5 Steps to Buy Your First Home

Tired of renting or living at home with parents? If you have been setting money aside and are ready to become a homeowner, there are essential steps to take before finding a property.

**Step 1: Plan**

The first big step is to set clear goals and plan for the purchase. Create a budget to determine realistic monthly mortgage repayments. Consider future expenses as well, such as starting a family. Where possible, saving a deposit of 20% of the purchase price is ideal; however, options may be available with a 5–10% deposit, or occasionally less. The larger the deposit, the lower the required loan amount, which can reduce lender's mortgage insurance and secure more competitive interest rates. Only borrow an amount that remains comfortable to repay each month.

**Step 2: Speak with a mortgage broker (or your bank)**

This step is crucial, as it can be the difference between success and disappointment during a property search. What a buyer feels comfortable spending and what a lender is willing to offer do not always align. Speaking with a professional helps clarify borrowing capacity and identify suitable lenders. This is also a good time to explore pre-approval to gain confidence when making an offer on a home.

To apply for pre-approval, evidence of income, monthly expenses, and assets (such as properties, vehicles, investments, and bank accounts) will be required.

**Step 3: Find your future home**

This is an exciting stage of the process. Drive around preferred areas to check for sale signs and inspect properties. Real estate agents operating in target suburbs usually have strong market knowledge and recent sales data, making them a helpful resource for identifying additional listings.

Whether a property is found independently or through an agent, always arrange an inspection by a qualified building, timber, and pest inspector to uncover any hidden hazards or structural issues.

**Step 4: Formal loan approval**

Once a suitable property is selected, the lender orders a property valuation. Ensuring the purchase price aligns with current market value helps avoid valuation shortfalls.

First-time buyers may qualify for the First Home Owner Grant or state-based stamp duty concessions. Eligible buyers should verify their eligibility to take advantage of these incentives.

**Step 5: Settle on your first home!**

Reaching this final step means a property has been secured and loan approval confirmed. All that remains is waiting for property settlement and ownership transfer. Settlement agents or conveyancers, real estate agents, and mortgage brokers guide buyers through this stage to ensure contracts are verified and paperwork is processed smoothly.

On settlement day, once all legal documents are completed and funds are transferred, keys are collected and the move can begin.