1. Work out your deposit and total costs
A twenty per cent deposit avoids lenders mortgage insurance (LMI). You can buy with as little as five per cent, but LMI then adds thousands to the loan, and some government schemes waive it for eligible first home buyers.
Beyond the deposit, budget for stamp duty (unless exempt), conveyancing, building and pest inspection, loan fees, registration and moving. Together these commonly total three to five per cent of the purchase price.
2. Get pre-approval, not just a calculator estimate
Pre-approval tells you what a lender will actually advance based on your income, debts, living expenses and deposit. It is usually valid for three to six months.
Reduce credit card limits and clear buy-now-pay-later accounts before applying — lenders assess limits, not balances.
3. Choose the area before the property
Decide on commute, schools, transport and the property type your budget realistically reaches in each suburb. Compare current listings and recent sales side by side rather than relying on headline medians.
Home24's suburb pages show what is currently for sale and for rent in an area, which is a fast way to sanity-check affordability.
4. Inspect properly
Attend inspections with a checklist: signs of moisture, cracking, roof and gutter condition, window and door operation, water pressure, natural light, phone reception, and noise at different times of day.
Before you commit, order an independent building and pest inspection, and for apartments read the strata report for levies, defects, litigation and sinking fund balance.
5. Make the offer or bid at auction
In a private treaty sale, offers can be conditional on finance and inspections, and cooling-off periods generally apply. Put the offer in writing with a clear expiry.
At auction there is no cooling-off period and no finance condition. Do not bid unless finance, inspections and legal review of the contract are already done, and set a hard walk-away number in advance.
6. Contract, deposit and settlement
Have your conveyancer review the contract before signing. On exchange you pay the deposit, typically five to ten per cent, into a trust account.
Settlement usually happens thirty to ninety days later. Do a final inspection the morning of settlement to confirm the property is in the agreed condition and inclusions remain.