So, you’re thinking about buying your first home? 🎉 Exciting, right? But also… a little terrifying? We get it. Between the mortgage jargon, hidden costs, and endless paperwork, it’s easy to feel overwhelmed. But don’t worry—we’re here to break it all down in plain English (with a little fun along the way).
By the end of this guide, you’ll know exactly what to expect—from securing your deposit to moving into your dream home. Let’s get started!
Before you start scrolling through listings and mentally placing furniture, you need to know your budget. Here’s how:
✅ Deposit: In most cases, you’ll need at least 5-20% of the property’s value as a deposit. The bigger the deposit, the less you borrow (and the lower your repayments).
✅ Home Loan Pre-Approval: This is a game-changer. A lender will assess your income, debts, and expenses to give you an idea of how much they’ll lend you. (Think of it as a golden ticket to serious house-hunting!)
✅ Stamp Duty & Other Costs: First-home buyers may qualify for stamp duty exemptions (depending on where you live), but don’t forget other upfront costs like conveyancing, inspections, and lender’s mortgage insurance (LMI) if your deposit is less than 20%.
💡 Pro tip: Use an online home loan calculator to estimate your repayments and see what fits your budget.
Not all home loans are created equal! Here’s what to compare when choosing a mortgage:
💰 Interest Rate – Lower is better, but also check if it’s fixed (stays the same) or variable (fluctuates).
📉 Loan Features – Some mortgages allow extra repayments or an offset account to reduce interest costs.
💸 Fees – Watch out for sneaky loan establishment fees, annual fees, or early repayment penalties.
Need help? A mortgage broker can compare different lenders and help find the best deal for you (without you drowning in paperwork).
Time for the fun part—finding your dream home! But before you fall in love with a place, ask yourself:
🏡 Location: Is it close to work, transport, schools, and shops?
🔍 Condition: Does it need major renovations or just a fresh coat of paint?
📈 Resale Value: Is the area growing in value, or is it a risky investment?
Don’t forget to attend open houses and ask the right questions—like how old the property is, recent renovations, and what’s included in the sale.
Found the one? Now it’s time to make an offer (cue the nerve-wracking moment).
If you’re buying through private sale, negotiate with the seller (your agent can help!). If it’s an auction, set your budget limit before bidding starts—auctions move fast, and it’s easy to get caught up in the moment.
Once your offer is accepted, the process involves:
✅ Signing a contract (with conditions like finance approval and a building inspection).
✅ Paying a deposit (usually 5-10% of the purchase price).
✅ Getting formal loan approval from your lender.
✅ Organizing building & pest inspections to avoid nasty surprises.
Settlement usually takes 4-6 weeks, during which your bank and solicitor handle all the legal paperwork. On settlement day, the property officially becomes yours!
Final checklist before you pop the champagne:
✔ Transfer utilities (electricity, water, internet).
✔ Organize home insurance (you’ll need it before settlement).
✔ Change your address on all important documents.
✔ Plan your moving day (and recruit some friends with pizza bribes).
Did you know first-home buyers in Australia may be eligible for:
🏠 First Home Owner Grant (FHOG) – A lump sum payment from the government (amount varies by state).
📝 Stamp Duty Concessions – Some states waive or discount this major cost for first-home buyers.
🏡 First Home Loan Deposit Scheme (FHLDS) – Helps eligible buyers purchase with just a 5% deposit, without paying LMI.
Check your state’s government website or speak with your agent to see what you’re eligible for!
Buying your first home is a big deal, but it doesn’t have to be stressful. With the right guidance, a solid plan, and maybe a little coffee (or wine), you’ll be unlocking your dream home in no time.
At RE Realty, we specialize in helping first-home buyers navigate the market with confidence. Check out our latest listings or book a free consultation with our expert agents today! 🏡✨
