Must-Do Steps Every First Home Buyer Should Know
Buying your first home is an exciting milestone, but it can also feel overwhelming if you don’t know what to expect. To make the process smoother and safer, here are the must-do steps every first home buyer should follow.
Must-Do Steps Every First Home Buyer Should Know
Buying your first home is an exciting milestone, but it can also feel overwhelming if you don’t know what to expect. To make the process smoother and safer, here are the must-do steps every first home buyer should follow.
Your Essential First Home Buyer Checklist
1. Get Loan Pre-Approval
Before you start house hunting, speak to a mortgage broker and get your loan pre-approval in
place.
Computer-generated estimate using recent sales, market trends, and property data.
Fastest and most cost-effective option.
Common for standard metro properties and low-risk loans.
2. Desktop Valuation
Always get the Contract of Sale reviewed by a conveyancer or solicitor before you sign.
This ensures you understand all terms, inclusions, and conditions.
Your legal advisor can flag risks that might cause trouble later.
3. Secure a Cooling-Off Period
A cooling-off period allows you to walk away if your checks don’t stack up. During this time, you
should:
Arrange building and pest inspections.
Complete a valuation.
Obtain formal loan approval.
⚠️ Note: If you buy at auction, there is no cooling-off period. Once you bid and win, you’re locked
in.
4. Do All Necessary Inspections
Don’t skip the checks—repairs and issues can be costly later.
Building inspection: to identify structural issues.
Pest inspection: to spot hidden infestations.
Valuation: to ensure the property meets lender requirements.
5. Confirm Lender Acceptance
Not every property is acceptable to every lender.
Check with your mortgage broker before making an offer.
Some lenders avoid certain property types, locations, or titles.
6. Prepare for Auctions (If Applicable)
If you’re buying at auction, remember:
You must have loan pre-approval.
Get your solicitor/conveyancer to review the contract beforehand.
Negotiate any changes (like settlement period or deposit amount) well in advance.
Once you win, you are legally bound—even if the contract isn’t signed yet.
7. Work with the Right Professionals
Surround yourself with experts who protect your interests:
Mortgage broker – guides borrowing capacity and lender policies.
Conveyancer/Solicitor – ensures the contract is sound.
Building & pest inspectors – safeguard against hidden issues.
Optional: Buyer’s agent or accountant – for strategy, tax, or investment planning.
8. Know the Grants and Schemes
First home buyers in Australia may be eligible for:
Federal schemes: First Home Buyer Guarantee, Family Home Guarantee, Regional First Home
Buyer Guarantee.
State schemes: First Home Buyer grants, stamp duty exemptions, and land tax concessions.
These can make a big difference to your deposit and upfront costs.
9. Stay Financially Ready
Keep your credit record clean.
Save for your deposit and extra costs (like inspections, solicitor fees, or moving).
Be aware of LMI (Lenders Mortgage Insurance) if your deposit is below 20%.
Final Thought
Your first home journey will be smoother if you:
Get pre-approval,
Review contracts,
Secure a cooling-off period (or prepare thoroughly for auctions),
Complete inspections, and
Work with trusted professionals.
Following these must-do steps helps you avoid costly mistakes and sets you up for a confident first
home purchase.
Your Essential First Home Buyer Checklist
1. Get Loan Pre-Approval
Before you start house hunting, speak to a mortgage broker and get your loan pre-approval in
place.
Computer-generated estimate using recent sales, market trends, and property data.
Fastest and most cost-effective option.
Common for standard metro properties and low-risk loans.
2. Desktop Valuation
Always get the Contract of Sale reviewed by a conveyancer or solicitor before you sign.
This ensures you understand all terms, inclusions, and conditions.
Your legal advisor can flag risks that might cause trouble later.
3. Secure a Cooling-Off Period
A cooling-off period allows you to walk away if your checks don’t stack up. During this time, you
should:
Arrange building and pest inspections.
Complete a valuation.
Obtain formal loan approval.
⚠️ Note: If you buy at auction, there is no cooling-off period. Once you bid and win, you’re locked in.
4. Do All Necessary Inspections
Don’t skip the checks—repairs and issues can be costly later.
Building inspection: to identify structural issues.
Pest inspection: to spot hidden infestations.
Valuation: to ensure the property meets lender requirements.
5. Confirm Lender Acceptance
Not every property is acceptable to every lender.
Check with your mortgage broker before making an offer.
Some lenders avoid certain property types, locations, or titles.
6. Prepare for Auctions (If Applicable)
If you’re buying at auction, remember:
You must have loan pre-approval.
Get your solicitor/conveyancer to review the contract beforehand.
Negotiate any changes (like settlement period or deposit amount) well in advance.
Once you win, you are legally bound—even if the contract isn’t signed yet.
7. Work with the Right Professionals
Surround yourself with experts who protect your interests:
Mortgage broker – guides borrowing capacity and lender policies.
Conveyancer/Solicitor – ensures the contract is sound.
Building & pest inspectors – safeguard against hidden issues.
Optional: Buyer’s agent or accountant – for strategy, tax, or investment planning.
8. Know the Grants and Schemes
First home buyers in Australia may be eligible for:
Federal schemes: First Home Buyer Guarantee, Family Home Guarantee, Regional First Home
Buyer Guarantee.
State schemes: First Home Buyer grants, stamp duty exemptions, and land tax concessions.
These can make a big difference to your deposit and upfront costs.
9. Stay Financially Ready
Keep your credit record clean.
Save for your deposit and extra costs (like inspections, solicitor fees, or moving).
Be aware of LMI (Lenders Mortgage Insurance) if your deposit is below 20%.
Final Thought
Your first home journey will be smoother if you:
Get pre-approval,
Review contracts,
Secure a cooling-off period (or prepare thoroughly for auctions),
Complete inspections, and
Work with trusted professionals.
Following these must-do steps helps you avoid costly mistakes and sets you up for a confident first
home purchase.
Related Topics
Buying at auction is fast and binding. Here are the key things you must know to prepare and bid with confidence.
Key experts—like brokers, solicitors, and inspectors—who guide and support you through every step of buying your first home.
A split loan lets you divide your mortgage into two parts—one fixed, one variable—so you can balance stability with flexibility.
Lenders may discount parts of your income—like bonuses or casual earnings—when assessing your borrowing power. This is known as “income shredding” or an “income haircut.”
Discover the five key factors lenders evaluate when assessing loan applications and learn how each plays a role in securing mortgage approval.
A high LVR could mean extra costs, while a low LVR can save you thousands. Find out why lenders care so much about this number.
Related Topics
Buying at auction is fast and binding. Here are the key things you must know to prepare and bid with confidence.
Key experts—like brokers, solicitors, and inspectors—who guide and support you through every step of buying your first home.
A split loan lets you divide your mortgage into two parts—one fixed, one variable—so you can balance stability with flexibility.
Lenders may discount parts of your income—like bonuses or casual earnings—when assessing your borrowing power. This is known as “income shredding” or an “income haircut.”
Discover the five key factors lenders evaluate when assessing loan applications and learn how each plays a role in securing mortgage approval.
A high LVR could mean extra costs, while a low LVR can save you thousands. Find out why lenders care so much about this number.
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