The Ultimate First Home Buyer Guide (Australia Edition, 2025)
The Ultimate First Home Buyer Guide (Australia Edition, 2025)
Everything you need to go from confused to confident — and into your first home sooner. This comprehensive guide provides Australian first home buyers with a step-by-step roadmap to navigate the property market, understand financial requirements, leverage government support, and ultimately, achieve their dream of homeownership without stress.
Introduction
Are you a first home buyer feeling overwhelmed by the home buying process? Is it causing you to feel confused about where to start, worry about loan approval, or think home ownership is out of reach?
Imagine if you could eliminate the confusion and buy your first home with clarity and confidence.
Know exactly what steps to take
Understand what lenders are looking for
Discover government support programs that can help you
Move into your first home faster — and stress free
The good news? You can. Buying your first home doesn’t have to be hard. And this Definitive Guide shows you how.
Hi, I’m Kevin, and I help first home buyers in Australia buy their first property without the stress by guiding them through the finance and home buying process — step-by-step.
In this guide, I’m keeping it simple by walking you through the 5 key steps to go from dreaming to doing — so you can stop renting and start living in your very own home. I can’t wait to hear about your success!
Kevin Chung
Director and Principal Mortgage Broker
BIG Financial
How to Buy a House in Australia Without Stress or Surprises
Most first home buyers want clarity and confidence when buying their first home — so they can move in sooner and start building equity.
But many struggle with the overwhelming process, which leads to wasted time and energy, missed opportunities, and fear of making a costly mistake.
Why?
Because of:
Not knowing how the home loan process works
Misunderstanding deposit requirements and hidden costs
Being unaware of government schemes available to help
What most people don’t realise is:
You don’t always need a 20% deposit
There are grants and schemes that make it easier
There’s a proven step-by-step process to follow — and this guide gives it to you
Step-by-Step Roadmap for First Home Buyers in Australia
This roadmap guides you through each stage, ensuring you’re informed and confident as you buy your first home in Australia.
1
Getting Ready to Buy
Review your income, expenses, and debts. 
Calculate how much you can save each month for a deposit. 
Check your credit score and address any issues.
Research Government Grants & Schemes: Explore options like the First Home Owner Grant (FHOG), First Home Loan Deposit Scheme, and stamp duty concessions. Check eligibility requirements for each scheme.
Set Your Budget: Use online calculators to estimate your borrowing power. 
Factor in additional costs: stamp duty, legal fees, inspections, and moving expenses. 
Decide on a comfortable price range for your first home.
2
Get Loan Pre-Approval
Gather documents: payslips, IDs, bank statements, and proof of savings. 
Meet with a mortgage broker to compare loan products. 
Apply for pre-approval to strengthen your position when making offers.
3
Start House Hunting
List your “must-haves” and “nice-to-haves”. 
Research suburbs for growth potential, amenities, and lifestyle. 
Attend open homes and inspections, using a checklist to evaluate properties.
4
Make an Offer & Sign Contracts
Decide on your offer strategy (private sale or auction). 
Submit your offer or bid at auction. 
Engage a conveyancer or solicitor to review the contract of sale. 
Sign the contract and pay the deposit.
5
Arrange Final Loan Approval & Settlement
Provide your lender with the signed contract and any additional documents. 
Finalize your home loan and insurance. 
Your conveyancer coordinates to transfer ownership. 
Receive the keys to your new home!
1. Getting Ready to Buy
Buying your first home in Australia is a significant milestone—but it can also feel overwhelming. This comprehensive guide will walk you through every step, from saving your deposit to moving in, with practical tips, checklists, and insider advice tailored for Australian first home buyers.
Assess Your Financial Situation
Review your income, expenses, and debts: Start by tracking your monthly income and outgoings. Use a budget planner to get a clear picture of your financial health.
Calculate your savings potential: Figure out how much you can realistically save each month towards your deposit.
Check your credit score: Obtain a free credit report from major agencies like Equifax, Experian, or illion. Address any issues, such as unpaid debts or errors, to improve your borrowing power.
Understanding Government Grants and Schemes
First Home Owner Grant (FHOG): A one-off grant for eligible first home buyers purchasing or building a new home. The amount and eligibility criteria vary by state—typically between $10,000 and $30,000, with property value caps and residency requirements.
First Home Guarantee (FHBG): Allows eligible buyers to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). Income and property value caps apply.
Stamp Duty Concessions: Many states offer reduced or waived stamp duty for first home buyers, often with property value limits.
Other Schemes: Check your state's Revenue Office for additional incentives, such as shared equity schemes or regional grants.
2. Get Loan Pre-Approval – The Home Loan Process Demystified
How Much Can You Borrow?
Use online calculators: Most banks and brokers offer borrowing power calculators. Input your income, expenses, and debts for an estimate.
Lender assessment: Lenders will assess your ability to repay based on your income, job stability, living expenses, and existing debts.
Deposit requirements: Most lenders require at least 5–20% deposit. With the First Home Guarantee, you may only need 5%.
Example Calculation
If you earn $100,000 per year and have minimal debts, you might borrow up to $500,000, depending on your expenses and deposit and the interet .
Types of Home Loans in Australia
Fixed Rate: Interest rate is locked in for a set period (e.g., 2–5 years). Predictable repayments, but less flexibility.
Variable Rate: Interest rate can change with the market. More flexible, but repayments may rise.
Offset Account: A transaction account linked to your loan—reduces the interest charged on your mortgage.
Redraw Facility: Lets you access extra repayments you've made, providing flexibility if you need funds later.
How to Get Pre-Approval Fast
Gather documents: Payslips, bank statements, proof of savings, ID, and a credit report.
Meet with a mortgage broker: They can compare products and help you apply, often at no cost to you.
Apply for pre-approval: Conditional approval usually lasts 3–6 months and strengthens your position when making offers.
3. House Hunting Like a Pro
What to Look for in a Property
1
Location
Proximity to work, schools, transport, and amenities. Consider lifestyle factors and future development.
2
Growth Potential
Research historical price trends and future infrastructure plans in the area to identify potential for capital appreciation.
3
Property Type
Decide between houses, townhouses, or apartments based on your lifestyle, long-term goals, and budget. Each has different maintenance and ownership implications.
4
Inspection Tips
Check for structural issues, water damage, and signs of pests. Use a comprehensive property inspection checklist during open homes.
Questions to Ask Real Estate Agents
Why is the property for sale?
How long has it been on the market?
Are there any known issues with the property?
What is included in the sale (fixtures, appliances)?
What are the recent comparable sales in the area?
How to Avoid Common First-Time Buyer Traps
Don’t skip crucial building and pest inspections.
Stick to your budget—don’t get caught up in emotional bidding wars.
Understand all associated costs: stamp duty, legal fees, insurance, and moving expenses.
Beware of properties with hidden issues or in flood-prone areas, always consult local council information.
4. Making an Offer & Navigating Contracts
Understanding Offers, Auctions, and Negotiations
Private Sale
Make an offer through the agent. You have the flexibility to negotiate price, settlement terms, and special conditions.
Auction
Bid publicly. If you are the winning bidder, contracts are signed immediately, and there is generally no cooling-off period.
Negotiation tips: Know your absolute maximum budget, be prepared to walk away if the price exceeds your comfort zone, and avoid revealing your maximum price to the agent prematurely.
What’s in a Contract of Sale?
The Role of Conveyancers and Legal Checks
Conveyancer/solicitor: Your legal representative who reviews the contract, conducts necessary title searches (e.g., checking for easements, outstanding debts, or planning restrictions), and ensures the legal transfer of ownership. They are crucial for protecting your interests.
Cooling-off period: Varies by state—typically 2–5 business days, providing a short window to withdraw from the contract without severe penalty (does not apply to auction purchases).
5. Settlement & Moving In
What Happens at Settlement?
Fund Transfer
Your lender transfers the home loan funds to the seller's legal representative.
Title Transfer
The property title is officially transferred from the seller to your name.
Cost Payments
You pay remaining costs, including stamp duty, legal fees, and adjustments for council rates and utilities.
Key Handover
You receive the keys to your new home and can officially move in!
Final Checks Before You Get the Keys
Pre-settlement inspection: Conduct a final walkthrough to ensure the property is in the agreed condition and all inclusions are present.
Utilities: Arrange for electricity, gas, water, and internet to be connected in your name from the settlement date.
Insurance: Ensure you have comprehensive home and contents insurance in place from the settlement date to protect your new asset.
Moving Tips and a Handy Moving-Day Checklist
Book removalists or hire a moving truck well in advance.
Pack essentials separately (toiletries, chargers, important documents) for immediate access.
Update your address with banks, the ATO, service providers, and important contacts.
Redirect your mail to your new address to avoid missing anything important.
Clean your old property thoroughly and do a final walkthrough before handing over the keys.
What Happens If You Skip These Steps?
If you skip critical steps like obtaining pre-approval, thoroughly researching support grants, or setting a detailed budget, you risk:
Falling in love with a property you ultimately can’t afford, leading to disappointment and wasted effort.
Missing out on $30K+ in valuable government support and grants that could significantly reduce your upfront costs.
Paying more than you should in fees and interest over the life of your loan due to poor financial planning or unsuitable loan choices.
Avoid these costly mistakes by diligently following the steps outlined in this guide. Your financial future depends on it.
Frequently Asked Questions
How much deposit do I need? Generally, 5–20% of the property value. With government schemes like the First Home Guarantee, you may be able to buy with as little as a 5% deposit, avoiding LMI.
What grants am I eligible for? Eligibility varies by state and scheme. Check your state’s Revenue Office website for the latest grants and detailed criteria. Most significant grants are for new homes only and have property value caps.
Do I need a mortgage broker? While not mandatory, a broker can be invaluable. They help you compare loan products from multiple lenders, access a wider range of options, and navigate the complex application process, often at no direct cost to you.
What are the main upfront costs? Key upfront costs include your deposit, stamp duty (unless exempt/concessional), legal/conveyancing fees, building and pest inspection fees, initial home and contents insurance premiums, and moving expenses.
Insider Mortgage Tips
Here are insider mortgage tips for first home buyers in Australia:
Take Advantage of Government Schemes: Programs like the First Home Owner Grant (FHOG) and First Home Guarantee (FHBG) allow eligible buyers to purchase with as little as a 5% deposit, often without paying Lenders Mortgage Insurance (LMI). These incentives can significantly reduce upfront costs, so check your eligibility and apply early.
Understand Lenders Mortgage Insurance (LMI): LMI is a fee charged if your deposit is less than 20%. Government schemes can help you avoid this cost, saving you thousands.
Consider Gifted Funds or a Guarantor: If saving a deposit is challenging, some lenders accept gifted funds from family, or you might use a guarantor (such as a parent) to strengthen your application and potentially avoid LMI.
Improve Your Credit Score Before Applying: Pay off outstanding debts, avoid new credit applications, and ensure all bills are paid on time. A higher credit score can help you secure better loan terms and interest rates.
Get Pre-Approval: Securing pre-approval before house hunting clarifies your borrowing power and strengthens your offer when negotiating with sellers.
Budget for All Costs: Beyond your deposit, budget for stamp duty, legal fees, inspections, moving costs, and ongoing property maintenance. Many first home buyers underestimate these expenses.
Use a Mortgage Broker: A broker can compare loan products from multiple lenders, explain complex terms, and help you access exclusive deals or incentives you might miss on your own.
Factor in Interest Rate Buffers: Lenders assess your ability to repay at a higher interest rate than the current one to ensure you can manage future rate rises. Always leave room in your budget for potential increases in repayments.
Explore State-Specific Grants and Concessions: Each state and territory offers unique incentives, such as stamp duty concessions or additional grants. Research what’s available in your area to maximize your benefits.
Stay Organised with Documentation: Have all your paperwork ready—ID, payslips, bank statements, and evidence of savings—to speed up the loan approval process and avoid delays.
Applying these tips will help you navigate the mortgage process more confidently and increase your chances of securing the right home loan for your needs.
Let’s Talk About Your First Home
Buying your first home is personal — and your situation is unique.
That’s why I’m offering you a FREE First Home Buyer Strategy Call …
In just 30 minutes, you’ll:
Discover how much you can borrow
Learn which grants you can use
Get a simple action plan to get into your home faster
BOOK YOUR FREE STRATEGY CALL NOW

Have questions? Reach out at [email protected] or call +61 482 088 898.
Kevin Chung

Director and Principal Mortgage Broker
BIG Financial
What Others Are Saying
“This guide simplified everything. I had no idea I was eligible for government help until I spoke with Kevin!”
— Taylor S.
“As a single buyer, I thought I’d never afford a home. But this process made it possible.”
— Melissa D.
Made with