Buying a home: a step-by-step guide

Reviewed by Rama Dwarapudi on 14 October 2026.

Buying a home has a clear order of steps. This guide walks through them in plain language and points to the official place to check the rules in your state or territory.

Work out what you can spend

How much can I afford?

Start with your own money, not the price you would like. Work out what you have saved, what a lender may let you borrow, and what you can keep paying if rates rise.

Add up your savings, and what you can add before you buy.
Ask a lender or a mortgage broker how much you could borrow. A bank's answer is a limit, not a target.
Test the repayments at a higher interest rate than today's, so a rise would not catch you out.
Keep some money aside for costs on top of the price and for emergencies.

Know the costs on top of the price

What else do I have to pay?

The price is not the only cost. Most buyers also pay government charges and fees.

Transfer duty (stamp duty) is paid to your state or territory government. How much depends on the state, the price and who you are.
Legal or conveyancing fees, building and pest inspections, and loan and valuation fees.
Lenders mortgage insurance, if your deposit is small. Ask your lender.
Moving costs, and the first bills for the new home.

Search and shortlist

How do I find the right home?

Look at what sold nearby, not only at what is for sale, so you know what is fair.

Look at recently sold homes in the suburb and on the street, to see what similar homes have sold for.
Read the suburb profile for the area: it shows prices, rents and what the area is like.
Write down what you must have and what you would like, so a good-looking home does not pull you off your plan.

Check the home before you offer

What should I check?

A home can look perfect and still have problems. Check it before you commit, and ask for advice on what you cannot judge yourself.

Go to the inspection, and go again at a different time of day if you can.
Look into local risks such as flooding and bushfire, and any planning applications nearby.
Ask for a building and pest inspection before you are bound to buy. Where you buy at auction you may be bound at the fall of the hammer, so do your checks first.
Read the contract and the other documents with a solicitor or conveyancer before you sign.

Make an offer or bid at auction

How do I buy it?

How you buy depends on how it is for sale. Ask the agent how the sale will work before you decide.

For a private sale, you make an offer, and the seller can accept it, refuse it or counter it.
For an auction, you register to bid and set a limit before the day. Stay below it.
Cooling-off rights depend on your state and on how you bought. Ask your solicitor or conveyancer what applies to you.

From contract to settlement

What happens after I say yes?

After you sign, there is a period where your loan is finalised, checks are made and the money changes hands.

Your lender values the home and approves the loan, and you pay the deposit.
Your solicitor or conveyancer does the searches and prepares the transfer.
On settlement day the money is paid and the home becomes yours. Arrange insurance before then.
Do a final check of the home shortly before settlement.

This is general information, not financial, legal or tax advice. Rules, fees and rates differ by state and territory and change often. Check the official source for your state, and speak to a licensed professional before you decide.

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