Buying your first home is an exciting step, but it can be overwhelming without the right information. From budgeting to searching, applying for finance, and understanding legal steps, here’s a practical guide for first-home buyers covering affordability, deposits, government incentives, the buying process, and commonly asked questions.

Affordability & Finance

How much can I afford to spend on a property?

This depends on your income, expenses, debts, and savings. A good rule is to keep mortgage repayments under 30% of your gross monthly income. Use a home loan calculator or speak with a broker to determine your borrowing capacity.

How much deposit do I need?

Most lenders require a 10% to 20% deposit. Some offer loans with just a 5% deposit, especially under government schemes, but this may require Lenders Mortgage Insurance (LMI). No-deposit loans are rare and often require a guarantor.

What’s the difference between pre-approval and full approval?

• Pre-approval is a conditional estimate of what you can borrow, based on basic financial info.
  
  
• Full approval is granted once the lender has verified your documents, the property valuation, and other checks.
  
  

Can I buy with a low deposit or no deposit?

Yes—through government support like the First Home Guarantee Scheme, you may qualify to buy with as little as 5% deposit and no LMI. Some buyers also use family guarantors.

What government grants or incentives am I eligible for?

• First Home Owner Grant (FHOG) for new builds or newly constructed homes
  
  
• Stamp Duty Concessions or Exemptions based on your purchase price and location
  
  
• First Home Guarantee with low deposit support
  
  
• HomeBuilder Grant (when available) for building or renovating
  
  

What is stamp duty and how much will I pay?

Stamp duty is a government tax on property transactions. The amount varies by state or region, property price, and whether you’re a first-home buyer. Some states offer full or partial waivers.

Property Search

What is the best suburb or area to buy in?

Look for areas with strong growth potential, access to transport, amenities, and employment. Consider lifestyle needs and budget. Use suburb research tools and talk to local agents.

Should I buy a home or keep renting?

If you’re financially stable, buying can offer long-term security and equity. Renting may be better short-term if flexibility or affordability is a concern.

Is now a good time to buy property?

This depends on market conditions, interest rates, and your personal financial situation. Speak to a financial advisor for tailored advice.

What should I look for during a property inspection?

Check for signs of structural damage, moisture, plumbing, roof condition, electrical safety, and overall upkeep. Hire a professional building inspector if unsure.

What’s a strata property and what should I be aware of?

Strata properties (e.g., apartments, townhouses) share ownership of common areas. Be aware of body corporate fees, by-laws, and upcoming repairs or levies.

Buying Process & Settlement

How do I make an offer?

Offers can be made verbally or in writing through the agent. Your solicitor can guide you through the formal offer process.

How much should I offer below the asking price?

This depends on market demand, property condition, and time on the market. A buyer’s agent or local research can help guide your offer.

What’s the difference between private treaty, auction, and expression of interest?

• Private treaty: Negotiation-based sale
  
  
• Auction: Bidding in public with no cooling-off period
  
  
• Expression of interest: Written offers by a set deadline
  
  

What does a conveyancer or solicitor do?

They handle the legal side of property transfer, review contracts, conduct title searches, and coordinate with your lender until settlement.

What happens once my offer is accepted?

You’ll pay a deposit, sign the contract, and your solicitor begins the conveyancing process. Your lender will also begin final approval and valuation.

How long does settlement take?

Usually 30 to 90 days, depending on the contract and finance approval.

What’s included in the contract of sale?

Details about the property, price, settlement date, included fixtures, special conditions, and legal terms.

Do I need insurance before settlement?

Yes, it’s strongly recommended to get building insurance from the date you sign the contract, as you may be liable for damages.

What happens on settlement day?

Your legal and financial teams finalize the payment, transfer ownership, and lodge documents. Once complete, you legally own the property.

When do I get the keys?

Usually, you’ll receive the keys on the same day as settlement, once all documents and payments are confirmed.

Final Thought

Becoming a first-home buyer is a big achievement. By understanding your finances, researching your options, and using the support available, you can confidently step into the property market. From budgeting to settlement day, knowledge is your best tool.