First Home Buyer Checklist
What do I need to do and organise before buying my first home in Australia?
By Andrew, franklenn FINANCE 7 min readUpdated 3 November 2026
The short answer
Before buying your first home, you need four things in place: a deposit plus enough cash for upfront costs, clean and well-organised finances, a pre-approval from a lender, and a clear idea of what you can comfortably afford. From there, check which government schemes or concessions you may qualify for, line up a conveyancer and building and pest inspector, and keep a cash buffer for after you move in. Working through it in order saves stress and money.
Detailed explanation
Get your money in order first
The first part of the checklist is about your savings and spending. Lenders look at your last three to six months of bank statements, so this is the time to tidy things up. That means paying bills on time, cutting back on buy now, pay later accounts, and showing a steady pattern of saving.
Your deposit is only part of the cash you need. You will also pay for things like conveyancing, a building and pest inspection, loan fees, possibly stamp duty and lenders mortgage insurance (LMI), plus moving costs. Many first home buyers underestimate these by several thousand dollars.
A simple way to start is to write down every regular expense for a typical month, then compare it with what your bank statements actually show. Lenders will ask you to declare your living costs, and the closer your figures are to reality, the smoother the application tends to be.
- Work out your total savings, including any gifted money from family
- Close or reduce credit card limits you do not use
- Pay down or clear personal loans and buy now, pay later balances where you can
- Check your credit report for free with Equifax, Experian or illion
Gather your documents
Having your paperwork ready makes the pre-approval process much faster. Lenders want to verify who you are, what you earn, what you own and what you owe.
If you are self-employed, expect to provide more: usually two years of tax returns and notices of assessment, plus business financials and sometimes BAS statements.
- Photo ID (driver licence, passport)
- Your two most recent payslips and possibly an employment letter
- Recent bank statements for savings and transaction accounts
- Statements for any loans, credit cards or HECS-HELP debt
- Evidence of genuine savings and any gift letter from family
Check schemes, grants and concessions
Federal and state governments offer help for first home buyers, but the rules change regularly. The federal 5% Deposit Scheme (part of the Home Guarantee Scheme) can let eligible buyers purchase with a smaller deposit and no LMI. It was expanded from 1 October 2025 to remove income caps, offer unlimited places and lift property price caps.
States also have their own First Home Owner Grants and stamp duty concessions in Queensland and NSW, usually with property type and price limits. Check the current rules before you set your budget, or ask us to run through what may apply to you.
Get pre-approval and set a realistic budget
Pre-approval (sometimes called conditional approval) is a lender saying they are likely to lend you a certain amount, subject to a valuation and final checks. It is not a guarantee, but it tells you and sellers you are serious.
Just because a lender will approve an amount does not mean you should borrow all of it. We encourage clients to test repayments against their real budget, including childcare, school costs and the occasional unexpected bill.
When you find the right place
Once you have an accepted offer, the pace picks up. Your conveyancer or solicitor reviews the contract, you arrange a building and pest inspection, and your lender orders a valuation before giving formal approval. Line up building insurance from the date you take on risk, which in some states can be from the contract date.
Keep a cash buffer for after settlement. The first few months in a new home often bring surprise costs, from a broken hot water system to rates and body corporate levies.
Worked example
Upfront cash for a $612,500 first home
Here is an illustrative example of the cash a first home buyer might need on a $612,500 established home with a 10% deposit. Costs vary by state, lender and provider, so treat these as placeholders and check current figures.
| Purchase price | $612,500 |
| 10% deposit | $61,250 |
| Stamp duty (assumed full first home concession, check eligibility) | $0 |
| Conveyancing and legal | $1,850 |
| Building and pest inspection | $640 |
| Loan application and settlement fees | $395 |
| Moving costs | $1,280 |
| Total upfront cash (before LMI and buffer) | $65,415 |
In this example the buyer needs about $65,415 before any LMI and before a buffer for life after settlement. If they do not qualify for a stamp duty concession, the figure could be much higher, which is why we check concessions early.
Illustrative only. Figures are examples, not a quote or a recommendation.
Common mistakes
- Budgeting for the deposit only and forgetting stamp duty, legal fees, inspections and moving costs
- Applying for new credit (a car loan, phone plan or credit card) while waiting for approval
- Treating pre-approval as a guaranteed loan and skipping the finance clause in the contract
- Borrowing the maximum amount without testing the repayments against a real household budget
- Assuming a grant or scheme still works the way it did last year without checking current rules
- Skipping the building and pest inspection to save a few hundred dollars
Frequently asked questions
Next steps
Talk to franklenn FINANCE
Want a hand ticking off your checklist? Book a free discovery call with franklenn FINANCE and we will walk through your savings, documents and options in plain English.
This guide is general information only and does not consider your objectives, financial situation or needs. It is not financial, tax or legal advice. Lender policies, rates and government schemes change. Please speak with us, and with your accountant or solicitor where relevant, before acting.