Buying your first home in Australia is one of the biggest financial decisions you'll ever make. It's also one of the most confusing — largely because nobody explains the process clearly until you're already in the middle of it.
This guide covers every step, in order, in plain English.
Step 1: Know What You Can Afford
Before you look at a single property, you need to understand two numbers: what banks will lend you, and what you can actually afford to repay comfortably. These are almost always different figures — and confusing them is one of the most common mistakes first home buyers make.
Your borrowing capacity depends on your income, your existing debts, your living expenses, and your deposit. Use NestPath's free borrowing power calculator to get your honest number before you fall in love with anything.
Then calculate your true upfront costs — the purchase price is just the beginning. Stamp duty varies by state (use the stamp duty calculator); conveyancing runs $800–$2,500; building and pest inspection $400–$800; title transfer and mortgage registration $500–$1,000; and if your deposit is under 20%, Lenders Mortgage Insurance can add $10,000–$30,000. Budget 3–5% of the purchase price on top of your deposit for these costs.
Step 2: Understand Grants and Schemes
Australian first home buyers have access to multiple government schemes that can save tens of thousands of dollars. Every state and territory has its own First Home Owner Grant and stamp duty concessions, plus there are federal schemes that apply everywhere.
First Home Owner Grant amounts vary by state — see the exact numbers, eligibility and thresholds on your state page: NSW grants, Victoria grants, Queensland grants, WA grants, SA grants, ACT grants.
First Home Guarantee (FHBG) — buy with just 5% deposit and pay zero LMI. No income caps since October 2025.
First Home Super Saver Scheme — withdraw up to $50,000 per person from superannuation for your deposit, with significant tax benefits.
Step 3: Find a Mortgage Broker
A good broker is the single most valuable person in your first home buying team. Brokers are paid by the lender (not by you), so the service is free — and a broker has access to 30+ lenders compared to a bank, which only offers its own products.
Brokers also know which lenders are most favourable for your specific situation: if you have HECS debt, variable income, a 5% deposit under FHBG, or buying off the plan, different lenders will accept or reject your application based on criteria that are not public. A broker will find the right one first time without multiple credit checks.
Find a NestPath vetted mortgage broker — all our brokers are licensed, independent, and reviewed by real Australian first home buyers. Before you apply, see our best home loan rates Australia 2026 guide for the rate ranges you should be aiming at and what a competitive offer actually looks like in the current market.
Step 4: Get Pre-Approved
Pre-approval means a lender has assessed your finances and agreed in principle to lend you a specific amount. It typically lasts 3 to 6 months and gives you confidence to make offers knowing the finance is lined up.
Read our full pre-approval guide for exactly what documents you'll need, how long it takes, and the three most common reasons pre-approvals are declined.
Important: Do not apply for pre-approval with multiple lenders simultaneously. Every application leaves a mark on your credit file and multiple applications can damage your credit score significantly. This is another reason to go through a broker — they find the right lender once instead of shopping your application around.
Step 5: Find Your Property
With pre-approval in hand, you can search with confidence. A few things most first home buyers learn the hard way:
Set your search budget 10 to 15 percent below your maximum borrowing capacity. Properties regularly sell above asking price, especially at auction. Research suburbs before inspecting — look at median prices, growth trends, proximity to work, schools, and public transport. Attend multiple inspections before making any decisions; your eye gets better with every property you walk through.
Also consider buying off the plan — newly built apartments and townhouses often come with lower stamp duty (Victoria and NSW have significant concessions), the full First Home Owner Grant (established homes don't qualify in most states), and extended settlement periods that let you keep saving. The trade-offs and risks are different — read our complete off-the-plan guide before signing anything.
A third path worth pricing: building a house from scratch on a block of land, either as a house and land package from a volume builder or with your own builder on a titled block. New builds attract the most generous first home buyer grants (up to $30,000 in Queensland) and stamp duty usually applies only to the land component. Read our complete guide to building a house in Australia for the 2026 cost breakdown, the 5 construction stages, and how construction loans differ from standard home loans. If you haven't locked in a block yet, start with our guide to buying land in Australia — zoning, easements, soil tests, and titled vs untitled are where first-home builders most commonly get caught.
Step 6: Building Inspection
Before making an offer on any established property, get a building and pest inspection. This costs $450 to $900 and can save you from buying a property with structural issues, water damage, or termite problems that could cost tens of thousands to fix.
A qualified inspector will check the roof, walls, flooring, plumbing, electrical, and structural integrity, as well as evidence of termites and moisture damage. You'll get a written report with photos highlighting every issue — which you can use to renegotiate the price or walk away entirely.
Find a licensed building and pest inspector — NestPath's inspector directory covers every state and every inspector is qualified and insured. Never skip this step. We cannot stress this enough.
Step 7: Hire a Conveyancer
A conveyancer (or solicitor, if you prefer) handles the legal transfer of ownership from the seller to you. They review the contract of sale, check title, search for easements and encumbrances, confirm rates and land tax are up to date, manage the deposit, and coordinate settlement with your lender. Fees typically run $800 to $2,500 depending on complexity.
Engage your conveyancer BEFORE you make an offer. Why: contracts of sale contain clauses that can make or break your purchase — cooling-off periods, subject-to-finance conditions, subject-to-inspection conditions, special conditions around inclusions (dishwasher? blinds? light fittings?) — and amending them after signing is much harder than getting them right the first time.
Find a NestPath vetted conveyancer — licensed in your state, experienced with first home buyer transactions, and transparent on fees.
Step 8: Get Home Insurance
Your lender will require building insurance to be in place from the day of settlement — some require it from the day of exchange. Most first home buyers bundle building + contents + landlord insurance together for a discount.
Shop around: premiums for the same coverage can vary by $600–$1,200 per year between insurers. Factors that drive your premium: property age, construction type (weatherboard vs brick), flood and bushfire risk zones, security (alarm, deadlocks), and claims history.
Compare home insurance options through NestPath — designed specifically for first home buyers, with coverage that kicks in before your keys.
Step 9: Make an Offer, Exchange, and Settle
Making the offer — by private treaty you submit a written offer that can include conditions (finance, inspection). At auction you bid publicly and contracts are unconditional, so only bid if you already have pre-approval and inspection done.
Exchange of contracts — you pay a 5–10% deposit and are legally bound to the purchase. Do not sign without your conveyancer reviewing the contract first.
Settlement period (4–6 weeks after exchange) — your conveyancer handles the legal transfer, your lender prepares the loan, and you organise the move. Complete a final inspection the day before settlement to confirm the property is in the same condition as when you signed.
Settlement day logistics: on settlement morning your conveyancer attends the online settlement, funds are transferred, and legal ownership changes hands (usually mid-afternoon). Then you get your keys. For a hour-by-hour breakdown of what happens on the day, read our property settlement guide.
A few things to arrange in the final week: connect electricity, gas and internet for the settlement date (or the day after if you're moving in later). Book a removalist — find a licensed removalist at least 2 weeks in advance as weekend slots book out fast in capital cities.
Common Mistakes First Home Buyers Make
Every year thousands of Australian first home buyers lose $10,000–$30,000 to mistakes that were entirely avoidable. The most expensive ones: not getting pre-approval before auction (unconditional bid on a property you can't finance), skipping the building and pest inspection, signing a contract of sale without a conveyancer reviewing it, underestimating stamp duty and buying costs, and applying for pre-approval with five lenders at once (tanking your credit score).
See the full list of 10 first home buyer mistakes to avoid — with real examples of what each one costs and exactly how to sidestep them.
Start your home buying journey the right way. Use NestPath's free borrowing power calculator to find out exactly what you can afford, then talk to a vetted broker for free to lock in the right loan structure.
One thing to diarise for 2–3 years after you settle: check that your home loan is still competitive. Existing-customer rates drift 0.4–0.8% above new-customer rates over time, and a simple refinance can save around $200/month on a $500,000 loan. It is the single highest-impact financial move most homeowners forget to make.
Frequently Asked Questions
How do I buy a house in Australia as a first home buyer?
The nine steps: (1) calculate what you can afford with a borrowing power calculator, (2) check every grant and scheme your state offers, (3) find a mortgage broker, (4) get pre-approved, (5) find and research your property, (6) book a building and pest inspection, (7) hire a conveyancer to review the contract, (8) arrange home insurance before exchange, (9) make an offer, exchange contracts, and settle 4–6 weeks later. Most first home buyers complete the full process in 3 to 6 months from starting to collecting the keys.
How much deposit do I need to buy a house in Australia?
The standard benchmark is 20% to avoid Lenders Mortgage Insurance (LMI), but with the federal First Home Guarantee you can buy with just 5% and no LMI. Single parents can buy with 2% under the Family Home Guarantee. You also need 3–5% of the purchase price for additional costs like stamp duty, legal fees, inspections and lender application fees.
What grants are available for first home buyers in Australia?
Every state and territory has a First Home Owner Grant for new builds, ranging from $10,000 (NSW, VIC, WA) to $30,000 (QLD). Most states also offer full or partial stamp duty exemption for first home buyers under specific price thresholds. Federally, the First Home Guarantee lets you buy with 5% deposit and no LMI, and the First Home Super Saver Scheme lets you withdraw up to $50,000 from super for your deposit. See grants pages for NSW, VIC, QLD, WA, SA, and ACT.
Do I need a mortgage broker to buy a house?
You don't legally need a broker, but most first home buyers who use one say it was the single highest-value decision they made. Brokers are free (paid by the lender), have access to 30+ lenders, and know which lenders are best for your specific situation — HECS debt, variable income, low deposit, off the plan. Going direct to a bank limits you to that bank's products and their internal policies, which may not be the best fit.
How long does it take to buy a house in Australia?
Typically 3 to 6 months from first research to settlement day. Breakdown: 2–4 weeks to sort pre-approval with a broker; 4–12 weeks to find the right property; 4–6 weeks from exchange to settlement. It can be faster if you find a property quickly and have pre-approval in place, or much longer if you're buying off the plan (construction can take 12–36 months from signing to settlement).
What are the hidden costs of buying a house?
Beyond deposit and stamp duty: conveyancing ($800–$2,500), building and pest inspection ($400–$800), LMI if deposit is under 20% ($10,000–$30,000), title transfer and mortgage registration ($500–$1,000), loan application fees ($0–$800), home insurance (first year upfront), removalist costs ($500–$3,000), utilities connection fees, and council and water rates adjustments at settlement. Budget 3–5% of the purchase price for these costs on top of the deposit.
