Work out where you stand
Before you look at a single property, you need two numbers: roughly how much you can borrow, and how much cash the purchase will need on top of the loan. Most people guess both, and the guesses are often off.
Every lender works out borrowing power differently, and for the same person the gap between lenders can be tens of thousands of dollars. The borrowing power calculator on my homepage gives you a ballpark. I can give you the real range across more than 60 lenders.
For the cash side, try the funding table calculator. It adds stamp duty, government fees and legal costs to the price and shows whether your savings cover the gap between the loan and the total cost. Coming up short on costs is one of the most common reasons a first purchase stalls.
Know what help you can get
First home buyers get more support than most people realise, and it can change the numbers a lot.
- Stamp duty concessions. In Queensland, eligible first home buyers pay no transfer duty on a new home at any price, and none on an established home valued at $700,000 or less, with a partial concession up to $800,000. Other states have their own rules.
- The 5% Deposit Scheme. The federal scheme lets eligible first home buyers buy with a 5% deposit and no lenders mortgage insurance, as long as the price is under the cap for the area.
- Grants for new homes. Building or buying brand new can also qualify you for the First Home Owner Grant, on top of the duty savings.
Each of these comes with fine print, and the rules change with state and federal budgets. A 15 minute chat will tell you which ones you qualify for today.
Get your finances loan-ready
Lenders look closely at the last three to six months of your bank statements. Before you apply:
- Close or reduce credit cards you don't use. Lenders count the limit, not the balance.
- Pay off and close buy now, pay later accounts where you can.
- Save regularly. Even small, consistent deposits help.
- Think twice about changing jobs just before you apply. Some lenders won't lend during a probation period and others don't mind, so it helps to know which lender you're going with first.
Get pre-approved before you shop
Pre-approval is a lender agreeing in principle to lend you a set amount. It costs nothing, it shows you your real budget, and agents take buyers with pre-approval more seriously.
This is where a broker earns their keep. I check your documents, run your situation past the market and choose the lender whose rules suit you, rather than whichever bank you already have a savings account with.
Shop with your numbers
Your pre-approval is your ceiling, and the cash calculator tells you what any price means at settlement. Take both to every inspection. When you find the right place, you'll be able to decide in hours instead of weeks.
Offer, contract and formal approval
Once your offer is accepted, the contract will usually include a finance clause (your way out if the loan falls through) and a settlement date. I take the contract, order the valuation, confirm pricing with the lender and lodge the full application. When the lender gives formal approval you sign the loan documents, and your conveyancer handles the legal side.
You'll also need building and pest inspections, and insurance on the property before settlement. I'll remind you of each one when it's due.
Settlement and keys
On settlement day the lender pays the seller, the title transfers to you and the agent hands over the keys. Expect a flurry of confirmation messages, then a very good evening.
I'm still around once your repayments start. Twelve months after your loan settles, I review it to make sure it's still competitive.
