How to buy your first home

Planning to buy a house

Before you look for the perfect property it’s good to know what you can borrow and how much you’ll repay each month. Our online calculators use your income and expenses to help give a guide on your borrowing power.

Understand the costs of buying

• Lenders Mortgage InsuranceTooltip text for
   

  LMI is a one-off insurance payment which you may need to pay if you have a smaller deposit.

• Lending feesTooltip text for
   

  Costs like loan establishment, setup and annual fees may be added to your home loan. They may be a once-off fee or could be annual payments on the life of the loan.

• Stamp duty or transfer duty Tooltip text for
   

  Stamp duty, called transfer duty in Queensland, is a tax levied by all Australian territories and states on property purchases. The amount a buyer pays is based on the property purchase price, location and loan purpose. Some states charge different rates on investment properties than on places of residence.

• Moving costs 
• Legal and conveyancing fees
• Building and pest inspection
• Utilities and connection fees
• Home and Contents Insurance

Pre-approval

Once you have an idea on how much you can borrow, chat to a lending consultant and get pre-approval for your home loan. Securing pre-approval is a super smart move as it clarifies your borrowing power, what you’ll repay and helps you search for a house in your budget. Pre-approval is free and valid for up to 3 months. This gives you plenty of time and confidence to find your dream first house.

Get your first home loan

If you have pre-approval and you’ve found a house you love, getting a home loan is your next big step. After you complete the contract of sale, usually including time for finance approval and building and pest inspections, it’s time to get in touch with your bank and download the home loan application checklist. Once the bank completes all their checks you’ll get written confirmation you’re approved for your home loan.

Home loan interest rates

You’ll be able to choose whether you’d like a home loan with a fixed interest rate or variable rate. Each type of loan has its own pros and cons and both can save you a bit of money. If you’re after reassurance you know what you’ll be paying each month it may be worth locking in your interest rate. If you’re after flexibility and extra features, check out a variable loan. For a little more information read our page on home loan interest rates and pick the one best for you.

Owner occupied rates

Building and pest inspector

They'll check the house is in good nick and identify if there's any pest problems before you buy. If you get a conditional purchase inspection the same company may even give you a discount on treating pests once you're in the house. If you're not totally happy with the findings you could have the house remedied, buy it at a lower price, or decide not to go ahead with the purchase. It's a good idea to chat with your solicitor who can help you with this process.

Solicitor or conveyancer

These legal professionals act on your behalf, make sure the contract is complete and perform title checks so everything is legit.

Lending consultant

Your lending consultant will walk you through your home loan application. They'll get your home loan approved, set up your mortgage and will be your 'go-to' contact at your bank.

Movers

You may be able to do it all yourself or you can hire a mover and have reassurance you won’t be stuck lifting anything too heavy.

Home and Contents Insurance

Consider getting home and contents insurance once the contract goes unconditional. It’s this extra reassurance that helps if anything unexpected pops up.

What happens at settlement

When it comes to settlement there’s a few things to cover off. From real estate agents, solicitors, sellers and purchasers, there’s a lot of different parties who all will all work together on your purchase. On settlement day your bank will follow the direction of the solicitors and will transfer money from your bank account to the sellers account once all the conditions on the contract have been met. Once the funds have been transferred you’ll be able to pick up the key to your new home and start to move in!