Buying your first home in Australia is one of the biggest financial decisions you'll ever make — and one of the most confusing. There are dozens of steps, and missing even one can cost you thousands of dollars or months of delays.
This is the checklist we wish someone had given us when we started. It covers every stage from saving your deposit to collecting the keys on settlement day. No fluff, no jargon — just a straight, honest list of everything you actually need to do.
Stage 1: Deposit Savings Checklist
Before you even start browsing properties, you need your finances sorted. Here's what to tick off:
- Set a realistic savings target. Most lenders want at least 5% of the purchase price as a genuine deposit — but 20% avoids Lenders Mortgage Insurance (LMI), which can add $10,000–$40,000 to your costs. Use NestPath's free calculator to find out exactly what you can afford based on your real income and expenses.
- Open a dedicated savings account. Keep your deposit separate from everyday spending. A high-interest savings account with no card attached works best.
- Reduce unnecessary debt. Pay off credit cards, Afterpay, Zip, and any buy-now-pay-later balances. Lenders count these limits against your borrowing capacity even if the balance is zero.
- Check your credit report. Get a free copy from Equifax or illion. Dispute any errors before you apply for a loan — mistakes on your report can lower the amount a bank will lend you.
- Research government grants. Depending on your state and whether you're buying new or established, you may be eligible for the First Home Owner Grant, stamp duty concessions, or the First Home Guarantee scheme. Check NestPath's grants page for a state-by-state breakdown.
- Track your savings consistently. Three months of regular savings history is the minimum most banks want to see. Six months is better.
Stage 2: Pre-Approval Checklist
Pre-approval (also called conditional approval) tells you how much a bank is willing to lend you before you start making offers. It's not a guarantee, but it gives you a clear budget and shows sellers you're serious.
- Gather your documents. You'll need at least two recent payslips, your latest tax return or Notice of Assessment, bank statements showing your savings, ID (passport or driver's licence), and details of any existing debts.
- Choose a lender or broker. A mortgage broker compares loans from multiple lenders for you — they're paid by the bank, not by you. If you go direct to a bank, you'll only see their products.
- Understand your borrowing capacity. What the bank approves and what you can comfortably repay are two different numbers. NestPath shows you both — the bank maximum and the comfortable amount — so you don't end up house-poor.
- Get pre-approval in writing. Make sure you receive a formal pre-approval letter with the amount, any conditions, and the expiry date (usually 90 days).
- Don't change your financial situation. Avoid switching jobs, taking on new debt, or making large unexplained deposits while your pre-approval is active. Any of these can cause the bank to reassess or withdraw approval.
Stage 3: Property Inspection Checklist
Once you're pre-approved and start inspecting properties, here's what to look for — and what to organise before making an offer.
- Book a building and pest inspection. This is non-negotiable. A qualified inspector will identify structural issues, termite damage, plumbing problems, and anything that could cost you thousands after settlement. Budget $400–$700 for a combined report.
- Check flood, bushfire, and zoning risk. Use official government portals to verify whether the property is in a flood zone, bushfire-prone area, or has any planning overlays that could restrict renovations. NestPath's free property report links you directly to the correct government portal for your state.
- Research the suburb. Look at median prices over the last 12 months, rental yields, days on market, and planned infrastructure. A suburb with a new train line or school planned nearby can see significant growth.
- Inspect at different times. Visit the property on a weekday evening and a weekend morning. Check noise levels, traffic, parking availability, and how the light falls through the house at different times of day.
- Ask the agent the right questions. How long has it been on the market? Why is the owner selling? Are there any known issues with the property? Have there been any previous offers? You're allowed to ask — and a good agent will answer honestly.
Stage 4: Offer and Contract Checklist
Making an offer is where things get legally binding. Take your time and get professional advice.
- Hire a conveyancer or solicitor. They review the contract of sale, check for hidden clauses, verify the title, and handle the legal transfer. Budget $1,000–$2,500 depending on your state and complexity.
- Review the Section 32 or vendor statement. This document (called different things in different states) discloses everything the seller is legally required to tell you — title details, easements, council rates, zoning, and any known defects.
- Include a cooling-off clause. In most states (except at auction), you have a cooling-off period of 2–5 business days after signing. During this time, you can withdraw from the contract — usually with a small penalty of 0.25% of the purchase price.
- Make your offer subject to finance and inspection. These conditions protect you if the bank doesn't approve the loan or the building inspection reveals major problems.
- Pay the deposit. Once the contract goes unconditional, you'll need to pay the agreed deposit — usually 10% of the purchase price. This is held in a trust account until settlement.
Stage 5: Settlement Checklist
Settlement is the final stage — when ownership officially transfers from the seller to you. It typically happens 30–90 days after the contract goes unconditional.
- Confirm your loan is formally approved. Pre-approval is not final approval. Your lender will do a property valuation and final checks before issuing formal (unconditional) approval. Chase this up early — delays here are the number one cause of settlement extensions.
- Organise home and contents insurance. You need insurance from settlement day — not move-in day. If the property is damaged between settlement and when you move in, you're financially responsible.
- Do a final pre-settlement inspection. Walk through the property 1–2 days before settlement. Check that everything included in the contract is still there (appliances, fixtures), that no new damage has occurred, and that the property is in the same condition as when you signed.
- Set up utilities and mail redirection. Organise electricity, gas, water, internet, and council rates in your name from settlement day. Connect utilities at the new address at least a week out — same-day connection can cost $150+ in fees. Set up mail redirection with Australia Post so nothing gets lost.
- Book your removalist 2+ weeks ahead. Weekend slots book out first, especially in capital cities. A professional removalist costs $800–$2,500 depending on volume and distance — a fraction of the cost of back-and-forth trips in a ute. Confirm the booking the week before settlement once your formal approval is in writing.
- Collect the keys. On settlement day, your conveyancer will confirm that funds have been transferred and the title is registered in your name. Then you collect the keys — usually from the real estate agent's office.
The Bottom Line
Buying your first home doesn't have to be overwhelming if you break it down into stages. Start with your finances, get pre-approved, inspect thoroughly, negotiate carefully, and prepare for settlement. Each step builds on the last.
If you're not sure where you stand financially, NestPath's free borrowing capacity calculator gives you an honest picture in under two minutes — no email required, no sales pitch. Just the numbers you actually need to start your journey with confidence.
