Buying your first home is a milestone many Australians dream about. It’s more than a financial decision — it’s the start of building stability, creating memories, and investing in your future.
But let’s be real: the process can feel daunting. Between banks, brokers, contracts, inspections, and auctions, it’s easy to feel lost before you even begin. The good news? With the right plan and guidance, buying your first home can be simpler (and less stressful) than you think.
Here are five clear steps to take you from dreaming about your first home to picking up the keys.
Step 1: Get Clear on Your Budget
Your budget is the foundation of the entire process. Without it, you risk wasting time looking at homes you can’t afford or missing opportunities because you underestimated your capacity.
Here’s what to do:
1. Know your borrowing capacity
Meet with a mortgage broker or lender to understand how much you can borrow. They’ll look at your income, debts, savings, and spending habits.
2. Calculate your deposit
Most lenders want a 10–20% deposit. For example, if you’re buying a $600,000 home, you’ll need at least $60,000–$120,000 saved.
3. Factor in upfront costs
These often surprise first-time buyers. Stamp duty (unless you qualify for an exemption), conveyancing fees, loan application fees, building inspections, and moving costs can add up quickly.
4. Think about ongoing costs
Mortgage repayments aren’t the only expense. Add in council rates, strata fees (if buying an apartment), home insurance, utilities, and maintenance.
👉 Pro tip: Use a budget calculator and add a 10% buffer for unexpected expenses. It’s better to be pleasantly surprised than financially stretched.
Step 2: Secure Pre-Approval
Pre-approval is like getting a green light from the bank. It’s not final approval, but it tells sellers you’re serious and gives you confidence in your price range.
Why it matters:
• It speeds up the process once you find the right home.
• It gives you negotiating power — sellers are more likely to accept your offer if your finance is already assessed.
• It keeps you disciplined. You’ll know your upper limit and avoid emotional overspending.
How to get pre-approval:
• Provide your lender with proof of income, savings, debts, and identification.
• The bank assesses your situation and confirms how much they’d be willing to lend.
• Pre-approval usually lasts 3–6 months, giving you time to shop around.
👉 Pro tip: Avoid changing jobs or making big purchases (like a car) after you’ve got pre-approval. It can reduce your borrowing capacity.
Step 3: Research the Market
Now the fun begins — house hunting! But before you get carried away at open homes, take time to research the market so you know exactly what to look for.
Key things to consider:
1. Location, location, location
Think long-term. Are you close to schools, public transport, shops, and lifestyle amenities? Is the area likely to grow in value?
2. Type of property
Do you want a house with a backyard, a townhouse with less maintenance, or an apartment that’s more affordable? Think about your lifestyle now and in the next 5–10 years.
3. Price comparisons
Look at recent sales in your chosen suburb. This helps you avoid overpaying and gives you realistic expectations.
4. Visit open homes
Even if you’re not ready to buy, attending inspections will sharpen your eye. You’ll quickly learn the difference between a good deal and an overpriced property.
👉 Pro tip: Keep a notebook or spreadsheet to compare properties. Include price, size, features, pros/cons, and your gut feeling.
Step 4: Make Your Move
You’ve found a property you love — now it’s time to act.
Here’s how the process usually works:
1. Get the contract reviewed
Always have a solicitor or conveyancer check the contract before you sign. They’ll explain your obligations, identify risks, and negotiate terms if needed.
2. Organise building & pest inspections
Don’t skip this step! Inspections protect you from nasty surprises like termites, leaks, or structural issues.
3. Make your offer
• Private treaty: You put in a written offer with your conditions (e.g. subject to finance or inspection).
• Auction: You bid publicly on the day. If you win, the contract is unconditional — no cooling-off period.
4. Pay the deposit
Typically 5–10% of the purchase price is due once your offer is accepted or you win at auction.
👉 Pro tip: Stay calm and stick to your budget. Emotional decisions at this stage are the biggest trap first home buyers fall into.
Step 5: Settle and Move In
Settlement is the final stage — and the most exciting one.
What happens at settlement:
• Your lender transfers the loan funds to the seller.
• The property is legally transferred into your name.
• You get the keys and it time to CELEBRATE!
Don’t forget:
• Keep savings aside for moving costs, furniture, and small fixes.
• Set up utilities (electricity, gas, internet) ahead of time.
• Celebrate your achievement — buying your first home is a huge milestone!
👉 Pro tip: Schedule your move a few days after settlement to give yourself breathing room in case of delays.
Final Thoughts
Buying your first home doesn’t have to be overwhelming. By breaking the process into these five steps — budget, pre-approval, research, making an offer, and settlement — you’ll move forward with confidence.
At Madison Property, we specialise in guiding first home buyers through each stage of the journey. From understanding contracts to navigating finance and approvals, we make sure you feel supported — not overwhelmed.
Your dream of home ownership is closer than you think. All it takes is the right plan, the right support, and the right first step.