Contents
- Stage 1 — Decide (weeks 1–4)
- Stage 2 — Save (months 1–18)
- Stage 3 — Research schemes (weeks 4–6)
- Stage 4 — Pre-approval (weeks 6–10)
- Stage 5 — Search (weeks 6–24)
- Stage 6 — Make an offer (week of offer)
- Stage 7 — Cooling-off / contracts (1–5 days)
- Stage 8 — Building & pest inspections (3–10 days)
- Stage 9 — Unconditional exchange (varies)
- Stage 10 — Settlement (typically 30–90 days)
- Stage 11 — Move in & apply for grants (post-settlement)
Stage 1 — Decide (weeks 1–4)
Decide what "buy" means for you
Time: 1–4 weeks · Most buyers spend longer here than they thinkBefore you start saving or browsing listings, get clear on what you're actually buying. This stage is the most underestimated in the whole journey. A surprising number of buyers spend months looking at properties they don't actually want, in suburbs they don't actually want to live in, because they skipped this stage.
Decide, in writing
- Are you buying to live in, or as an investment? (Different loan products, different rules.)
- Are you buying alone, with a partner, or with a friend / family? (Joint applications need both parties' credit histories.)
- Are you buying an established home, a new build, or off-the-plan? (Each has very different cashflow timing.)
- Where do you actually want to live? Be specific — which suburbs, which train line, which schools.
- What's your non-negotiable minimum? (Bedrooms, parking, distance to work.)
- What's your stretch maximum? (Be honest. Borrowing the maximum rarely ends well.)
What could go wrong at this stage
Buying a property you can't actually sell easily. If you're buying in a brand-new suburb with no resale history, or a high-rise apartment in a CBD oversupplied by investor stock, your "easy exit" is gone. Talk to two mortgage brokers and ask them what they'd lend on the property as an investment — if the answer is "nothing", be cautious.Stage 2 — Save (months 1–18)
Build the deposit
Time: 3–24 months · The longer stageThe deposit is the biggest hurdle for most first home buyers. The good news in 2026 is that you don't need 20% anymore — the federal 5% Deposit Scheme means 5% is enough for most buyers, with no Lenders Mortgage Insurance (LMI).
Build your deposit using:
- Cash savings — automate weekly or monthly transfers into a separate high-interest savings account. The 5% Deposit Scheme requires genuine savings: at least 3 months of consistent saving, not a one-off gift.
- First Home Super Saver Scheme — make voluntary contributions to your super and withdraw up to $50,000 per person ($100,000 couple) for a deposit. Taxed at 15% instead of your marginal rate.
- Gifted deposits — parents or family can gift part of your deposit. Most lenders accept this with a statutory declaration.
- State FHOG — paid at settlement (not upfront), so it doesn't help you save — but it reduces the cash you need at settlement.
- Help to Buy — if you qualify, the Government contributes up to 40% of the price, reducing what you need to bring.
A practical target for a $700,000 home in 2026 is around $35,000 cash (5%). Add about $5,000–$15,000 for stamp duty, legal fees, inspections, and moving costs, depending on your state. For most buyers, the realistic target is around $40,000–$50,000 in cash by the time you sign contracts.
What could go wrong at this stage
"Genuine savings" rejections. The 5% Deposit Scheme requires genuine savings — typically three months of consistent saving in your name. A lump-sum gift, a tax return, or an inheritance might not count. If you're close to applying, start automating transfers now, even if they're small.Stage 3 — Research schemes (weeks 4–6)
Find out which schemes you qualify for
Time: 1–2 weeks · Don't skip this — it's where the money isMost first home buyers miss schemes that could save them $10,000–$40,000. Work out which ones you qualify for before you start seriously looking, because they change what you can afford.
The schemes to check:
- Federal 5% Deposit Scheme — no income cap since 1 October 2025. Check your state's price cap.
- Help to Buy — income caps apply ($103K single / $165K couple or single parent).
- Family Home Guarantee — if you're a single parent with dependents.
- State FHOG — usually only on new homes. WA, NSW, VIC: $10K. QLD: $30K (extended). SA: $15K. NT: $50K HomeGrown.
- State stamp duty exemption or concession — rules vary enormously by state. Use the state comparison.
- Keystart (WA) or HomeStart (SA) — government-backed low-deposit loans with no LMI.
- First Home Super Saver Scheme — withdraw super contributions for a deposit, with tax savings.
Try our 60-second eligibility check for an indicative answer. Then confirm details with a licensed mortgage broker or financial adviser.
Stage 4 — Pre-approval (weeks 6–10)
Get pre-approved
Time: 1–3 weeks for approval · Pre-approval lasts 3–6 monthsPre-approval (also called "conditional approval" or "approval in stat") tells you how much a lender is willing to lend you, subject to finding a suitable property. It's not a guarantee — final approval happens after valuation — but it tells you what you can actually afford and makes your offers credible.
Pre-approval checklist
- Talk to at least two brokers (Mortgage Choice, Aussie, Loan Market, or an independent broker). Different lenders have different policies.
- Ask the broker specifically about scheme eligibility (5% Deposit Scheme, Help to Buy, FHSS) — not all lenders participate in all schemes.
- Have your documents ready: 2 payslips, 2 years of tax returns or group certificates, 3 months of bank statements, ID.
- Be honest about all debts: car loans, credit cards, Buy Now Pay Later, HECS/HECS-HELP.
- Check your credit score: Equifax, Experian, or illion offer free reports.
- Get the pre-approval letter in writing. Carry it to opens and auctions.
What could go wrong at this stage
Borrowing the maximum. Lenders will often pre-approve you for more than you should actually borrow. A good rule of thumb: if your monthly mortgage repayment would be more than 30% of your take-home pay, you're stretching. Stress-test the repayment at 7–8% interest, not the current headline rate.Stage 5 — Search (weeks 6–24)
Search for the property
Time: 4–18 weeks · Don't rush; this is the largest purchase of your lifeThis is the most enjoyable stage and the one most first home buyers spend too long on. Set a hard end date for your search — six weeks is a reasonable target — and have your "must-haves" and "nice-to-haves" written down before you start.
Search tools
- Domain, REA, Homely — the three big portals. Set up alerts.
- Off-the-plan sales offices — for new apartments. Visit display suites on weekdays when they're quieter.
- Local auctions — attend a few even before you're ready to buy. Auctions are a separate skill.
- Council planning portals — check what's planned in the area (zoning changes, infrastructure, developments).
- RP Data / PropTrack — sales history for a property. Was it listed for less? How long was it on the market?
For each property you seriously consider, run the calculator with that suburb's median price to see what your monthly repayment would be. Then visit at different times of day (weekday morning, Saturday afternoon, Sunday morning) to get a sense of the noise, traffic, and neighbours.
Stage 6 — Make an offer (week of offer)
Make the offer
Time: 1–3 days · Often emotional — keep your headIf the property is being sold by private treaty (the normal way), you'll make a written offer through the real estate agent. The agent is legally working for the seller, not for you, so don't share your max budget with them. A buyer's agent can represent you, for a fee (usually 1.5–2.5% of the purchase price).
What to include in your offer
- Your name, the property address, the price you're offering.
- Your finance conditions (subject to loan approval in X days).
- Your building & pest inspection condition (subject to satisfactory inspection).
- Your settlement period (typically 30, 45, 60, or 90 days).
- Any special conditions (e.g. subject to sale of another property, subject to grant of probate, subject to repairs).
- Initial deposit (usually 0.25% — refundable if conditions aren't met).
What could go wrong at this stage
"Subject to sale" clauses. If you're waiting on the sale of another property, this clause can weaken your offer significantly. Sellers prefer unconditional buyers. Either sell first, then buy, or use bridging finance — but be aware of the cost.Stage 7 — Cooling-off / contracts (1–5 days)
Sign the contract (cooling-off applies in some states)
Time: 1–5 business days · NSW, VIC, QLD, SA, TAS offer cooling-offOnce your offer is accepted, the agent will prepare the Contract of Sale. Most states give you a cooling-off period (typically 3–5 business days) during which you can walk away (with a small penalty, usually 0.25%). WA and NT do not have cooling-off periods — once you sign, the contract is binding.
Before you sign, send the contract to:
- A conveyancer or solicitor — they review the contract, check for encumbrances, and handle settlement. Cost: $800–$2,000. Recommended.
- A building & pest inspector — they inspect for structural issues, termites, asbestos. Cost: $400–$800. Highly recommended for established homes.
- Your mortgage broker or lender — to check the property type is acceptable for the loan.
Stage 8 — Building & pest inspections (3–10 days)
Get the property inspected
Time: 3–10 days · Often waived for new builds, never for establishedIf you're buying an established home, get an independent building inspection. The cost ($400–$800) is trivial compared to what you might discover — termite damage, structural movement, plumbing issues, electrical non-compliance. For off-the-plan, the builder's specifications and your contract reviews usually substitute.
What inspections to get
- Building inspection — $400–$800, 1–2 hours. Reports on structural integrity, defects, maintenance.
- Pest inspection — $150–$300, often combined with building inspection. Reports on termites, borers, fungal decay.
- Strata / body corporate report — for units and townhouses. Check the sinking fund, recent works, any special levies.
- Independent valuation — your lender will arrange one. If it comes back lower than the purchase price, you may need to renegotiate or top up the deposit.
What could go wrong at this stage
Buying a property with major defects you've waived inspection on. If you waive the building inspection to "win" the offer, and then discover the bathroom is about to fall through the floor, you have no recourse. Don't waive inspection for the sake of being competitive.Stage 9 — Unconditional exchange (varies)
Go unconditional — the contract becomes binding
Time: 1–3 weeks · The point of no returnOnce all your conditions (finance, inspection, strata) are satisfied, you "go unconditional". The contract is now binding — you must settle, or you'll lose your deposit (typically 5–10% of the price).
What happens at exchange
- Both parties sign the final contract.
- You pay the full deposit (typically 5–10% of the price) into the agent's trust account.
- The cooling-off period ends (in states that have one).
- Your lender begins preparing the loan documents for settlement.
- Your solicitor/conveyancer starts the title searches and prepares for settlement.
Stage 10 — Settlement (typically 30–90 days)
Settle — the keys change hands
Time: 30–90 days after exchange (varies by contract)Settlement is when the balance of the purchase price is paid to the seller, the title transfers to you, and you get the keys. Your lender draws down the loan, your conveyancer checks everything is in order, and the title is transferred at PEXA (the online property exchange).
Settlement day checklist
- Final inspection of the property (within 5 business days of settlement).
- Confirm your loan has been drawn down and funds are in your conveyancer's trust account.
- Have your building insurance in place from the day you exchange — not the day you settle. The property is yours from exchange.
- Confirm the water, electricity, and gas (or equivalent) are connected or in your name.
- Have the keys, the alarm codes, and any strata/body corporate documents.
- Do a final walk-through on the morning of settlement.
What could go wrong at this stage
Settlement delays. If your lender's funds arrive late, settlement can be delayed — and you may owe penalty interest for each day. Same if the seller's side isn't ready. A good conveyancer will warn you 24–48 hours ahead.Stage 11 — Move in & apply for grants (post-settlement)
After settlement — apply for grants, set up ongoing commitments
Time: First 12 months · Don't skip the grant applicationsMost state FHOGs are paid at settlement by your lender, but a few (and the Family Home Guarantee, Help to Buy, FHSS) require post-settlement action. Set calendar reminders so you don't miss deadlines.
First 12 months — what to do
- Apply for any unpaid grants — e.g. the QLD FHOG if your lender didn't process it, the Family Home Guarantee, Help to Buy.
- Move in within 12 months — required by all the schemes. Most require 6–12 months continuous occupation.
- Set up direct debit for your mortgage — at least one day before it's due.
- Review your insurance — building, contents, and (if applicable) landlord insurance if you'll ever rent it out.
- Notify the ATO of your new principal place of residence (for capital gains tax purposes later).
- Register with the local council if you'll be running a business from home (rare, but check).
- Build a maintenance fund — budget 1% of the property value per year for repairs and maintenance.
Welcome home. 🎉
The full buying journey, stage by stage
We have written the guide for every stage — from picking a suburb to moving your utilities in. Start where you are.
Property due diligence checklist
What to check at inspections, strata reports, title searches and flood mapping — with real repair costs.
Stage 3 · OfferOff-the-plan contract pitfalls
The 7 clauses that decide whether you're protected: sunset clauses, deposit draw-downs, variations.
Stage 3 · OfferPre-approval to unconditional
The ten weeks between permission to look and permission to buy — and what can still go wrong.
Stage 4 · SettleThe conveyancer guide
What they do, what it costs in 2026, and how to tell a good one from a bad one.
Stage 4 · SettleHidden settlement costs
The full cash breakdown on the day you buy, and the fees first home buyers forget.
Stage 4 · SettlePre-settlement inspection
Your last look before you hand over the money, and what you can withhold funds for.
Stage 5 · Move inUtilities and your first-year budget
Connecting services, setting up insurance, and budgeting for your first year of ownership.
FinancingBroker or direct bank?
When a broker earns their commission — and when going direct is the better call.
Tools you can use at each stage
lodeposit.com.au has free tools that map to the stages above:
- Stage 2–3: Deposit calculator — see how much you need and what schemes you qualify for.
- Stage 3: 60-second eligibility check — an indicative answer to "which schemes apply to me".
- Stage 5: Property search — listings for first home buyers, with price bands and state filters.
- Stage 11: Grants & concessions — every federal and state scheme in one place.
Editorial methodology
This guide is general information for first home buyers in Australia. It is not legal, financial or tax advice, and individual circumstances vary. Always confirm specifics with a licensed adviser, your state revenue office, and your lender before acting.
Sources used for the scheme figures referenced throughout: Housing Australia, ATO, each state revenue office, and firsthomebuyers.gov.au. Where scheme details are subject to change (e.g. WA thresholds from 7 May 2026, ACT from 1 July 2026, QLD citizenship test from 1 August 2026, NT HomeGrown by 30 September 2026), we've flagged the dates inline.
Last reviewed: 5 October 2026. Next scheduled review: January 2027.
We are an Australian independent editorial site focused exclusively on first home buyer schemes and pathways. We are not a lender, broker, scheme administrator, or financial adviser. We do not recommend any particular property, project, lender, or product. Final eligibility for any scheme is determined by the participating lender, state revenue office, or scheme administrator — not by this site.