Buying a first home is a sequence of decisions, not a single form. This checklist walks through the work that usually sits before a contract, then the steps through to settlement, with links to the Never Lose Interest calculators and guides that sit behind each item.

It is a planning list, not a personal recommendation, and it does not replace a lender, conveyancer or building inspector. Scheme rules, grant amounts and duty concessions change, so confirm the current settings on the official sites before you rely on them.

This is general information only. It is not personal advice, and it is not an offer of a loan.

1. Get a clear picture of income, debts and living costs

Write down your income after tax, existing loan and credit-card repayments, HELP or other study-loan repayments if they apply, and your everyday spending. The pay calculator and HELP repayment calculator can help with the first two of those.

Lenders will do their own version of this exercise, then apply a serviceability buffer on top of the rate they would charge you. The borrowing power calculator shows a transparent estimate using APRA's 3 percentage point buffer. It is not a loan approval, and a lender may arrive at a different figure.

If you are buying with someone else, do this together. Joint borrowing can increase capacity, but it also means both of you are responsible for the loan.

2. Work out a deposit, and the cash you need besides the deposit

The deposit is only part of the cash you need. Stamp duty, legal and conveyancing fees, building and pest inspections, loan fees, moving costs and insurance all sit on top. See how much deposit you need and the stamp duty calculator.

MoneySmart notes that some lenders may accept a deposit as little as 5%, but a smaller deposit can mean lenders mortgage insurance unless a government scheme applies. A larger deposit usually means a smaller loan and less interest.

If you are still saving, the savings goal calculator can turn a target into a regular contribution. The First Home Super Saver Scheme is a separate way to save voluntary contributions in super, subject to the $15,000 a year and $50,000 total limits.

3. Check government help that might apply

Work through these in turn, because they are different products:

  • 5% Deposit Scheme (Home Guarantee Scheme): a government guarantee that can allow a 5% deposit, or 2% for eligible single parents and legal guardians, without LMI, with no income caps on the official rules from 1 October 2025, subject to location price caps.
  • Help to Buy: a shared-equity scheme with a 2% minimum deposit, government contributions of up to 30% or 40%, income caps, and 10,000 places a year. Its price caps are not identical to the 5% Deposit Scheme caps.
  • First home owner grants: state and territory payments, usually for new homes only. The Australian Capital Territory no longer pays the grant on current transactions; the Northern Territory pays a $50,000 HomeGrown Territory Grant instead of the old $10,000 grant.
  • First home stamp duty concessions or exemptions, which are assessed separately from grants.
  • The First Home Super Saver Scheme, if you have been making voluntary super contributions for a deposit.

Use the official eligibility tools on firsthomebuyers.gov.au and the revenue office in your state or territory. Meeting a published rule does not guarantee a loan, a reserved Help to Buy place, or a grant payment at settlement.

4. Review your credit file and genuine savings

Lenders look at your credit report, your savings history, and how you use credit cards, personal loans and buy now, pay later accounts. Get a copy of your credit file from the bureaus that hold it, and fix errors early. Regular transfers into a savings account are often more useful to a lender than a one-off gift that arrives just before you apply, though policies on gifts and family contributions vary.

A family guarantor can sometimes help you borrow with a smaller cash deposit. That is a serious commitment for the guarantor, because their security or savings can be at risk if you cannot pay. MoneySmart makes that point explicitly.

5. Get a pre-approval, then shop within a real budget

A pre-approval, sometimes called a conditional approval, is a lender's indication of how much it may be willing to lend, subject to a valuation, a contract and a final check of your circumstances. It is not a settlement guarantee, and it usually expires.

For the 5% Deposit Scheme and Help to Buy, the official process is to apply through a participating lender. Once you are pre-approved or conditionally approved, you typically have 90 days to find a home and sign a contract. Confirm the price cap for the exact suburb and postcode, because some suburbs have more than one postcode and the caps differ between the two schemes.

Use the mortgage repayment calculator to look at the repayment on the loan you would actually take, not only the maximum a lender might allow. Leave room for rates to rise, and for maintenance, body corporate fees and insurance. The buying versus renting calculator can help you compare the cash-flow picture, using growth and return assumptions you control.

6. Choose the property with the contract and the inspections in mind

Before you make an offer:

  • confirm the price sits under any scheme cap that you are relying on, including the lender's valuation, not only the advertised price
  • for a build or off-the-plan purchase, understand sunset clauses, variations, deposits paid to the developer, and when first home owner grants and duty concessions are paid
  • budget for a building and pest inspection on an established home, and read strata or owners-corporation records on an apartment
  • decide who will do the conveyancing, and do not sign a contract you have not had reviewed
  • if you need finance, the official Help to Buy guidance strongly recommends a "subject to finance" clause

An off-the-plan or house-and-land contract is a different risk profile from buying a completed home. Completion dates can move, specifications can change, and you may be asked to settle at a time when the valuation or your lending situation has changed.

7. Allow for insurance, occupancy rules and settlement funds

Home and contents insurance is often required by the lender from exchange or from settlement, depending on the contract and the state. Owner-occupier schemes and grants have occupancy rules. If you do not move in, or you do not stay for the required period, you can lose a guarantee or have to repay a grant.

Before settlement, your conveyancer or lawyer should give you a statement of the exact amount to pay, including adjustments for rates and water. Cleared funds have to be in the right account on time. A grant or duty concession that has not yet been approved is not money you can spend twice.

After settlement, keep the documents that prove occupancy, insurance and any scheme undertakings. Revenue offices and Housing Australia can check later.

A one-page order of operations

  1. Map income, debts and living costs, including HELP if it applies.
  2. Set a savings target that includes buying costs, not only the deposit percentage.
  3. Check the 5% Deposit Scheme, Help to Buy, first home owner grants, duty concessions and the First Home Super Saver Scheme against official rules.
  4. Get your credit file and tidy your finances.
  5. Speak to one or more lenders, including a participating lender if you want a government scheme, and seek pre-approval.
  6. Search only within the approved budget and any price cap that applies.
  7. Inspect, get legal advice, and do not sign a contract you do not understand.
  8. Arrange insurance, final loan approval and settlement funds.
  9. Move in on time if a scheme or grant requires it, and keep the records.

Frequently asked questions

Do I have to use a government scheme?

No. Many buyers save a larger deposit, pay LMI, or use family help instead. A scheme can reduce the cash you need now, but a larger loan or a shared-equity interest has a cost of its own.

Can I buy with friends or siblings?

Sometimes. The 5% Deposit Scheme and Help to Buy both describe applying on your own or jointly with one other person. Lending, title, grant and occupancy rules all have to work for every owner. Get legal advice about co-ownership before you sign.

Should I wait until I have a 20% deposit?

A 20% deposit often avoids LMI and reduces interest, but it also means more time out of the market. Whether waiting is worthwhile depends on prices, rents, your savings rate and whether a scheme is available to you. There is no official right answer. The calculators above can make the trade-off visible.

General information warning

This article is general information only. It is not personal financial product advice, legal advice or a recommendation to buy a home or to use a particular scheme. It does not take into account your objectives, financial situation or needs. Confirm current scheme, grant and duty rules on the official sites, and consider speaking with a licensed adviser, a registered tax agent and a conveyancer before you sign a contract or apply for a loan.

Sources

Last reviewed: November 2026.