How much deposit do I need as a first home buyer in Australia?

Most lenders require at least 5-20% deposit. With government schemes like the First Home Guarantee, you may be able to buy with as little as 5% deposit.

How long does the home buying process take?

From pre-approval to settlement typically takes 6-12 weeks, though this can vary depending on property type, finance approval, and inspections.

What costs should I budget for beyond the deposit?

Budget for stamp duty, legal fees, building inspections, loan establishment fees, and moving costs. These can add 3-5% to your property purchase price.

Should I get pre-approval before looking at properties?

Yes, pre-approval shows you're a serious buyer and helps you understand your budget. It can also speed up the purchase process when you find the right property.

Complete First Home Buyer Checklist Australia 2025: Step-by-Step Guide

Buying your first home is one of life's biggest milestones, but it can feel overwhelming with so many steps involved. This detailed checklist breaks down everything you need to do, from the initial planning stages through to settlement day. Whether you're just starting to save or ready to make an offer, this guide will keep you on track.

Phase 1: Financial Preparation (3-6 months before buying)

1. Assess Your Financial Situation

Complete Financial Health Check:

☐ Check your credit score (aim for 700+)
☐ Calculate your current debt-to-income ratio
☐ Review 3-6 months of bank statements
☐ Gather proof of income (payslips, tax returns)
☐ List all assets and liabilities

2. Set Your Budget and Savings Goals

Budget Planning Checklist:

☐ Determine maximum borrowing capacity
☐ Set realistic property price range
☐ Calculate required deposit (5-20% of property value)
☐ Budget for additional costs (stamp duty, legal fees, inspections)
☐ Plan for emergency fund (3-6 months expenses)

💰 Money-Saving Tip:

Research first home buyer grants and schemes in your state. You could save thousands with government assistance programs like the First Home Guarantee, stamp duty exemptions, and state-based grants. Read our comprehensive guide to first home buyer grants for detailed state-by-state information.

3. Improve Your Borrowing Position

☐ Pay down existing debt: Reduce credit card balances and personal loans
☐ Avoid new debt: Don't take on new credit cards or loans
☐ Increase your deposit: Every extra dollar saved improves your borrowing power
☐ Consider the First Home Super Saver Scheme: Use super to save for your deposit

Phase 2: Pre-Approval and Property Search (1-2 months)

4. Get Pre-Approved for a Home Loan

Pre-Approval Checklist:

☐ Compare loan products from multiple lenders
☐ Consider using a mortgage broker for expert advice
☐ Submit formal pre-approval application
☐ Provide all required documentation
☐ Understand loan terms and conditions (including credit score requirements)

5. Start Property Hunting

☐ Define your criteria: Location, property type, bedrooms, key features
☐ Research neighborhoods: Schools, transport, amenities, future development
☐ Attend open inspections: Get a feel for the market and property values
☐ Take photos and notes: Create a comparison system for properties
☐ Build relationships: Connect with local real estate agents

Phase 3: Making an Offer (2-4 weeks)

6. Found the Perfect Property?

Before Making an Offer:

☐ Research comparable sales in the area
☐ Get a building and pest inspection quote
☐ Check council records for any issues
☐ Consider the neighborhood at different times
☐ Factor in any renovation or repair costs

7. Make Your Offer

☐ Determine your maximum price: Stick to your budget
☐ Include appropriate conditions: Finance, building inspection, pest inspection
☐ Set reasonable timeframes: Usually 10-14 days for conditions
☐ Review contract carefully: Get legal advice if needed

Phase 4: Due Diligence (7-14 days)

8. Complete Property Inspections

🔍 Critical Inspections:

☐ Building inspection (structural issues, defects)
☐ Pest inspection (termites, other pests)
☐ Strata inspection (for apartments/townhouses)
☐ Pool and spa inspection (if applicable)

9. Finalize Your Finance

☐ Submit formal loan application: Include signed purchase contract
☐ Arrange property valuation: Lender will organize this
☐ Provide any additional documentation: Respond quickly to lender requests
☐ Arrange loan insurance: If required by your lender

Phase 5: Pre-Settlement (2-4 weeks)

10. Legal and Administrative Tasks

Legal Checklist:

☐ Engage a solicitor or conveyancer
☐ Review contract of sale thoroughly
☐ Organize property title search
☐ Calculate and pay stamp duty
☐ Arrange settlement date

11. Insurance and Utilities

☐ Home insurance: Must be active from settlement date
☐ Life insurance: Consider income protection and life cover
☐ Utilities connections: Electricity, gas, water, internet
☐ Council rates: Understand your ongoing obligations

Phase 6: Settlement Day

12. Final Preparations

Settlement Day Checklist:

☐ Final property inspection (day before or morning of settlement)
☐ Ensure all loan funds are available
☐ Bring certified bank cheque for any additional funds
☐ Confirm settlement time and location
☐ Collect keys from real estate agent

Phase 7: Post-Settlement

13. Moving In

☐ Change address: Banks, employer, ATO, Medicare, Centrelink
☐ Update voter registration: Australian Electoral Commission
☐ Security: Consider changing locks
☐ Meet your neighbors: Build community connections
☐ Plan maintenance: Create a home maintenance schedule

Common First Home Buyer Mistakes to Avoid

✗ Not getting pre-approved: You might miss out on properties or make unrealistic offers
✗ Skipping inspections: Could cost you thousands in unexpected repairs
✗ Borrowing to your maximum: Leaves no buffer for emergencies or rate rises
✗ Forgetting additional costs: Stamp duty, legal fees, and moving costs add up
✗ Buying in the wrong location: Consider future resale value and lifestyle needs

Key Takeaways

• Start early: The process typically takes 3-6 months from start to finish
• Budget wisely: Factor in all costs, not just the deposit
• Get professional help: Use mortgage brokers, solicitors, and inspectors
• Stay organized: Keep documents in order and meet all deadlines
• Take your time: Don't rush into the biggest purchase of your life