A step-by-step guide for buying a home in Australia.
When it comes to purchasing your first property, it’s very easy to throw the thought onto the ‘too complicated’ or ‘too expensive’ pile. I mean, have you seen the price of olive oil?
However, buying a home can be quite simple and, potentially, economical. It all starts with knowing your goals and getting your financial ducks in a row.
While the process may vary slightly between states and territories, it typically involves these seven steps.
1. Save for a deposit.
Before you start saving, you need to figure out how much you need for a deposit. Do some research online to get a general idea of the house prices in the areas you’d like to live, then calculate your deposit savings goal to match – typically 20% of the purchase price, plus extra for common buying costs like stamp duty, Lenders’ Mortgage Insurance, legal and conveyance fees.
Don’t have 20% saved? There are a couple of options you can explore.
- Using a smaller deposit. At Beyond Bank, we can lend you up to 90% of your future property’s value, which means a minimum of 10% of the value needs to come from you. However, it’s important to note that if you have less than a 20% deposit, Lenders’ Mortgage Insurance will apply¹
- Asking a family member to go in as a guarantor. With our parent equity option, an immediate family member can 'guarantee' part of your loan by providing additional residential security (i.e. their own home) so you can buy a house with a deposit that is less than 20%²
- Growing your deposit. Use our Deposit Planner to see how your money could grow over time with a Beyond Bank savings account or term deposit.
2. Set a budget.
Before you start house hunting, have a think about how much you’d like to borrow and what that will mean in terms of your repayments. It’s important to strike a balance between the lifestyle you want and what you can comfortably afford.
The general rule-of-thumb is that your ongoing mortgage repayments shouldn’t exceed 30% of your after-tax salary. We have several calculators that can help you crunch the numbers:
Tip: when budgeting for your repayments, make sure to factor in any expenses that might come with a new home, like insurance, council rates, or strata fees.
3. Know what you're searching for.
OK, you’ve got your deposit ready and understand how much you want to borrow. The next thing to work out is what you need from your home base.
We recommend making a list of your ‘must-haves’ and ‘nice-to-haves':
- ‘must-haves’ are things you can’t do without. E.g. A location that’s close to family and friends, access to public transport if you don’t have a car
- ‘nice-to-haves' are things that you’d like but could live without. E.g. an outdoor space, newly renovated kitchen or bathroom.
It’s also a good idea to consider your long-term goals. For example, if you want to start a family in a few years, an extra bedroom or backyard might be non-negotiable for you.
Tip: Be realistic and open minded. Chances are your first place isn’t going to tick all the boxes – just enough of the ones that mean that the most to you.
4. Find a home loan.
There’s more to a home loan than an interest rate. Here are a few things to keep in mind as you look for a loan that suits your needs.
- The true cost of the loan. The comparison rate is a good tool to refer to as it factors in most of the costs associated with the loan, including the interest rate, fees, and charges
- Variable or fixed loan. In the period that your interest rate is fixed, both your interest rate and your repayment amount won't change. A variable interest rate home loan, on the other hand, can go up or down at any time
- Loan features. A redraw facility or offset account may help you save on interest. See our glossary of home loan terms
- Available grants and schemes. Including the First Home Owner Grant (FHOG) or Home Guarantee Scheme.
Our Loan Comparison Calculator can help you weigh up between two loans.
5. Get pre-approved.
Pre-approval (also known as approval in principle or conditional approval) means that a lender has agreed to lend you a certain amount towards the purchase of a home. It puts you in a stronger position to make an offer or place a bid at auction, plus signals to sellers that you are a serious buyer.
Thinking of choosing Beyond Bank as your lender?
We offer 120 days’ pre-approval on our home loans. Apply online or speak with a Lending Specialist to get started.
What will I need to apply for pre-approval?
- Suitable ID, like a driver’s licence or passport, to prove you are an Australian citizen or permanent resident
- Income documentation, including recent pay slips
- Information on any savings or existing loans you have, including your HECS-HELP loan.
6. Make an offer.
Now for the exciting part – finding a place to call home. It can be easy to get carried away when bidding and negotiating, so remember to stick to your budget (your future self will thank you later!).
Help for your house hunt:
How to make an offer on a property
The Contract of Sale is a legal document that sets the terms and conditions of the sale. It covers the nitty-gritty details, which typically include:
- title details
- settlement date
- cooling-off period (if applicable) - this is a period where either party can withdraw from the sale without penalty.
It’s a good idea to review the document with a conveyancer or solicitor to ensure the contract is sound. They can also assist with any negotiations, if needed.
Send a letter of offer to the real estate agent outlining how much you are willing to pay and any conditions you are asking for, such as urgent repairs or time frame for moving in.
If you are using a conveyancer or solicitor, they will be able to help prepare this document.
While your first offer might be accepted straight away, it’s more likely that you’ll have to do some negotiating with the seller.
Once you arrive at an agreement, you’ll need to exchange contracts and may be asked to pay a deposit, usually 10% of the purchase price. Again, a conveyancer or solicitor will support you through this part of the process.
A cooling-off period typically follows the exchange of contracts, unless you’ve bought a residential property at auction.
During this period, you have the option to cancel the sale, though you might lose your deposit. Make sure to get clarity on this when you review the initial contract of sale.
7. Settlement.
The final hurdle. You’ve reached an agreement with the seller and are happy to proceed with the sale.
The settlement period is usually four to six weeks after the exchange of contracts and typically involves the following steps:
- undertake a property valuation
- building and pest inspections
- finalise the loan application
- pay the balance of the property
- pay stamp duty (this usually needs to be done within 30 days of the settlement date).
So, what’s next?
Other than enjoying your new home and organising a house warming, here are some things to think about.
First Home Owner Grant (FHOG).
The First Home Owner Grant (FHOG) is a one-off grant that was introduced by the Federal Government to help first home buyers build or buy a new residential property. Eligibility and grant amount differ depending on where in Australia you want to buy.
Information by state or territory:
First Home Owner Grant ACT
First Home Owner Grant NSW
First Home Owner Grant NT
First Home Owner Grant QLD
First Home Owner Grant SA
First Home Owner Grant TAS
First Home Owner Grant VIC
First Home Owner Grant WA
How do I apply for a First Home Owner Grant?
- You can lodge the application yourself via your state or territory authority
- Your Beyond Bank Lending Specialist can assist you with your application and lodge on your behalf.
Still have some niggling questions?
Loans can be confusing, which is why we’re here to make the complicated stuff simpler. You can call us on 13 25 85, visit a branch, or book a chat with a Lending Specialist.
More resources for first home buyers.
Visit the hub
Level up your home loan knowledge and get closer to your first place.
First home buyer hub
First Home Buyer Package
A home loan bundle specially designed for Aussies entering the property market for the first time.
Go to loanThe basics:
Why Beyond Bank?
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Recognition we've received for doing right by our customers.
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Help is here.
Please read this important information.
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Lenders' Mortgage Insurance is required where the loan is greater than 80% of the value of the security property, plus the additional security provided by the guarantor. This may vary based on the location of the property. |
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The guarantee and additional security must be provided by your parent(s), in-law(s) or step-parent(s). |
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All applications for credit are subject to Beyond Bank’s credit assessment criteria. Terms and conditions are available on request. Fees and charges apply. This information is available on our website at beyondbank.com.au/about-us/corporate-governance/disclosures, by calling us on 13 25 85 to request a copy or by visiting a branch. |
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All products and services are provided by Beyond Bank Australia Ltd, 100 Waymouth Street, Adelaide, SA 5000, ABN 15 087 651 143 AFSL/Australian Credit Licence 237856. © 2025. |