First home buyers
Buying your first property is easier to manage when you separate your budget, loan preparation and property search into clear steps.
Start with your savings, regular income, existing debts and living costs. Your deposit is only one part of the cash you need: allow for conveyancing, inspections, lender fees, moving costs and, where applicable, stamp duty. A borrowing-power estimate gives you a useful range, but lenders make their own assessment using their current policy.
A 20% deposit can help you avoid lenders mortgage insurance, but it is not the only path to ownership. Some buyers use a smaller deposit, family support or an eligible government scheme. A lower deposit generally means a higher loan-to-value ratio, which can affect pricing, insurance and lender choice.
Pre-approval can clarify what a lender may be prepared to lend, subject to conditions and the property being acceptable security. Prepare recent payslips, identification, savings evidence, bank statements and details of debts. Do not treat pre-approval as an unconditional promise of finance.
Check comparable sales, strata records where relevant, building and pest reports, contract conditions and your likely ongoing costs. At auction, your bid is usually unconditional. Obtain legal advice early and understand any finance clause before signing a private treaty contract.
After your offer is accepted, the lender values the property and confirms final approval. Your conveyancer coordinates the legal transfer while you arrange insurance and final funds. A broker can coordinate the loan process, but legal and property due diligence remain important.