7-Step Guide for First Home Buyers

Are you tired of renting and ready to buy your first home? Before you jump in and sign a contract on a new or existing home, review our 7-step guide to buying your first home.

1. Prepare a budget

Start by calculating what you earn and what you spend each month, taking into account all your weekly, monthly and annual commitments. The surplus from each month can be used to save for a deposit, or if you already have one, ongoing loan repayments. Remember to make it realistic and achievable.

2. Save for a deposit

Ideally, you should aim for a 20% deposit, so you don’t have to pay mortgage insurance. However, some lenders will accept lower deposits if you have a good financial track record. You may also want to look at the government’s First Home Super Saver Scheme.

3. Conduct your research

Once you have your financial affairs in order, it’s time to do your research. Workout where you would like to live or invest (if you’re buying your home as an investment) then research each suburb online and then go to open for inspections and auctions. Don’t be afraid to ask real estate agents questions as this will help you get a better understanding of what you’re potentially buying.

4. Get finance approval

Now that you have a good feel for how much you need to spend, it’s always a good idea to get a finance pre-approval. If you don’t, you run the risk of signing up for a property that you may not be able to pay for.

5. Find your property

With a finance pre-approval in place you can now get serious, narrow your search and find the property to make an offer on, or if building a new home, choose your builder or new home package. It’s important to be patient at this stage, as it can sometimes take months to find your ideal property.

6. Sign all the contracts

If you’re buying an existing home, you will need to exchange contractors with the vendor (seller). This will typically include a Section 32 (Vendor’s Statement) and a contract of sale. If you’re building a new home you will also need to sign a building contract. It’s always a good idea to engage a conveyancer to check this to ensure you’re getting what you pay for.

7. Complete settlement

Before taking possession of your home, you will need to complete settlement. Your conveyancer will assist you with this process. We can also assist with the process, ensuring everything goes smoothly and you can move in or start advertising for tenants.