First Home Buyer Checklist
A practical month-by-month checklist covering everything from savings and grants to inspection, contracts and settlement.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
Step 1.Six Months Out — Get Your Finances Audit-Ready
Lenders scrutinise three months of bank statements, so start cleaning up your spending six months before you apply. Cut any buy-now-pay-later accounts (Afterpay, Zip) because lenders count them as active credit facilities even if the balance is zero. Pay down or close unused credit cards — every dollar of credit limit reduces your borrowing capacity by roughly $4. Get a free credit report from Equifax or Illion and dispute any errors. Check that your employment history is stable — most lenders prefer 6-12 months in your current job. Build a clear pattern of saving regularly into a high-interest account so statements show consistent genuine savings, which most lenders require as proof you can service a mortgage.
Step 2.Know Every First Home Buyer Benefit You Qualify For
First home buyer benefits stack, and missing one can cost you tens of thousands. Check all of the following. The First Home Owner Grant (FHOG) pays $10,000-$30,000 depending on your state, usually only for new builds. Stamp duty concessions vary enormously by state — NSW currently exempts first home buyers from duty on properties under $800,000, Victoria has a PPR concession up to $600,000, Queensland has a graduated exemption. The First Home Super Saver Scheme (FHSSS) lets you withdraw up to $50,000 of voluntary super contributions for a deposit at a lower tax rate. The Home Guarantee Scheme lets eligible buyers purchase with as little as 5% deposit without paying LMI, with the government guaranteeing the rest. Each has income caps, property caps and conditions, so check each program's current eligibility on your state revenue office website and servicesaustralia.gov.au.
Step 3.Three Months Out — Deposit, Budget and Target Suburb
Lock in your deposit target based on the loan-to-value ratio (LVR) you want. A 20% deposit avoids Lenders Mortgage Insurance (LMI), which can cost $10,000-$30,000 on a typical first home. A 10% deposit is workable with LMI or the Home Guarantee Scheme. Work out your real monthly budget including rates ($1,500-$3,000 a year), building insurance ($800-$1,500), strata (if applicable), utilities, and a buffer for maintenance (budget 1% of property value per year). Research your target suburbs using Domain and realestate.com.au sold-price data, not asking prices. Attend at least 10-15 open homes before bidding on anything — you need a feel for genuine value versus inflated asking prices.
Step 4.Get Pre-Approval Before You Make an Offer
Pre-approval (conditional approval) confirms how much a lender will lend you based on your income, expenses and deposit, subject to a valuation on the final property. It usually lasts 90 days. Approach a mortgage broker rather than going directly to one bank — brokers compare 20-40 lenders and often find sharper rates or friendlier policies for first home buyers. You will need: two recent payslips, two years of tax returns (if self-employed), three months of bank and loan statements, ID, and details of any existing debts. Do not apply to multiple lenders directly because each formal application creates a credit inquiry that can lower your score and signal desperation to future lenders.
Step 5.Inspection, Offer and Contract Checklist
Before you make any offer, commission a building and pest inspection ($400-$700). It is the best money you will ever spend — inspectors routinely find tens of thousands of dollars of hidden rot, termite damage, or electrical issues. Have a conveyancer or solicitor review the contract of sale before you sign ($800-$2,000). Check the section 32 (Victoria) or contract of sale in your state for easements, zoning, planning overlays, and any special conditions. Confirm the property is not in a flood zone or bushfire overlay unless you understand the implications. At auction, your bid is unconditional — no cooling off, no finance clause — so only bid if your finance is rock solid and your inspection is done. For private treaty, always include a finance clause and building/pest clause in your offer.
Step 6.Settlement and Move-In Checklist
Settlement typically happens 30-90 days after contract exchange. In the lead-up, arrange building insurance (often required from exchange, not settlement), switch your electricity, gas, internet and council details, and organise removalists early. Your conveyancer will coordinate the final search, adjust rates and water bills on settlement day, and handle the funds transfer. Do a final inspection in the week before settlement to confirm the property is in the same condition as when you signed and that any agreed repairs are done. After settlement, register for the First Home Owner Grant if eligible (some states pay it automatically, others need a separate application), update your driver's licence to the new address, and set up direct debits for your mortgage repayments, rates and insurance so nothing gets missed.
Useful Tools
- Stamp Duty Calculator — with first home buyer concessions for every state
- Borrowing Power Calculator — how much will the bank lend you
- Mortgage Calculator — repayments, total interest, loan term
- LMI Calculator — cost of Lenders Mortgage Insurance
Resources
- First Home Owner Grant — your state revenue office
- Home Guarantee Scheme — Housing Australia
- ATO — First Home Super Saver Scheme (FHSSS)
- ASIC MoneySmart — Buying a home