First Home Buyers Checklist
Use this step-by-step first home buyers checklist to prepare your finances, understand your deposit options, obtain pre-approval, find a property and move through formal approval and settlement with fewer surprises.
Printable first home buyers checklist
Tick each item as you progress. The detailed sections below explain what each step involves and where professional advice may be required.
How to use this first home buyer checklist
Buying a first home is not one decision. It is a sequence of financial, lending, legal and practical steps. Completing them in the right order can help you avoid inspecting properties outside your range, signing a contract before finance is ready or discovering missing documents late in the process.
Begin with your finances and deposit, then prepare your documents and compare lending options. Pre-approval can be considered before you make offers, but it remains conditional. Once you select a property, your conveyancer and lender complete separate legal and finance checks before settlement.
You can return to this page throughout the purchase and tick off the quick checklist above.
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Step 1: Engage a mortgage broker and check your borrowing capacity
Engage a mortgage broker early to accurately assess your borrowing capacity before you start looking at properties. Your broker can review your income, living expenses, debts, credit limits, dependants and available deposit to determine a realistic borrowing capacity and property budget.
- Engage a mortgage broker to assess your actual borrowing capacity.
- List all income sources and ongoing commitments.
- Check credit card limits, personal loans, car finance and buy-now-pay-later accounts.
- Estimate repayments at a level that leaves room for normal living costs and unexpected expenses.
Step 2: Set a realistic property budget
Your maximum borrowing capacity and your comfortable budget are not necessarily the same.
- Allow for repayments, council rates, owners corporation fees where relevant, insurance and maintenance.
- Keep a cash buffer instead of using every available dollar.
- Research current prices in the suburbs and property types you are considering.
Step 3: Review your credit history
Your credit report can identify existing facilities, repayment history and errors that may need to be addressed before applying.
- Obtain a copy of your credit report.
- Check that listed accounts and limits are accurate.
- Pay commitments on time and avoid unnecessary new credit enquiries.
Step 4: Build and verify your deposit
The deposit may come from genuine savings, funds held in an account, an eligible gift, a grant, sale proceeds or other acceptable sources, depending on lender policy.
- Keep a clear record showing where the funds came from.
- Avoid unexplained large deposits or transfers.
- Confirm whether the lender requires genuine savings held for a minimum period.
Step 5: Budget for purchasing costs
The deposit is only one part of the money required to complete a purchase.
- Allow for transfer duty, conveyancing, inspections, insurance, loan fees and settlement adjustments.
- Ask your conveyancer to estimate the transaction costs.
- Keep funds available for moving, urgent repairs and initial household expenses.
Step 6: Check government assistance
Government assistance may reduce upfront costs, but eligibility rules and property limits apply.
- Review the Australian Government 5% Deposit Scheme.
- Check the First Home Owner Grant rules in the state or territory where you are buying.
- Ask your conveyancer about any transfer duty exemption or concession.
Step 7: Prepare your home loan documents
Complete and up-to-date information can help reduce delays and allow the lender to assess the application properly.
- Prepare current identification.
- Collect recent payslips or self-employed income documents.
- Provide bank statements, savings evidence, liabilities and living expense information.
Step 8: Compare suitable lenders and loan structures
The lowest advertised rate is not automatically the most suitable option.
- Compare lender policy as well as rate and fees.
- Consider offset, redraw, fixed, variable and split options.
- Check whether the lender accepts your employment, deposit source and proposed property.
Step 9: Apply for pre-approval
Pre-approval can provide a clearer purchasing range before you make an offer.
- Submit complete supporting documents.
- Avoid material changes to employment, debts or expenses after approval.
- Confirm the approval period and any conditions.
Step 10: Research and inspect properties
Compare recent sales, inspect carefully and look beyond presentation or styling.
- Research the area, transport, services and likely ongoing costs.
- Check the title, owners corporation information and property condition where relevant.
- Consider an independent building and pest inspection.
Step 11: Engage a conveyancer
A conveyancer or solicitor handles the legal side of the purchase and should review the contract before you commit where possible.
- Choose a conveyancer before you are ready to make an offer.
- Send them the contract and vendor documents for review.
- Ask them to explain finance conditions, settlement dates and special conditions.
Step 12: Make an offer or bid at auction
Understand the contract, deposit requirement and whether the offer is conditional before proceeding.
- Confirm your maximum price in advance.
- Obtain legal advice about any finance condition.
- Do not assume pre-approval guarantees finance for the selected property.
Step 13: Obtain formal loan approval
After a property is selected, the lender completes the remaining assessment and confirms whether the property is acceptable security.
- Provide the signed contract promptly.
- Respond quickly to requests for updated documents.
- Do not take on new debt or change employment without checking the impact.
Step 14: Prepare for settlement
Once the lender conditions have been satisfied, loan documents, insurance and contribution funds must be ready.
- Sign and return loan documents correctly.
- Confirm insurance requirements and timing.
- Arrange the final inspection and ensure your contribution funds are accessible.
Step 15: Settle, move in and review the loan
At settlement, ownership and funds are transferred. After moving in, keep records and review the loan periodically.
- Confirm settlement completion before collecting keys.
- Set up repayments and monitor the first payment.
- Review the loan when rates, goals or circumstances change.
Common mistakes first home buyers should avoid
Searching before setting a budget
Property searches can become unrealistic when the financial assessment has not been completed first.
Using every dollar for the purchase
Leaving no financial buffer can make moving costs, repairs and unexpected expenses difficult to manage.
Forgetting costs outside the deposit
Transfer duty, legal work, inspections, insurance and settlement adjustments may require additional funds.
Assuming pre-approval is unconditional
The lender must still accept the selected property and may require updated information before formal approval.
Opening new credit before settlement
A new credit card, personal loan, car loan or buy-now-pay-later facility can negatively affect borrowing capacity and approval.
Changing employment without checking
Changes to employer, probation, hours or income structure may affect lender policy.
Signing before obtaining legal advice
A conveyancer or solicitor should explain the contract and the effect of any finance or special conditions.
Choosing a loan by rate alone
Lender policy, fees, features and loan structure should be considered together with the interest rate.
First home buyer tools and related information
First home buyers checklist FAQs
What should a first home buyer do first?
Start by engaging a mortgage broker to review your income, expenses, existing debts, deposit and likely purchasing costs. A borrowing capacity assessment can help establish your actual borrowing capacity and a realistic property budget before you begin making offers.
How much deposit does a first home buyer need?
The required deposit depends on the lender, property and whether you qualify for a government scheme or family guarantee. Some eligible buyers may purchase with a deposit from 5%, subject to lender policy and eligibility.
What other costs should I budget for?
Costs may include transfer duty, conveyancing, building and pest inspections, loan fees, valuation costs, insurance, settlement adjustments and moving expenses. The amounts vary by state, property and transaction.
Should I get pre-approval before inspecting properties?
You can inspect properties before pre-approval, but obtaining a borrowing assessment and pre-approval before making offers can help you stay within a realistic range and identify lending issues earlier.
Does pre-approval guarantee the loan?
No. Pre-approval is conditional. Final approval may depend on updated financial information, a satisfactory valuation, lender acceptance of the property and completion of any outstanding conditions.
How long does pre-approval usually last?
Many lender pre-approvals are valid for approximately 90 days, although the period and renewal process vary between lenders.
When should I engage a conveyancer?
It is sensible to identify a conveyancer early and engage them once you find a property, preferably before signing a contract or making an unconditional offer. They can review the contract and explain the legal obligations.
Should I make an offer subject to finance?
A finance condition may provide important protection, but contract wording and auction rules vary. Obtain independent legal advice from your conveyancer or solicitor before signing or waiving any condition.
Can I buy at auction with pre-approval?
Pre-approval does not guarantee final approval and auction contracts are generally unconditional. Before bidding, confirm your financial position and obtain legal advice about the contract and auction risks.
What is lenders mortgage insurance?
Lenders mortgage insurance, or LMI, generally protects the lender when a loan exceeds its preferred loan-to-value ratio. It may be payable upfront or added to the loan, subject to lender policy.
Can I use the Australian Government 5% Deposit Scheme?
Eligible first home buyers may be able to purchase through a participating lender with a minimum 5% deposit and no LMI. Current eligibility rules, property price caps and lender approval apply.
Can I receive a First Home Owner Grant?
First Home Owner Grant rules vary between Australian states and territories. Eligibility can depend on the property type, value, residency requirements and other current criteria.
Do first home buyers pay stamp duty?
Transfer duty exemptions and concessions vary between states and territories. Your conveyancer or solicitor should confirm the amount and any benefit that applies to your purchase.
What documents should I prepare?
Common documents include identification, payslips or self-employed income evidence, bank statements, savings history, details of liabilities, living expenses and evidence showing the source of your deposit.
Can changing jobs affect my application?
Yes. A change in employer, probation status, hours, industry or income structure can affect lender acceptance. Check the likely impact before making a change during the application process.
Can new credit affect approval?
Yes. A new credit card, personal loan, car loan or buy-now-pay-later facility can negatively affect borrowing capacity and may change the outcome before settlement.
When do I arrange building insurance?
The required start date depends on the contract, state or territory and lender. Confirm the timing with your conveyancer, insurer and lender rather than waiting until settlement day.
What happens before settlement?
Your lender and conveyancer complete final checks, arrange funds and coordinate settlement. You may also complete a final inspection and confirm insurance and contribution funds are ready.
Should I review the loan after settlement?
Yes. Review the loan periodically and when your circumstances change. Check the interest rate, fees, features and whether the structure still suits your goals.
When should I speak with a mortgage broker?
Speak with a mortgage broker as early as possible, ideally as your first step before you start looking at properties. Knowing your actual borrowing capacity first allows you to set a realistic property budget, review deposit options, prepare your documents and compare suitable lenders before making offers.
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