Buying your first home: a 10-step guide
Buying your first home is a big milestone, and with the right preparation you can start out with confidence. From saving a deposit to signing contracts to getting home insurance, there’s a process to follow and it’s not always clear where to start.
This guide takes you through the key stages of buying a home in Australia, so you can feel more prepared.
1. Save for your deposit
Getting your deposit together is often the longest part of the process. But there’s nothing quite like that sense of achievement when you achieve your goal.
In 2026, there are a number of options available, including:
- Pay a minimum of 20% of the purchase price
- Pay less than 20% of the purchase price with lenders’ mortgage insurance (LMI), often available through home loan providers
- Pay 5% deposit through the Australian Government 5% Deposit Scheme after you’ve determined you’re eligible
You could also look into making voluntary super contributions to save for your deposit through the First Home Super Saver Scheme.
It’s worth remembering that the higher your deposit, the less interest you’re likely to pay on your home loan in the long run.
Related article: LMI – everything you need to know
2. Get home loan pre-approval
Pre-approval (also called conditional approval) means a lender has agreed in principle to lend you a certain amount. That way, you’ll have an idea of your budget.
Why it matters:
- Gives you a clear price range
- Shows sellers you’re a serious buyer
- Helps speed up the buying process
Keep in mind, pre-approval typically lasts 3-6 months and is subject to final checks.
3. Start your property search
Once you know your budget, you can start looking for a home – the most exciting part of the process.
What to think about:
- Location (commute, schools, amenities)
- Property type (house, apartment, townhouse)
- Future needs (space, family plans, pets)
- Market conditions in your area
You can search online, attend open houses, and work with a broker or real estate agent.
4. Do your research and inspections
Before making an offer, it’s important to understand exactly what you’re buying in terms of structure and potential repairs.
Essential checks:
- Building inspection (houses): Identifies structural issues or damage
- Strata report (apartments): Covers shared buildings and finances
- Pest inspection: Looks for termites and other pest infestations
Skipping this step could lead to unexpected and costly repairs later.
5. Make an offer or bid at auction
How you buy depends on the property’s sale method. In Australia, there are two common methods.
Private sale:
- The seller sometimes sets a price as a guide
- Buyers submit a written offer, sometimes with conditions, e.g. subject to finance
- You negotiate with the seller
Auction:
- Set a maximum bid you can afford
- Consider asking a family friend or agent to bid on your behalf
- If successful, you typically sign the contract immediately and pay a deposit
- If you have your heart set on the property, you can make an offer before the auction, and if the seller accepts it, the auction will be cancelled
- If the property is passed in, the highest bidder can usually negotiate with the seller
TIP: Auctions in Australia are usually unconditional, meaning you can’t back out without penalties.
6. Review and sign the contract
The contract of sale is a legally binding document. It’s important to read it very carefully.
Before signing:
- Have a conveyancer or solicitor review it
- Check for special conditions or clauses
- Understand your cooling-off period (if applicable in your state)
Once you sign, you’ll usually pay a deposit (often 5–10%).
7. Finalise your home loan
After signing the contract, your lender will complete the full loan approval process.
This includes:
- Property valuation
- Final financial checks
- Loan documentation
Once approved, your lender will prepare to release the funds on the settlement date. Keep in mind you’ll need to pay stamp duty and LMI, if applicable.
8. Arrange home insurance
Home insurance is a key step that sometimes gets overlooked.
Why it matters:
- Covers your property for events like fire, storms or theft
- It can cover all your valuables through contents insurance
- Many lenders require insurance before settlement
TIP: In some states, you may be responsible for the property from the contract date – not settlement – so check when your home insurance should start.
Depending on your needs, you may choose:
- Building insurance (for the structure)
- Contents insurance (for your belongings)
- Home and contents insurance (to cover both)
See these sum insured calculators for an estimate of home insurance.
9. Settlement and moving in
Settlement is when ownership officially transfers to you.
What happens:
- Your lender pays the seller
- Legal documents are finalised
- You receive the keys
Settlement usually happens 30-90 days after signing the contract, depending on what’s agreed.
10. Budget for ongoing costs and maintenance
Owning a home comes with ongoing responsibilities. Setting aside a buffer can help you manage unexpected expenses.
Common costs include:
- Mortgage repayments
- Council rates and water bills
- Repairs and maintenance
- Insurance premiums
Taking the time to understand each step, asking questions and getting professional advice can help make the process smoother. At the heart of it, QBE is here to support you on your journey to protecting your first home.
