Buying your first home is one of the biggest financial decisions you’ll make. At Home Owners Association, we’ve helped thousands of first-time buyers navigate this process successfully.

This guide walks you through the tips for buying your first home, from getting your finances ready to closing the deal. You’ll learn exactly what to do at each stage so you can move forward with confidence.

Getting Your Finances in Order

Check Your Credit Score and History

Your credit score is the first thing lenders examine, and it directly affects your mortgage approval odds and interest rate. A higher credit score makes mortgage approval more likely, while a lower score can result in higher interest rates, higher upfront and ongoing fees, and larger deposit requirements. Check your credit history now-before you start house hunting-because it takes time to improve if needed.

Paying bills on time protects and improves your credit score more effectively than any other action. Set up automatic payments for all your bills and credit cards through your bank’s app or NetBank to avoid late payments that damage your score. If you have multiple debts, pay as much as you can afford each month to reduce balances and demonstrate solid money management. Building a savings buffer also protects your ability to make on-time payments when unexpected costs arise.

Save for a Down Payment

Once your credit is solid, focus on your down payment savings. Home buyers usually need a deposit of 20% of the property value to get a home loan, though those with a smaller deposit may require Lenders Mortgage Insurance. A larger deposit means lower borrowing costs and potentially better mortgage rates.

Use a savings account that pays higher interest than a transaction account to help your money grow faster. Set a savings goal in NetBank and nickname it to stay motivated. Consider the 5% Home Deposit Scheme if eligible, which lets you purchase with a 5% deposit while avoiding Lenders Mortgage Insurance entirely. Federal programs like the First Home Owner Grant also reduce upfront costs depending on your state or territory.

Get Pre-approved for a Mortgage

Before making offers on properties, obtain pre-approval for a mortgage. Conditional online approval takes as little as 10 minutes and strengthens your purchasing position by confirming your borrowing power. Use a borrowing power calculator to estimate how much you can realistically borrow based on your income, expenses, and existing debts (different lenders have different criteria, so shop around). Work with a home lending specialist to understand your actual borrowing capacity and explore loan features like offset accounts that help you pay off your home faster. This preparation puts you ahead of other buyers and removes guesswork from your property search, positioning you well to identify and pursue the right property.

Finding the Right Property

Understand Your True Budget

Now that you have pre-approval and know your borrowing capacity, you need to find a property that actually fits your budget. This is where affordability data becomes critical. According to KPMG analysis using ABS data, only about 12% of homes nationwide fall within reach for typical first-home buyers. In Victoria, that figure drops to just 10%, while New South Wales sits at only 5%.

These numbers demand a realistic strategy, not wishful thinking.

Start by determining your actual budget based on your pre-approval amount, then subtract upfront costs you’ll face at settlement. Beyond your deposit, you’ll encounter stamp duty (often the largest cost), legal and conveyancing fees ranging from $700 to $2,500, mortgage registration fees around $119–$200, building and pest inspection costs, and potentially Lenders Mortgage Insurance if your deposit is under 20%. For an $800,000 property in Victoria, upfront costs can easily exceed $50,000 beyond your deposit. Use your state or territory’s stamp duty calculator to get exact figures for your area, as these vary significantly.

Expand Your Location Strategy

Location preferences matter enormously for both affordability and long-term value. KPMG data shows that while 80% of Australia’s population lives in capital cities, many first-home buyers increasingly look at regional areas like the Gold Coast, Townsville, and Cairns to improve their purchasing power. Regional options often offer better value, though you must consider long-term resale prospects, infrastructure development, and whether you’ll accept longer commutes.

Choose the Right Agent for Your Needs

When you’re ready to search, working with a real estate agent gives you access to listings before they hit major portals. Understand that agents represent the seller, not you. A buyer’s agent, by contrast, works exclusively for you and can identify safer, more affordable options while helping you avoid properties with significant renovation or safety risks. The upfront cost of a buyer’s agent warrants consideration against the savings they typically negotiate.

Conduct Thorough Property Inspections

Do not skip professional building and pest inspections-this is non-negotiable. Virtual tours miss critical defects like structural issues, mould, asbestos, and pest damage that could cost thousands to fix. Test water pressure in showers and taps, check for leaks and water stains, and examine the hot water system’s age.

Inspect windows and doors for proper seals and operation; in bushfire-prone areas, verify BAL-rated windows.

Look for uneven floors, doors that won’t close properly, and significant cracks, as these indicate foundation problems (particularly important in Melbourne and Adelaide where clay soils cause movement). Check electrical safety by assessing wiring age and the condition of the electrical panel; ensure smoke alarms are present. Examine kitchen cabinets and benchtops for water damage, and assess pest risks based on your climate. Inspect walls and ceilings for cracks, stains, and mould.

Review the roof for damaged tiles and guttering; in cyclone-prone areas, confirm cyclone-rated roofs. Verify adequate insulation and ventilation in the attic to reduce mould risk and improve energy efficiency. Get a land survey to understand boundaries, contours, drainage, and underground services that affect future renovations.

Assess Location and Negotiate Issues

Location assessment extends beyond the property itself-check proximity to schools, shops, public transport, crime rates, and local development plans. Test the area at different times of day to understand noise levels. If you find issues during inspection, involve your conveyancer immediately to negotiate repairs or a lower price, or add a special condition requiring fixes before settlement. Once you’ve identified a property that meets your needs and budget, you’ll move into the next critical phase: making an offer that positions you competitively in the market.

Making an Offer and Closing the Deal

Research and Submit Your Competitive Offer

Once you’ve found a property that fits your budget and passed inspection, your offer determines whether you actually buy the home. This stage demands strategy, not emotion. Your first offer sets the tone for all negotiations that follow, and making it competitive without overpaying requires understanding current market conditions in your area. Research comparable sales for similar properties in the same suburb to establish a realistic starting point. If you’re in a hot market like parts of Queensland where median prices jumped roughly 80% over five years according to ABS data cited by KPMG, expect to face multiple offers on desirable properties. In cooler markets, you have more room to negotiate.

Submit your offer in writing through your real estate agent or conveyancer, and always include a clear settlement date, typically 30–60 days out. Include standard conditions like finance approval (your pre-approval letter strengthens this) and satisfactory building and pest inspection results. These conditions protect you if your circumstances change or if the property fails inspection. Engage your conveyancer early-before you make an offer-to understand your state’s specific requirements and timelines.

Navigate Counteroffers and Terms

Negotiation starts the moment the seller responds, and this is where most first-time buyers lose confidence. If the seller counters your offer with a higher price, you have three realistic choices: accept, counter again, or walk away. Walking away often proves the strongest negotiating position, especially given that only 12% of Australian homes fall within reach for typical first-home buyers according to KPMG analysis. Avoid becoming emotionally attached to a property that stretches your budget beyond comfort.

During negotiation, focus on terms beyond price. Request that the seller complete repairs identified in your building inspection rather than accepting a lower offer price, or negotiate a later settlement date if you need more time to arrange finances. Once both parties agree on price and terms, your conveyancer conducts final checks: they verify the seller’s ownership, search for any liens or encumbrances on the title, and confirm all contract conditions are met.

Complete Your Final Walkthrough

Conduct your final walkthrough 24 hours before settlement to confirm the property is vacant, all agreed repairs are complete, and no damage has occurred since your last inspection. This step protects you from surprises on settlement day and gives you time to raise concerns with your conveyancer if issues arise.

Finalise Settlement and Transfer Ownership

Settlement itself involves signing final documents, arranging your home and contents insurance (budget around $1,000 annually for building insurance and $500 for contents), and transferring funds to your conveyancer, who then pays the seller and registers you as the new owner with the relevant state land titles office. This entire process from offer to settlement typically takes 30–90 days depending on your state and circumstances.

Final Thoughts

You’ve now walked through every stage of buying your first home, from strengthening your credit and saving your deposit through to settlement day. The tips for buying your first home all centre on one principle: preparation beats panic. When you check your credit early, understand your true budget including upfront costs, conduct thorough inspections, and negotiate strategically, you position yourself to make decisions that serve your long-term interests rather than your emotions.

The affordability squeeze facing first-time buyers across Australia is real-only 12% of homes fall within reach for typical buyers nationally. Regional markets, smaller properties, and older homes often represent your best path forward, provided you’ve inspected them properly and understand their true condition and resale prospects. After settlement, your work shifts from buying to owning, so set up your offset account immediately to start reducing your interest costs and establish a maintenance schedule for your new property.

Connect with the Home Owners Association if you’re in Melbourne, where members access trade pricing on materials and expert guidance for renovation and maintenance projects that protect your investment. Your first home is the foundation for building wealth through property ownership. The financial discipline and planning you’ve demonstrated to get here will reward you for decades to come.