How to Buy Your First Home in 2026
When you’re buying your first home, it can feel like there are a hundred moving parts and everyone has a different opinion on what you “should” do.
This resource is designed to give you a clear, step-by-step roadmap for the full buying journey, from the very first conversations you should be having, right through to making offers with confidence and getting the keys.
In Part 1 of this resource, we’re focusing on the steps that get you ready to start your property search:
Getting clear on your goals and vision
Speaking with the right broker early
Understanding the real cost of buying
Knowing how much deposit you actually need
Getting your pre-approval organised
Part 1 of the resource supports Episode 28 of the First Home Unlocked Podcast: Unlocking How to Buy Your First Home in 2026 – Part 1.
Step 1: Goals and Vision First (Before You Talk Numbers)
If you don’t know what you’re aiming for, it’s hard to make confident decisions. This is where people get pulled off course by media headlines, family opinions, and pressure like:
“You have to buy now.”
“Rent money is dead money.”
“You’ll always make money on property.”
The problem is, when you buy reactively, you can end up with a home that doesn’t actually suit your life. Then you outgrow it faster than you expected, and buying and selling in short timeframes is expensive.
You want to define what success looks like for you, so your property supports your lifestyle, not work against it.
Questions to Ask Yourself
The 5 to 10 year view
What does life look like in 5 to 10 years?
What kind of life are you building?
Family goals
Do you want kids, or more kids? If so, when?
Is living near family or support networks important?
If kids are not part of the plan, that’s completely valid too. The goal is still the same: what makes a home feel right for your life?
Where you want to live and why
City, outer suburbs, or regional?
What do you want your day-to-day to feel like?
What matters most outside of work?
Work and career
Are you expecting income changes, a role change, or a move?
Do you need a work-from-home setup?
How important is commute time?
The Longer Runway Idea
Chris explained it really well but if you buy something that suits you today but doesn’t suit you tomorrow, you can get stuck.
A classic example is buying a studio or one-bed that feels fine now, then life shifts (kids, working from home, or just needing space). Suddenly you’re forced into decisions like selling quickly, renting it out, or moving again, and the transaction costs can eat into your progress.
Buying for a longer runway is about choosing something that can work for you for longer, ideally 5 to 10 years, so you’re not forced into expensive, rushed moves.
If you want help with this step:
Step 2: Speak With a Broker Early
Once you’ve got some clarity on your goals, the next step is speaking with a broker. This gives you time to build a plan around how your actually going to buy your first home.
A great time to start the conversation is 6 to 12 months out, but even earlier is fine if it helps you map out a plan and gives you the confidence you need. By starting early it gives you the time to:
Understand where you’re at right now and what needs to shift
Work out what support or schemes you may be eligible for
Get clear on the true upfront costs for your situation
Build a deposit strategy around your cash flow and existing debts
Identify red flags early
Simulate repayments and test what’s actually comfortable for you and your lifestyle
Why speaking with the right broker matters
Not all brokers work the same way. You’re not just looking for someone to tell you your max borrowing number and tell you to get back in touch once you have purchased.
You want someone who actually asks you questions, goes deeper, plays devil’s advocate, and can explain the “why” behind the strategy, not someone rushing you into an application.
A good broker should:
Slow the process down when it needs slowing down
Help you think strategically, not just chase a number
Educate you on things you don’t know
Build a mortgage strategy that fits what you’re trying to do long-term
What a broker does behind the scenes
At a practical level, this is what we do:
Compare options across 40+ lenders, not just one bank
Match your situation to lender policy (income types, self-employed, casual, profession-based LMI waivers, and more)
Help you understand borrowing capacity and what you need upfront
Structure your loan properly from day one (offset vs redraw, flexibility, longer-term strategy)
Handle admin and guide the process step-by-step
Represent you, not the bank
The great thing about using us as your broker is there is no direct cost to you, we’re paid by the lender at settlement. So if you’re ready to take action on this step, you can book a Get to Know You Chat with us.
Step 3: Understanding the Real Cost of Buying Your First Home
This is where a lot of first home buyers get caught out because saving your deposit is only one part of the picture when you buy your first home. On top of that, you need to plan for:
Government fees
Legal costs
Lender costs
Building and pest inspections
Insurance, moving and setup costs
A buffer after settlement
And this is where the 5% deposit scheme wording can confuse people. When the Government says ‘you can buy with a 5% deposit”, they mean the loan deposit only. It does not include your other upfront costs you need to pay for. So lets break down the other costs you need to be aware of.
Government Costs
The first is the Government cots, these vary by state depending on your purchase price. There are three Government charges which are:
Stamp duty ( you may be exempt or pay a reduced amount depending on state and price as a first home buyer)
Transfer fee (a fee to transfer ownership into your name)
Mortgage registration fee (to register your loan against the title)
Stamp Duty: Avoid it or Pay it?
This is a question we get often about should a first home buyer just purchase under the stamp duty cap to avoid paying any stamp duty. Now if you can avoid stamp duty and still buy a quality asset that could suit you for the next 5-10 years that’s great.
But don’t sacrifice the quality of the property just to stay under a cap, because sometimes paying some stamp duty can be worth it if it allows you to buy:
A better long-term asset
Something that suits your lifestyle properly
Something with better resale appeal
Also be careful if stamp duty support is mostly linked to new builds. More supply can mean different growth dynamics, so you want to think strategically.
Conveyancer (Legal Costs)
Your conveyancer is your legal representation and handles:
Contract reviews
Title checks
Settlement coordination
Making sure everything is done correctly
A common ballpark cost is around $3,500, depending on your situation and the complexity.
Lender costs
Lender cots are apart of getting a loan approval and these can include:
Application or valuation fees (often $100 to $500)
Annual package fees if you want features like an offset (often $90 to $395 per year)
Building and Pest Inspection
If you are purchasing an existing home this is non-negotiable in our view. These inspections can uncover:
Structural issues
Termites
Major defects you won’t spot at an open
Typical cost is $600 to $1,000, and it can save you serious money (or help you renegotiate, or walk away).
Insurance, Moving and Setup Costs
You will also need to factor extra costs depending on your situation, so you need to think about your situation as you may need pay for:
Building insurance (required by the lender before settlement)
Moving costs (truck/removalists)
Utility setup (internet, electricity, gas)
Furniture and household items
Emergency Fund Or Cash Buffer After Settlement
A cash buffer after settlement is so important because a mortgage is a big commitment and life happens. The amount is based on an individual basis as it depends on your life stage and security, but in general, more buffer is better, because even a simple surprise cost can feel huge if you’re stretched.
We recommended a minimum of at least $10,000. A few ways to think about it if your trying to work it out for your situation is to ask yourself:
Do you want a buffer that covers a set number of mortgage repayments e.g. 3-6 months?
Or do you feel more comfortable covering all of your basic living expenses, not just the loan repayments?
Or would having a set dollar amount, like $10,000, $20,000, or more in the bank, give you peace of mind?
And it’s also worth thinking about protection outside of savings, like income protection and other insurances if you couldn’t work for a period of time due to illness or injury.
Key takeaway: Plan for the full upfront cost, not just the loan deposit.
If you want the deep dive, go back to Episode 3: Unlocking the Real Cost of Buying Your First Home.
You can also download our State By State Stamp Duty Guide for First Home Buyers.
Step 4: Understand Your Deposit Options
Most people have heard you “you need a 20% deposit to buy a home”. Now the reason a 20% deposit gets talked about is because once you have it, you usually avoid Lenders Mortgage Insurance (LMI) and have access to better interest rates.
LMI is insurance the lender takes out to protect itself if the borrower can’t repay. It is not insurance for you, and it can add a significant cost when you have a smaller deposit.
The good news is there are pathways for first home buyers that allow you to buy with less than 20% without paying LMI, lets break them down together.
Deposit Pathways for First Home Buyers
The 5% Deposit Scheme (previously First Home Guarantee Scheme)
This allows eligible first home buyers to purchase with as little as a 5% deposit, without paying Lenders Mortgage Insurance
The government guarantees up to 15% of the purchase price, which allows the bank to treat you as if you had a 20% deposit
You still own 100% of the property, and you’re still responsible for 100% of the repayments
Family Guarantor
This is where a family member (usually a parent) uses equity in their home to support part of your loan
Depending on how much equity is guaranteed, you may be able to buy with a much smaller deposit, or in some cases, no cash deposit at all, because the bank treats the family equity as part of the security
This can reduce or remove LMI depending on structure
It does come with risks for the guarantor so it needs to be carefully considered and structured
LMI Waivers for Certain Professions
Some lenders waive LMI for specific occupations, like doctors, accountants, lawyers, engineers, and a few others, even with deposits under 20%
These typically require a minimum deposit of around 10%
No-LMI Policies with Certain Lenders
A small number of lenders offer policies where you can borrow with a 10% deposit without paying LMI, depending on your situation
Now once you know your pathway, you can build a realistic savings plan around:
Your cash flow
What’s comfortable for you to save
What you need for deposit plus upfront costs to purchase your first home
Simulate Your Future Mortgage Now
A strategy we use with clients is simulating their future mortgage repayments before they buy.
So if you and your broker think your future mortgage repayment might be around, say, $2,000 per fortnight:
Start putting that amount aside now.
This helps:
Build the habit early,
See what your repayment actually feels like,
Increases confidence when it’s time to buy
And you can use the accumulated savings towards your deposit
If saving that amount feels stressful now, that’s really valuable information to have before you take on a mortgage.
Now if you want a deeper dive around this step, go back to Episode 4: Unlocking Your Deposit and Episode 10: Unlocking the First Home Guarantee Scheme for the 5% scheme breakdown.
Step 5: Get Your Pre-Approval Organised
Once you’ve got your deposit saved and you’re ready to start looking at properties, you really want your pre-approval sorted first. Not because you’re locked in, but because it takes the finance uncertainty off your plate, so you can focus on what actually matters: choosing the right property and making good decisions under pressure.
What is a pre-approval?
A pre-approval is when a lender has reviewed your situation and confirmed they’re willing to lend you up to a certain amount, based on what they can see right now, including:
your income
your debts
your living expenses
your credit history
your deposit and savings history
It’s still conditional (because nothing is fully approved until you’ve got a specific property and a contract), but it’s showing you what a bank is willing to lend you based on your situation.
Why pre-approval matters so much for first home buyers
This is the part people often underestimate. Buying your first home is already a lot mentally, and when the finance side isn’t organised, it’s easy to spiral as as humans we only have so much brain capacity. If finance is still a question mark, then you’re trying to juggle:
work and life admin
inspections and comparisons
agent conversations
contract checks
building and pest
plus the constant “can I actually buy this?” in the background
And that’s when people either hesitate and miss good opportunities, or rush and make decisions they regret. Pre-approval helps because:
It stops you falling in love with a property you can’t actually buy
Most first home buyers do this at least once. You walk through a place, picture your life there, then the finance side doesn’t line up. Pre-approval reduces that risk.
It gives you certainty around what you can afford
Not just your maximum number, but how repayments might look, how different price points feel, and what’s realistic for your lifestyle.
It helps you move quickly when the right property comes up
Sometimes you need to act fast. Sometimes the strategy is to be patient. Either way, you don’t want the finance side slowing you down or forcing rushed decisions.
It makes you more credible with agents and sellers
When an agent knows you’re pre-approved, you’re treated differently. You’re seen as someone who can buy not someone just looking.
It reduces delays because the bank has already assessed you
You’ve already been through the documentation process, the lender questions, and the initial assessment. When you find the right property, you’re not starting from scratch.
How long does pre-approval last?
Most pre-approvals are valid for around 90 days, and in many cases they can be extended if needed. The key is: pre-approval is based on your situation staying the same as when you applied.
What to do While You’re Pre-Approved
Because your pre-approval is assessed on your current financial position, it’s important to keep things stable while you’re looking at properties. Try to avoid:
Taking on new debts (car finance, new credit cards, big Afterpay limits)
Changing jobs or switching to a different employment structure without talking to your broker
Making large purchases that reduce your savings buffer
Moving money around in a way that makes your deposit harder to verify
And if you are planning changes that okay just call your broker first and talk it through, so you understand the impact before you make the move.
The whole goal with preapproval is to get the finance side sorted, so when you’re out inspecting, your focus is on:
Comparing properties properly
Thinking about asset quality
And choosing something that suits your life for a longer runway
