Buying your first home? Exciting! Overwhelming? Also yes. But don’t stress – we’ve got you. Let’s break it down into eight simple steps so you can go from “just browsing” to homeowner status with confidence.
STEP 1: Check Your Finances – Aka, Know Your Money
Before diving into real estate listings, take stock of your finances:
- Savings & Budgeting: Work out how much you can comfortably put towards a deposit. While 20% is ideal (albeit unrealistic for most FHB’s) there are lower deposit options available.
- Credit Score Check: Your credit score affects how much you can borrow and what kind of interest rates you’ll get. A higher score = better loan terms. Call us on 02 6188 4555 if you’d like us to run a credit report on you. We can do these for you FOR FREE (*said like Rebel Wilson from the movie Bridesmaids).
STEP 2: Look Into First-Home Buyer Perks
Good news! Australia has government schemes to give first-home buyers a leg up:
- First Home Owner Grant (FHOG): Free money? Yes, please! Amounts and eligibility vary by state.
- Stamp Duty Concessions: Some states offer discounts or even waive stamp duty for first-home buyers.
- First Home Guarantee Scheme: Get in with as little as 5% deposit and skip Lenders Mortgage Insurance (LMI) (a big win).
- Family Home guarantee Scheme: Similar to the First home Guarantee scheme above, but buy with only 2% (no LMI)
- Help To Buy Scheme: Eligible buyers can purchase a home with a minimum 2% deposit, with the government contributing a significant equity share, reducing the loan amount and ongoing repayments.
STEP 3: Get Pre-Approved for a Loan
Before you start scrolling property listings at midnight (we all do it), get pre-approved. This:
- Gives you a clear idea of your borrowing power
- Shows sellers you’re serious about buying
- Helps you shop smarter within your budget
Tip: Chat with a mortgage broker (hey, that’s us!) to compare loan options and find the right deal for your situation.
STEP 4: Start House Hunting
Now the fun part! Finding the one (house, not partner – though a good one helps pay the mortgage).
- Research suburbs – What’s the market like? What amenities matter to you?
- Go to open homes – Pictures lie. Check properties in person.
- Building & pest inspections – Avoid nasty surprises later (like hidden termites or dodgy plumbing).
STEP 5: Make an Offer
Found the one? (Neo… The Oracle told me that I would fall in love and that that man… the man that I loved would be The One…)
Time to lock it down:
- Negotiate – Don’t be afraid to haggle. Even a few thousand off can make a big difference. That said, read the room. I.e. if the market is crazy hot and there’s 43 people making an offer on the same property, maybe put your best offer forward for the highest chance of having your offer accepted. If the market is more stagnant, you have more freedom to negotiate.
- Contract of Sale – Get a solicitor or conveyancer to review everything before signing. If you need a recommendation, give us a call on 02 6188 4555, we’d be happy to help.
STEP 6: Get Your Home Loan Finalised
Once your offer is accepted:
- Submit all required documents for formal approval
- Sort out insurance – You’ll need home insurance before settlement (yes, even before moving in).
STEP 7: Settlement – The Final Countdown
This is where all the paperwork gets finalised, and ownership of the property officially transfers to you.
- Settlement period is usually 30-90 days (from the day your offer is accepted)
- Stamp duty time! Unless you qualify for concessions, you’ll need to factor this into your budget
STEP 8: Move In – YOU’RE A HOMEOWNER!
Pop the champagne – you did it! Keys in hand, mortgage in place, your name on the title. Now it’s time to:
- Make it feel like home
- Paint a wall or two (or don’t, up to you)
- Happy dance in your empty living room
Ready to Get Started?
Buying your first home is a big deal—but you don’t have to figure it out alone. Call us on 02 6188 4555 or book a free consultation, and let’s make this happen.
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