The Ultimate First Home Buyer Guide
Purchasing your first home is one of life's most significant milestones. This comprehensive guide breaks down everything you need to know, from understanding your borrowing capacity to holding the keys to your first property.
Step 1: Assess Your Financial Position
Honest financial assessment is crucial before looking at properties.
Calculate Your Borrowing Power: Most lenders allow borrowing 5-6 times your gross annual income. A household earning $100,000 might borrow $500,000-$600,000.
Check Your Credit Score: Obtain your credit report from Equifax, Experian, and illion. If your score is below 600, work on improving it before applying.
Step 2: Save Your Deposit
- 5% Deposit: Minimum for some schemes, requires LMI ($10,000-$30,000)
- 20% Deposit: No LMI required, access to best rates
Budget for extra 5-7% of purchase price for stamp duty, conveyancing, inspections, and fees.
Government Schemes:
Step 3: Get Pre-Approval
Pre-approval confirms your borrowing capacity and shows sellers you are serious. Process typically takes 3-5 business days.
Step 4: House Hunting
Research suburbs for commute, schools, amenities, and transport. Attend open homes, monitor auction clearance rates, and build relationships with local agents.
Step 5: Making an Offer
Private Treaty: Make an initial offer, negotiate, and include conditions for inspections and finance.
Auction: Review contract beforehand, set a maximum bid, and stick to it. No cooling-off period applies.
NEVER skip building and pest inspections — they cost $300-$600 but can save you from disaster.
Step 6: Finalize Your Loan
Convert pre-approval to formal approval by submitting full application with property details. Process takes 7-14 business days.
Step 7: Settlement
Your conveyancer handles all paperwork. On settlement day, funds are released, ownership transfers, and you receive your keys. Welcome to homeownership!