Start with the number, not the suburb
Before the property apps come out, work out what you can actually borrow. Lenders weigh your income, existing debts, HECS, and living expenses — and every lender calculates it differently, sometimes by six figures. Knowing your real range first means you search once, and you search honestly.
Your deposit — and the schemes that stretch it
Twenty percent is the textbook answer; it is not the only answer. Depending on your situation and state, some combination of these usually applies:
- The Home Guarantee Scheme — eligible buyers purchase with as little as 5% deposit and no LMI
- First Home Owner Grant on new builds, and stamp duty concessions that vary by state
- A family guarantee, using equity in a parent's property instead of cash
- Paying LMI deliberately — sometimes months of extra saving costs more than the premium
Pre-approval that actually holds
Not all pre-approvals are equal. A system-generated one takes minutes and means little; a fully assessed one, where a credit officer has verified your documents, is what holds up when you make an offer. Between pre-approval and purchase, keep the file steady: no new credit cards, no car loans, no job-hopping if you can help it.
Making the offer
- Private treaty: negotiate with a finance clause and a building-and-pest clause where you can
- Auction: unconditional the moment the hammer falls — your pre-approval and deposit must be ready before you raise a hand
- Deposit at exchange is typically 5–10% — it doesn't have to match your loan deposit
From contract to keys
Once the contract is signed, the loan moves to formal approval: valuation, final checks, loan documents. Your broker drives the timeline with the lender while your solicitor or conveyancer handles the legal side. Then settlement day — the money moves, and the keys are yours.