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First home buyers: the steps from budget to settlement

Buying your first home has a lot of steps, and the help available to first home buyers differs by state and changes often. This page puts the steps in order, shows what each one involves, and links to the RealSearch pages and official government sites that help with it.

Getting started

What happens first, and in what order?

Most first home buyers go through the same six steps. Doing them in this order helps you avoid falling in love with a home you cannot buy.

  1. Work out what you can spend: your savings, your income, your debts and your everyday living costs.
  2. Check which government help may apply to you, from the Australian Government and from your state or territory.
  3. Talk to a lender or a mortgage broker about how much you may be able to borrow, and ask about pre-approval.
  4. Search for homes in your price range and in the suburbs that suit you.
  5. Inspect the home, and check the contract and the risks, before you make an offer.
  6. Make an offer or bid at auction, then arrange your loan, the legal work and settlement.

Deposit & budget

How much cash do I need?

Your deposit is the part of the price you pay yourself. How much you need depends on the lender, the loan and any government scheme you use.

  • Lenders set their own minimum deposit. A smaller deposit can mean extra costs, such as lenders mortgage insurance, so ask what a smaller deposit would cost you overall.
  • Keep money aside for the costs that come on top of the deposit (see Buying costs below).
  • Test your loan repayments at a higher interest rate than today's, so you know you could still manage them if rates rise.

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Grants & schemes

What assistance might apply in my state?

Help for first home buyers comes from two places: the Australian Government and your state or territory government.

  • Help can include a grant, a lower or no transfer (stamp) duty, and schemes that reduce the deposit you need.
  • What you can get depends on things such as whether the home is new or established, its price, where it is, and your own circumstances. Some grants are only for new homes, so find out before you start searching.
  • The rules and the names of schemes change often. Use the official source for your state or territory, listed below, and do not rely on an older article or on a friend's experience.

Australian Government

Your state or territory

Official links last checked on . We do not show grant amounts, price limits or dates on this page, because they differ between states and change often. The official sources listed above always have the current ones.

Buying costs

What will I pay beyond the deposit?

The deposit is not the only cost. Plan for these as well.

  • Transfer duty (stamp duty), paid to your state or territory government. Many first home buyers pay less, or none, but it depends on the state and the home.
  • Legal or conveyancing fees.
  • Building and pest inspections, and any other reports you decide to order.
  • Loan costs such as application, valuation and settlement fees. Ask your lender for the full list.
  • Home insurance, and the cost of moving.
  • If you buy an apartment or a townhouse in a strata scheme, the ongoing strata levies.

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Finding a home

Which locations and properties fit?

Start with your budget, then look at the suburb as well as the home.

  • Decide which things you must have and which you would like, and search for the must-haves first.
  • Compare suburbs by what homes sold for, how long the trip to work would be, and what is nearby.
  • Newly built homes can qualify for help that established homes do not, so look at them too.

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Inspections & checks

What should I investigate before offering?

Checking before you offer costs far less than finding a problem after you own the home.

  • Order a building and pest inspection, and read the report before you sign anything.
  • Have a solicitor or conveyancer read the contract and explain it to you before you sign.
  • For an apartment or a townhouse in a strata scheme, ask for the strata records and read them.
  • Check the title, and check local risks such as flooding, bushfire and planning rules, with your local council and your state government.
  • Compare the asking price with recent sales of similar homes nearby.

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Offers to settlement

What happens after I find a property?

After you find a home, these are the stages. How long each takes, and when you can still pull out, differ by state and by how the home is sold.

  • Offer: in a private sale you agree a price with the seller, and at an auction you bid on the day. Know your limit before you start.
  • Contract: your solicitor or conveyancer checks the contract before you sign and exchange.
  • Finance: your lender values the property and gives final approval. Avoid big changes to your finances until settlement.
  • Before settlement: arrange insurance, do a final inspection, and organise your utilities and your move.
  • Settlement: ownership is transferred to you, your lender pays the seller, and you receive the keys.

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This is general information, not financial, legal or tax advice. Check the rules with the official source for your state or territory and with a licensed professional before you decide.

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