First Home Buyer Checklist Australia

Lenders assess your income, existing debts, credit card limits, and living expenses against a serviceability buffer set by APRA. The number the calculator spits out and the number a lender will actually approve can differ by tens of thousands of dollars. Run the numbers before you set a budget.

The deposit is not the only upfront cost. Stamp duty, conveyancing fees, building and pest inspections, and lender fees all come out of your savings before or at settlement. Buyers who budget only for the deposit often scramble at the last minute or have to renegotiate their loan.

The FHSS scheme lets you save inside super using concessional tax rates, then withdraw those contributions plus associated earnings to put toward your deposit. There are annual and total contribution caps, and you must apply for a determination from the ATO before signing a contract. The earlier you start contributing, the more you can withdraw.

From 1 October 2025, Housing Australia removed the annual cap on places and the income caps from the First Home Guarantee, and raised property price caps across most of the country. For example, the cap for Sydney and other NSW capital cities and regional centres rose to $1,500,000. There are no longer a limited number of spots to compete for each year, but property price caps still vary by location, so check the current caps for your city or region on the Housing Australia website before you assume you qualify.

Grant amounts, property price caps, and stamp duty exemption thresholds vary significantly by state and territory, and the rules change. New South Wales, Victoria, Queensland, Western Australia, and South Australia each have their own scheme with their own eligibility criteria. Go to your state revenue office directly for the current figures rather than relying on a summary that may be out of date.

A mortgage broker can compare products across multiple lenders and handles much of the paperwork. Going direct to a bank is faster if you already bank there and your situation is straightforward. Either way, get a written pre-approval before you start making offers. Verbal pre-approvals are not binding.

LMI is charged when your deposit is below 20 per cent of the purchase price and you are not covered by a government guarantee scheme. It protects the lender, not you, and it is not a small fee. On a median-priced property it can run into the thousands. Knowing the number upfront helps you decide whether to save longer, use a guarantor, or accept the cost.

Fixed rates give certainty on repayments for a set term but usually limit extra repayments and come with break costs if you exit early. Variable rates move with the market and typically allow offset accounts and unlimited extra repayments. A split loan hedges both. The right structure depends on your cash flow, risk tolerance, and how long you plan to hold the property.

Your lender will stress-test your repayments at a rate above the loan rate, typically around 3 percentage points higher, as required by APRA. You should do the same exercise yourself. Knowing what your repayments look like if rates rise by 1 or 2 percentage points stops you from overcommitting on a property that only works at today's rate.

A conveyancer reviews the contract of sale, checks the title for encumbrances, handles the legal transfer, and coordinates with your lender on settlement. In most states you cannot safely sign a contract without one. Engaging them before you find a property means you are not scrambling when you need a contract reviewed in 24 hours.

A building and pest inspection can reveal structural defects, rising damp, termite activity, or non-compliant additions that are invisible at an open home. If serious issues are found after you go unconditional, you own them. The inspection typically costs a few hundred dollars. That is cheap compared to a six-figure repair bill or a failed renegotiation.

A strata report shows the owners corporation's financial health, any outstanding special levies, pending major works, and the history of disputes. A building with a depleted sinking fund and a leaking roof is a liability that will cost you money the moment you settle. Your conveyancer can help you interpret what you are reading.

Agents work for the vendor. The price guide at an auction is not a neutral estimate of value. Reviewing recent comparable sales in the same suburb, or paying for an independent valuation, gives you a ceiling you can defend when the bidding gets emotional. Overpaying at auction is legally binding and immediately irreversible.

Pre-approval is conditional. Full approval requires the lender to value the specific property, verify your income again, and assess the contract. Delays in providing payslips, tax returns, or bank statements can push you past the finance clause deadline in your contract, which can cost you your deposit.

Stamp duty is calculated on the purchase price or the property's dutiable value, and first home buyer exemptions and concessions have price caps that vary by state. A property just above the cap can mean a duty bill of tens of thousands of dollars with no concession. Check the figure before you commit, not after.

When risk passes from vendor to buyer depends on your state and the specific contract. In Queensland, for example, risk under a standard contract passes to the buyer from 5pm on the first business day after the contract date, while Victoria's standard contract keeps the property at the vendor's risk until settlement. Your conveyancer will confirm the date that applies to your contract. Your lender will also require proof of building insurance before releasing funds, so do not leave this to the last minute.

An offset account sits alongside your variable home loan and reduces the balance on which interest is calculated, dollar for dollar. Keeping your salary and savings in an offset account rather than a separate savings account can save a meaningful amount of interest over the life of the loan. Not all loan products include one, so confirm with your lender before you settle.

The final inspection confirms the property is in the same condition as when you signed the contract, all inclusions listed in the contract are still there, and the vendor has not removed fixtures or caused damage during their move. If something is wrong, you have a window to raise it with your conveyancer before funds are released.