the loan funds, your legal representative completes the transaction and, once settlement has occurred, you'll receive confirmation that the property is yours.
After settlement you'll usually:
collect the keys
move into your new home
begin making your home loan repayments
update your address with relevant organisations.
Congratulations, you're officially a homeowner.
What can slow the process down?
While many first-home buyers follow a relatively smooth timeline, unexpected delays can happen at almost any stage.
You might also be interested in: Three in 10 first-home buyers are buying with a 5% depsit. Here’s what happened next.
Some of the most common reasons include:
Saving a deposit takes longer than expected
For many buyers, saving enough for a deposit is the longest part of the journey. Rising property prices, living costs and unexpected expenses may mean it takes longer to reach your savings goal.
Government assistance schemes may help eligible buyers purchase sooner, but you'll still need enough savings to cover your deposit and upfront costs.
Property valuations come in below the purchase price
If the lender values the property below the agreed purchase price, you may need to contribute more funds or renegotiate the contract.
Changes to your financial circumstances
Changing jobs, reducing your income or taking on additional debt while your loan application is being assessed may delay approval or affect how much you can borrow.
Finding the right property
Even in markets with more listings, finding a home that suits your budget, lifestyle and long-term goals can take time.
It's often worth being patient rather than rushing into a purchase that doesn't meet your needs.
Auction purchases require faster decisions
If you're buying at auction, you'll generally need your finance organised before bidding because successful purchases are usually unconditional.
This can shorten the timeline between finding a property and committing to the purchase.
The bottom line
Buying your first home is a series of important decisions rather than a single event.
Understanding each stage, preparing your finances early and knowing what to expect may help make the process less overwhelming and reduce unnecessary delays.
Whether you're just beginning to save, comparing government assistance schemes or ready to apply for pre-approval, taking the time to understand your options can help you make more informed decisions.
An Aussie Broker can help you understand your borrowing power, explain which government initiatives you may be eligible for, compare lenders and guide you through each stage of the home buying journey based on your individual circumstances.
