First Home Buyer Guide Australia

Buying your first home is one of the biggest financial decisions you'll ever make. For Australians entering the property market, understanding the journey from deposit to settlement can save you time, money and stress. This guide walks you through each stage so you feel confident every step of the way.

1. Save Your Deposit

Most lenders in Australia require a minimum deposit of 5% to 20% of the property's purchase price. A 20% deposit lets you avoid Lenders Mortgage Insurance (LMI), which can add thousands to your costs. Start a dedicated savings plan, consider first home buyer schemes, and look into the First Home Owner Grant available in your state or territory.

2. Check Your Borrowing Power

Before you start inspecting properties, know what you can afford. Lenders assess your income, expenses, existing debts and credit history to determine your borrowing capacity. Use our borrowing power calculator as a starting point, then speak with an Arvion broker for a more accurate assessment tailored to your situation.

3. Get Pre-Approval

A pre-approved loan gives you a clear budget and shows sellers and agents you're a serious buyer. It is typically valid for three months and strengthens your position when making an offer. Keep in mind that pre-approval is conditional — final approval depends on the property valuation and your circumstances remaining unchanged.

4. Find the Right Property

Research suburbs, attend inspections and consider factors like proximity to work, schools, public transport and future growth potential. Don't rush. A property purchase is a long-term commitment, so take the time to find a home that fits your lifestyle and budget.

5. Make an Offer or Bid at Auction

If you're buying by private treaty, you can negotiate the price and conditions. At auction, there is no cooling-off period and the sale is final once the hammer falls. Have your finance confirmed, review the contract with a solicitor or conveyancer, and set your maximum bid before you arrive.

6. Apply for Formal Loan Approval

Once your offer is accepted, your broker will submit your full loan application to the lender. This includes property valuation, verification of your documents and a final credit assessment. Your broker will keep you updated and handle any requests from the lender on your behalf.

7. Settlement Day

On settlement day, your lender transfers the funds to the seller and you receive the keys to your new home. Beforehand, do a final inspection to ensure the property is in the agreed condition. After settlement, notify utilities, update your address and consider building and contents insurance.

Ready to take the first step? An Arvion Finance broker can guide you through the entire first home buyer journey and help you secure a competitive loan. Book a free call today.