First home buyer guide

Start with the full purchasing budget

The property price is only one part of the amount required. A practical budget should allow for costs that may arise before, at and after settlement.

• Deposit and funds required to complete the purchase
• Stamp duty or transfer duty where applicable
• Conveyancing or legal costs
• Building, pest, strata or other property reports
• Loan, valuation or settlement fees where applicable
• Insurance, moving costs and an appropriate cash buffer

Eligibility for government schemes or concessions depends on current rules and personal circumstances. Confirm current requirements with the relevant government body and obtain advice where needed.

Understand the deposit and savings position

The available deposit can affect the loan amount, costs and lender options. Lenders may consider where the funds came from and whether part of the deposit demonstrates a savings history.

Questions to clarify early

• How much is available now and how much may be saved before purchase?
• Are funds held in savings, investments, equity or another source?
• Is any part of the deposit a gift, guarantee or borrowed amount?
• Will enough remain for costs and unexpected expenses after settlement?

Guarantor arrangements can create significant obligations and may require independent legal and financial advice for the guarantor.

What home loan pre-approval can and cannot do

Pre-approval can provide an indication of a lending position based on information available at the time. It is generally subject to conditions, expiry periods, verification and an acceptable property.

It is not a guarantee that every property or later application will be approved. Changes to income, employment, debts, expenses, lender policy, interest-rate assumptions or the proposed property can affect the outcome. Confirm the status and conditions before making an unconditional commitment.

Documents commonly requested from first home buyers

• Current identification and address details
• Recent payslips or other income evidence
• Bank statements showing salary, savings and account conduct
• Statements for credit cards and other loans
• Evidence of the deposit and its source
• A summary of assets, liabilities and living expenses
• Contract of sale once a property is identified

Self-employed applicants and applicants with variable or non-standard income may need additional history. Use the home loan application checklist for a broader preparation list.

Inspect the property and understand the contract

Finance assessment does not replace due diligence on the property or independent legal advice. Before signing or bidding, understand the contract process, proposed settlement timing and whether a finance condition is available or appropriate.

• Arrange suitable property inspections and reports.
• Ask a qualified legal professional to review the contract.
• Understand auction rules, cooling-off periods and finance clauses in the relevant state or territory.
• Confirm whether the property type, condition and location are acceptable for the proposed lending pathway.
• Avoid assuming that a lender valuation will identify every property risk.

The usual first home loan journey

1. Set the budget, deposit plan and preferred timing.
2. Review the borrowing position and likely document requirements.
3. Consider suitable loan structures and lender options.
4. Seek pre-approval where useful and understand its conditions.
5. Find a property and complete legal and property due diligence.
6. Submit or update the full application with property details.
7. Complete valuation and outstanding approval conditions.
8. Prepare for settlement and the first repayment cycle.

Keep the position stable

Before settlement, discuss material changes such as new credit, large purchases, employment changes or movement of deposit funds. These changes may need to be reassessed.