Buying your first home involves a lot of people: lenders, agents, conveyancers, inspectors, and sometimes government agencies. It's easy to lose track of what comes next. This checklist puts every step in order so you know what to do, and when.
Stage 1: Get your finances ready (3 to 12 months out)
- Check your credit report. Get a free copy from Equifax, Experian or illion. Fix any errors and pay overdue bills.
- Cut down credit limits. Lenders count your credit card limit, not your balance. Reduce or close cards you don't need.
- Clear or reduce Buy Now Pay Later accounts. They can count against your borrowing power.
- Track your spending. Lenders will look at three months of bank statements. Big takeaway and gambling transactions get noticed.
- Build genuine savings. Keep your deposit in one account and add to it regularly.
- Look into FHSS. If you're a year or more away, the First Home Super Saver scheme could boost your deposit.
Stage 2: Work out your budget (1 to 3 months out)
- Find out what you can borrow. Use our borrowing power calculator, then speak to a broker for a lender-accurate figure.
- Check which schemes you qualify for. The 5% Deposit Scheme, Help to Buy, stamp duty exemptions and the First Home Owner Grant can change your budget a lot.
- Add up upfront costs. Stamp duty (if any), conveyancing, inspections, loan fees, moving.
- Decide your comfortable repayment. Not the maximum a bank will lend, but what you can pay without stress.
Stage 3: Get pre-approval
Pre-approval is a lender's conditional agreement to lend up to a certain amount. It usually lasts 90 days, sometimes longer.
You'll typically need:
- ID (driver licence, passport)
- Two recent payslips, or two years of tax returns if self-employed
- Three months of bank statements
- Details of debts, credit cards and assets
- Evidence of your deposit
If you're using a government scheme, your broker can also reserve your place through the participating lender.
Stage 4: House hunting
- Make a must-have list and a nice-to-have list.
- Check flood, bushfire and zoning maps. On the NSW South Coast and in parts of Western Sydney this matters a lot for insurance.
- Look at recent sales, not just asking prices. Sites like realestate.com.au and Domain show sold prices.
- Ask questions at inspections. Strata levies, council rates, why the owner is selling.
Stage 5: Before you sign or bid
- Get the contract reviewed by a conveyancer or solicitor.
- Book a building and pest inspection. For apartments, also get a strata report.
- Negotiate a cooling-off period if buying by private treaty. In NSW it's 5 business days by default.
- For auctions, finance must be ready. There's no cooling-off period and the contract is unconditional.
Stage 6: Exchange and formal approval
- Pay your deposit, often 10% in NSW, though agents may accept 5% if you ask early. A deposit bond can help.
- Your broker submits for formal approval. The lender orders a valuation.
- Arrange building insurance from exchange or settlement, depending on your contract.
Stage 7: Settlement
- Sign your loan documents and return them promptly.
- Do a final inspection a day or two before settlement.
- Your conveyancer and lender settle electronically, usually 6 weeks after exchange in NSW.
- Collect your keys from the agent.
Stage 8: After you move in
- Set up your offset account if you have one, and move your savings into it.
- Update your address with the electoral roll, ATO, banks and insurers.
- Keep the residence rules in mind. Stamp duty exemptions and grants require you to live there for set periods.
- Review your loan every year. Lenders often reward new customers more than loyal ones. We'll remind you.
Frequently asked questions
How long does the whole process take?
From pre-approval to keys, often 2 to 4 months, depending on how long you search. Settlement itself is usually about 6 weeks after exchange.
When should I talk to a mortgage broker?
Before you start looking. Pre-approval sets your budget and makes you a stronger buyer.
Can I buy at auction as a first home buyer?
Yes, but make sure your finance and inspections are done beforehand. We cover this in our post on buying at auction.
Want a broker to walk you through each stage? Call Finfident on 02 6416 2142, or Call, Text or WhatsApp 0424 545 654. We'll stay with you from pre-approval to settlement day.
Want to know if this applies to you?
Talk it through with a Finfident broker. It's free and there's no obligation.
