First Home Buyers Guide to Buying a Home

Buying your first home is both a stressful and exciting experience. While you'll eventually get to live in your dream home, you'll still have to go through a lot of red tape before your lender hands over the keys. To make sure the home buying process goes off without a hitch, follow our guide.

Step 1: What Can You Afford?

Create a budget that helps you figure out the size of your monthly payments and the loan terms. Australians may start online with a home insurance comparison because your premiums are determined by the size of your home and how you wish to cover it. Then, you'll need to add up extra costs like conveyancing fees, stamp duty, inspection rates, fees, or hourly payment. 

New homeowners will qualify for concessions or grants, like the First Home Owner Grant, which gives you access to homes that were previously out of your budget.

Step 2: What is Your Deposit?

A higher deposit is better than the minimum, so if you can put away enough money towards a 20% down payment, you'll be graciously rewarded by not having to pay the lender's mortgage insurance. To earn more money faster, set up a savings account or term deposit and slowly add $30,000 in savings, if possible, to cover other additional costs related to your home purchase.

Step 3: Where Can I Shop For a Home?

Plenty of places in Australia, offline and online, help you search for new homes on the market. New home buyers can attend property auctions or private sales in their area. For example, the weekly auction results will provide data on which homes are available to buy.

Step 4: Which Service Providers Will I Need?

When buying a home, you'll need to research the following service providers:

• Mortgage broker, buyer's agent, financial adviser
• Loan rates, loan products, lenders fees
• Solicitors and conveyancers
• Accredited inspectors for building or homes

You'll need one from each category to complete the sale of your home.

Step 5: How Do I Prepare for Purchase?

To prepare for the purchase of your home, you'll need to attend your inspections and gather your paperwork. The way you conduct this step is determined by how you purchase your property.

• Attend Inspections: Search the properties yourself thoroughly, but bring a third party to provide an unemotional second opinion. Drive to and from your work to ensure this location works. Finally, book time off to attend a professionally led inspection.
• Prepare Paperwork: Auctions require a pre-approved loan, or they can't be sold to you. Regardless of how you buy your home, you'll need an information statement from buyers' and sellers' agents. Gather documentation you'll need to apply for a home loan, like payslips, proof of identity, and tax returns. Ensure your deposit is available.

If your property weren't purchased at a public auction, you would receive cooling-off rights, which gives you time to consider an offer. If you decide not to take the property, you must provide written notice.

Step 6: How Do I Make an Offer and Complete the Settlement?

Please speak to the seller or their agent directly to start the negotiation process. From there, you can negotiate a settlement period, provide your deposit, and set your move-in date. To finalize the settlement, you need to complete a final inspection, purchase all of your remaining home insurance, and pay your land transfer fees or stamp duties before you sign the contract.

Step 7: How Do I Take Ownership of the Home?

After taking possession of your home, you still need to do the following:

• Arrange water, gas, electricity, Internet, and other utilities
• Get the keys from the previous owner and change the locks
• Move-in and begin making the regular mortgage payment

To make the move-in process smoother, we suggest hiring movers or removers.