First Home Buyer Guide: 8 Steps to Buying Your First Home in Australia
Buying your first home can seem daunting and you may not know the process of it. This guide will go through the steps it takes to secure a mortgage on your first property.
Get Your Finances Ready
Find a Mortgage Broker Who Understands Your Situation
Organise a Pre-Approval
Make an Offer and Get the Contract Reviewed
Submit Additional Documents for Your Loan Application
The Loan Approval Process and What to Expect
Settlement
After Settlement, What Happens Next
Step 1: Get Your Finances Ready
Before you start browsing listings, it’s important to have a good financial foundation to give yourself the best chance possible at getting approved for a loan.
Here’s what you should focus on:
Build your deposit. Traditionally you will require a minimum deposit of 5–20% of the purchase price. Any deposit less than 20% of the purchase price means you also have to pay Lenders Mortgage Insurance (LMI), an insurance premium that protects the lender, not you. LMI can either be paid upfront or added on to your total loan amount.
Show genuine savings. Many lenders like to see savings built up gradually over three to six months, rather than a lump sum that’s just landed in your account. This is often referred to as a “genuine savings” requirement.
Keep your credit history clean. Pay bills and existing debts on time, and it’s worth checking your credit file for any errors well before you apply.
Look at your existing debts and credit limits. Lenders assess what you could potentially draw on, not just what you currently owe. For example, an unused credit card with a $10,000 limit can reduce your borrowing power by roughly 3-5 times the total debt limit you carry. Paying down or closing accounts you don’t need can help.
Avoid taking on new debt before applying. Financing a car or increasing a Buy-Now-Pay-Later limit in the months before you apply can affect how much a lender is willing to offer you.
None of this needs to be perfect before you take the next step. This is general guidance, not a checklist you need to complete flawlessly, a mortgage broker can look at your individual situation and tell you exactly where you stand.
Step 2: Find a Mortgage Broker Who Understands Your Situation
Once your finances are in shape, the next step is finding a mortgage broker who can guide you through the rest of the process.
A mortgage broker acts on your behalf, rather than representing a single bank. Mortgage brokers compare your situation against a panel of lenders to help find one suited to your situation. Your deposit size, employment type, credit history, and the type of property you’re buying can all affect which lender and loan product make sense for you.
This is where Antigona Finance comes in. As your mortgage broker, we’ll take the time to understand your individual scenario and use our panel of more than 50 lenders to help find a loan suited to your circumstances. Having someone assess your full situation on your behalf helps reduce the time, stress and effort it takes to achieve your financial goals.
If you’re ready to have a chat, you can reach out to us directly at info@antigonafinance.com.au, or complete the contact form in the footer of our website and we’ll be in touch.
Step 3: Organise a Pre-Approval
Once you’re working with a broker, the next step is organising a pre-approval (also known as “conditional approval”). This is where a lender reviews your financial position and confirms an approximate amount they’re willing to lend you, subject to you finding a suitable property and meeting any remaining conditions.
A pre-approval is typically valid for 60 to 90 days, subject to your financial situation remaining the same (e.g. your income hasn’t changed and you haven’t taken on any additional debts).
While we can gather all the information about you and provide an indicative borrowing capacity, going through the pre-approval process with a lender helps you truly understand how much you can actually borrow, and gives you more confidence heading into the property market.
To process a pre-approval, we’ll ask you to provide a range of supporting documents, which can include income documents, identification, proof of deposit, and any other documents the lender requires. The exact list can vary depending on your circumstances and the lender you’re applying with.
This stage is also a good time to look at which government grants and concessions you could be eligible for, as these can affect your deposit requirements and overall budget. Eligibility depends on factors like the state or territory you’re buying in, the price of the property, and your own circumstances. More information about these grants can be found in our other guide, “First Home Buyer Schemes and Concessions: 2026”, and on the various state and territory government websites.
Step 4: Make an Offer and Get the Contract Reviewed
Once you’ve found a property and have a pre-approval in place, the next step is making an offer. If the seller accepts, you’ll move to signing a contract of sale. This is the point where you’ll need to consider:
Engage a solicitor or conveyancer, before you sign anything. They’ll review the contract terms on your behalf, flag anything unusual, and manage the legal side of the purchase through to settlement.
Most contracts include a cooling-off period, a short window after signing during which you can withdraw from the purchase, usually subject to a small penalty. The length of this period, and whether it applies at all, varies by state and territory and by how the property was sold (private treaty vs. auction, for example), so it’s worth confirming the specifics with your solicitor.
This period is also typically when you’d arrange a building and pest inspection date, which checks the property for structural issues, pest damage, and other concerns before you’re committed to the purchase.
Your contract will also usually be made subject to finance, meaning the sale is conditional on your home loan being formally approved. This protects you if you’re unable to achieve formal approval for whatever reason. Typically contracts have a 14 day period to achieve unconditional approval from the signing date (this can be extended should it be agreed upon by the seller).
Step 5: Submit Additional Documents for Your Loan Application
Once the purchase contract is in place, if you already have a pre-approval, you’ll need to provide the lender with more up-to-date documents and information (e.g. updated payslips, the contract of sale, signed consent forms).
Once we’ve received these documents from you, we’ll lodge them with the lender. From there, timing depends on the lender’s internal service times. As your mortgage broker, we will keep an eye on your application and aim to get back in touch with you as soon as the lender has provided an update.
Step 6: The Loan Approval Process and What to Expect
Once your application has been submitted for formal approval, here’s what typically happens next:
A valuation will be booked by the lender for the property you’re purchasing. If it comes in lower than the contract price, you may need to increase your deposit to maintain the required Loan-to-Value Ratio (LVR) which is the percentage of the loan against the property’s value.
The lender may come back with further questions about you as the client. This correspondence is sent to us as your broker, and if we need anything further from you, we’ll be in touch to clarify.
Once formal approval has been received, you’ll typically need to pay a deposit of 5% of the purchase price (or whatever amount was agreed when signing the purchase contract) within 24 hours. This is usually paid directly into the seller’s solicitor’s trust account. The remaining balance is paid at settlement, usually from your own solicitor’s trust account. (We’ll cover what to expect at settlement in the next step).
If you haven’t already had your building and pest inspection completed during the cooling-off period (see Step 4), this needs to be finalised before settlement.
Once approval is formal/unconditional, the lender issues loan offer/mortgage documents that need to be reviewed and signed before settlement. This can take some time to be reviewed and accepted by the lender, so it’s worth keeping this in mind.
Step 7: Settlement
Settlement is the final step in the process, this is when the property officially becomes yours. Here’s what to expect:
Your solicitor will advise you how much needs to be transferred into their trust account in time for settlement. This usually covers the remaining deposit, lender fees, solicitor fees, and stamp duty (the ACT is the only state or territory where stamp duty is paid after settlement rather than at settlement).
You’ll need to have home and contents insurance in place before settlement. Your lender will typically ask for a Certificate of Currency (a document confirming your policy is active) as proof.
If you’re buying into a strata unit or townhouse, you’ll usually only need contents insurance, since the building itself is covered under the strata or body corporate’s insurance.
It’s worth keeping an eye on your phone and email around settlement day. Small requests from your solicitor or broker aren’t unusual.
Step 8: Post-Settlement
A few things to consider post-settlement
Your first loan repayment is typically due around a month after settlement, so it’s worth confirming the exact date and making sure your direct debit account is correct.
It’s a good time to update your address across the essentials such as your licence, electoral enrolment, utility providers, and Medicare.
Your relationship with us doesn’t need to end at settlement. We’ll aim to stay in touch with you throughout the life of your loan, so if your situation changes, whether you’re refinancing, reviewing your rate, or looking at an investment purchase down the track, we’re already across your history and here to help.
FAQ
How much deposit do I need to buy my first home in Australia?
Most lenders ask for a deposit of at least 5–20% of the purchase price. If your deposit is less than 20%, you’ll usually also need to pay Lenders Mortgage Insurance (LMI).
What is Lenders Mortgage Insurance (LMI)?
LMI is an insurance premium charged when your deposit is less than 20% of the purchase price. It protects the lender, not you, and can be paid upfront or added to your loan amount.
How long does a home loan pre-approval last?
A pre-approval is typically valid for 60 to 90 days, provided your financial situation stays the same during that time.
What documents do I need for a mortgage pre-approval?
Lenders typically ask for income documents, identification, and proof of deposit, along with any other documents specific to that lender. The exact list can vary depending on your circumstances.
What happens if a property’s valuation comes in lower than the contract price?
If the lender’s valuation is lower than the price you’ve agreed to pay, you may need to increase your deposit to maintain the required Loan-to-Value Ratio (LVR) for your loan.
How long is the cooling-off period when buying a house?
Cooling-off periods vary by state and territory, and by how the property was sold (private treaty vs. auction, for example). It’s worth confirming the specific period that applies to your purchase with your solicitor.
What does “subject to finance” mean in a property contract?
A subject to finance clause makes the sale conditional on your home loan being formally approved. It protects you if your finance doesn’t come through as expected. Contracts typically allow around 14 days to reach unconditional approval, though this can be extended if agreed with the seller.
Do I need a mortgage broker to buy my first home?
You’re not required to use a broker, but a broker compares your situation against a panel of lenders to help find a loan suited to your circumstances, rather than being limited to one bank’s options. At Antigona Finance, we use a panel of more than 50 lenders to help first home buyers through the process from pre-approval to settlement.
This information is general in nature only and does not take into account your personal objectives, financial situation, or needs. It should not be relied upon as personal financial or credit advice, please seek independent professional advice before making a decision based on this information. If you'd like more personalised information about your borrowing potential, reach out to us directly for a consultation.
Antigona Finance Pty Ltd Corporate Credit Representative 576679 | Australian Credit Licence 384704
