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
Part 2: The Action Phase
Now it's time for the action phase. In Part 2, we're walking through:
Asset quality: how to assess what makes a high-quality property
Property inspections and due diligence
Making an offer that protects you
Formal approval and settlement
This is where preparation meets execution. When you combine the steps from Part 1 with what we're covering in Part 2, you'll have a complete roadmap for buying your first home with clarity and confidence.
Part 2 supports Episode 29 of the First Home Unlocked Podcast: Unlocking How to Buy Your First Home in 2026 - Part 2.
Step 6: Asset Quality
Asset quality is one of the most important steps to understand before you start inspecting properties, because once you're pre-approved, it's very easy to jump straight into open homes, fall in love with something that looks nice, and skip the bigger picture.
The problem is, not all properties are created equal. Some will grow in value over time. Others will struggle. And for first home buyers, that first property sets the foundation for everything that comes next.
Why Asset Quality Gets Missed
There are two big reasons asset quality gets overlooked. The first is that many first home buyers are simply focused on getting into the market. The second is the widespread belief that all property goes up. This assumption is often passed down from parents and grandparents who bought houses in capital cities decades ago and did well.
But today's first home buyers often can't afford houses in the same areas. They're buying apartments, townhouses, or homes in outer suburbs, which means they're taking on more risk. The property market isn't as forgiving as it used to be and buying the wrong asset early can limit your options for years.
That first property is your foundation. If it grows in value, it creates equity you can use to upgrade, invest, or simply feel more financially secure. But if it doesn't perform, you can get stuck.
The Big Idea: Supply and Demand
At the core of asset quality is supply and demand. Over the long term, property prices are driven by:
Demand: how many people want to live there
Supply: how many similar properties are available
When demand is strong and supply is limited, prices tend to perform better over time because more buyers are competing for fewer properties.
Understanding Supply: Is This Property Rare?
One of the first questions to ask is: how many properties like this exist?
If a home is one of hundreds that look the same, or it can easily be built again nearby, it's not rare. And generally, less scarcity means weaker long-term growth. That's why you need to be careful around:
Large new housing estates: because developers can often keep building into the paddock next door, and that ongoing supply can limit price growth
Off-the-plan apartments: these can be even riskier, especially if you're signing contracts months or years before the property is even built
What to Look for in Apartments
If you're considering an apartment, here are a few things to check:
Use Google Maps in satellite mode. Look for white roofs (commercial and industrial buildings). If you see a lot of available land, more apartments could be built.
Walk the street. Is this a small, quiet block of units surrounded by houses? Or is it part of a high-density development with cranes nearby?
Check the apartment itself. Is it one of the better apartments in the block? Does it have good light, privacy, a balcony, or a larger layout? You don't want to buy the worst apartment in the block.
Look at who lives there. A good mix of owner-occupiers, families, downsizers, and renters is a positive sign. If everyone's renting, that's a red flag.
Understanding Demand: Who Actually Wants to Live Here?
Once you understand supply, you also need to look at demand. Ask yourself: Who wants to live here? And why?
High-demand areas usually have:
Access to jobs
Good schools
Public transport
Lifestyle appeal: cafes, gyms, parks, supermarkets
You're not just buying for yourself today. You're buying with future buyers in mind, for when you decide to sell.
The Importance of Buyer Pools
Another important factor is buyer pools. This just means how many different types of people would want to buy your property when you decide to sell?
If your property only appeals to one group, like singles or investors, you're limiting your options. But if it suits couples, families, downsizers, and investors, you'll have more competition at auction and more buyers at open homes, which typically drives a stronger selling price.
Zooming In: Suburb Quality
Once you understand supply and demand, it's time to zoom in, starting with the suburb. When you're looking at a suburb, check for:
Access to shops, schools, cafes, gyms, and public transport
Crime rates and safety
Green spaces and health services
You can research a lot of this using tools like the Domain suburb profile. These liveability factors matter not just while you're living there, but for future buyers if you decide to sell down the track.
The Street Still Matters
Even within a great suburb, streets can vary a lot. A quiet, tree-lined street will generally outperform a home on a busy main road. Main roads often mean:
More noise
Less privacy
Safety concerns
Harder to sell later
Some questions to ask yourself when looking at a street:
Does the street feel quiet and safe, or is it on a busy road?
What's the overall vibe? Is it tidy and well-kept?
How's parking for you and visitors?
Are there any obvious noise or visual impacts nearby? (e.g., highways, railways)
The Property Itself
Now let's look at the property itself. In Australia, a north-facing backyard is generally preferred. It usually means:
Better natural light
Warmer living spaces in winter
These things genuinely improve daily living. And when you sell, future buyers feel it too.
Evaluating the Home
When inspecting a home, you need to be considering:
Streetscape and curb appeal
Surrounding homes and businesses
The floorplan: does it make sense?
Natural light and flow
A practical, flexible layout matters. Think about things like the bedroom separation, space to work from home, outdoor usability and whether it could suit different buyers in the future. If a layout makes life hard, you'll feel it every day, and future buyers will too.
Why Understanding Asset Quality Matters Before You Inspect
Understanding asset quality upfront helps you:
Assess properties faster
Avoid emotional decisions
Focus on homes that support your long-term goals
It also helps your future self as your deposit for your first home might be $50,000 or $100,000. That money needs to grow, not just because it builds wealth, but because it gives you options down the line.
If you buy as a single, you'll need that equity to upgrade as a couple. If you buy as a couple, you'll need it to move into a bigger home. Property prices don't sit still, and even if your property goes up, the next property you want to buy will likely cost more too.
That's why focusing on a good quality asset from the start is so important. A high-quality asset is hard to buy but easy to sell.
If you want a deeper breakdown of this step, go back and listen to Episode 6: Unlocking Asset Quality, and we've also linked our Asset Quality Checklist here for you to use.
Step 7: Property Inspections and Due Diligence
Step 7 is your property search, inspections, and due diligence. This is where things start to feel real, because you're out there looking at homes and talking to agents.
The goal here is to slow things down just enough to make smart decisions, and to have a process you can repeat every time because no amount of time online researching properties replaces physically inspecting a property.
Why You Need to Inspect Properties in Person
Photos can hide a lot. Angles, editing, and styling can make a home look bigger, brighter, and newer than it really is. And you can't hear noise, get the street feel, or notice things like moisture, smells, or how the natural light actually flows through the space when you're just looking online.
How to Inspect Properly
Here are a few simple strategies that make a huge difference when inspecting properties:
Check out the surrounding area
Drive around the area
Walk the street
Look at the neighbours
Check parking
If you can, go past at different times of day
Don't get distracted by styling
Styling is designed to make you feel something. But you're not buying the styling or furniture. You want to be assessing the actual property:
Natural light and aspect
Noise and privacy
Layout and flow
Storage and practicality
Outdoor usability
Anything that feels off, like smells, moisture, or uneven floors
Should You Inspect Twice?
If you can, we reccommend doing it. The second time, you see things you completely missed the first time.
The first inspection is highly emotional. Even if you think you can control your emotions, it can be hard sometimes when you're making huge financial decisions. You see all the good and you get excited.
The second time, your brain starts checking whether you're making a good decision. You start to notice the compromises. And if you bring someone independent with you (a partner, a family member, a friend), they'll often spot things you don't.
Also, a property can look amazing at lunchtime but much different at 8am when there's school traffic. Looking at different times of day gives you a different view.
If you only get one inspection in a hot market, that's fine. Just go in prepared, take notes, and don't rush your process.
Chris's Personal Non-Negotiables
Chris always checks privacy. He'll look over the back fence, walk around the property, and see what other windows people can look in from. Severely exposed properties can really catch you out and turn off a lot of buyers.
He also watches out for agent tricks: music playing to mask noise, scented candles to hide smells, lights turned on to create warmth, and styling to make rooms feel bigger than they are.
Don't get caught out by how good a property looks because of styling. Focus on whether it's actually nice to live in.
Building and Pest: Don't Skip It
We always recommend doing a building and pest inspection. Ideally you organise your own inspector to get an independent report, not just rely on one provided by the agent. If you do rely on the agent's report, you want to confirm whether there's the potential for a conflict of interest.
When you get the report, don't just read it. Call the inspector and ask them:
"If this was your money, would you buy this property?"
"Would you want a friend to buy it?"
If you're buying an apartment or townhouse, you really need to read the strata report carefully. Make sure there are no major issues in the building, no big works plan, and that there's money in the sinking fund.
Have that phone call with your inspector, you wouldn't buy a car without getting it checked.
Due Diligence and Verifying the Property
Due diligence is your responsibility, not the agent's. Purchasing a home is a big commitment, and you want to make sure you're doing the right checks upfront.
Comparable Sales
You want to be looking at comparable sales to make sure the advertised price guides are accurate and realistic. You can use the Sold tab on Domain or realestate.com.au and compare it to similar properties. Try to find around 5 comparable sales, ideally within the last 3 months, depending on how fast the market is moving. And make sure you're comparing apples with apples. Look at:
The same property type
Similar location
Similar condition
Similar features
Number of bedrooms
Agents will give you some comparable properties, but they're usually ones in their interest and the vendor's interest, not yours.
What you really want to know is whether the price you're paying is fair and current market value in the current market. You're not looking to get a bargain. You just want to make sure it's a really good asset, and the price you're paying is fair.
Nothing beats actually going through those properties. Even if it's not the right property for you, go and look at properties that are both better and worse than what you're considering. Walk through them. Track what they sell for at auction, as this will give you real reference points.
Contract Review
Never buy a property without your conveyancer or solicitor reviewing the contract. This is where things like easements, covenants, zoning, overlays, and permits come up. And these can affect what you can do with the property, or even its value.
Future Development
You also want to be checking any planned or future development in the area. If you can, call the local council planning department and ask if there's any potential development nearby that could impact the property.
You want to be looking out for anything that could affect privacy, views, noise, or the general feel of the street.
If you're buying a house in a new estate, it doesn't take much to look around and realise that when you sell one day, it's not going to be new anymore, and there's going to be newer estates nearby.
If you're buying a townhouse, ask yourself: are you in a street where it makes sense for people to build more townhouses and sell them?
Same with apartments. While you hold this property, is the market going to shift where your property becomes less desirable because there are new things being built, or the suburb is getting more dense?
If you're buying an owner-occupier house, just look around. Are they all renovated? Are they unlikely to change? Or are there houses that are boarded up, which could get knocked down and redeveloped?
Strata and Owners Corporation
If you're buying an apartment or townhouse with an owners corporation, you want to read the minutes and rules. That's where you can uncover:
Upcoming maintenance
Disputes
Special levies
Issues in the building
Once you've completed all these checks and you're feeling confident about the property, it's time to move forward and make an offer.
Step 8: How to Make an Offer
Step 8 is how to make an offer, this is important because every agent's sale and offer process can look different.
Have Your Team Ready First
Before you start thinking about making offers, you want to make sure you have your conveyancer ready.
A conveyancer is the licensed professional who handles the legal side of buying property. They help with reviewing the contract, explaining what it actually means, and helping protect you with the right conditions.
Getting your conveyancer sorted early means the process will be much smoother, and you can move quicker when you're ready to make offers.
When your choosing a conveyancer make sure they're very experienced. They should just be doing conveyancing and have a small team. Someone who's a local specialist in that market, who's been doing it a long time, not some digital conveyancing service. What you really want is to be able to get a contract, get it to someone experienced, get them to review it, and get them to actually take the time to read it and give you good advice and tips.
We can also help recommend a great conveyancer for you.
Private Sale vs Auction
Next, you need to understand what type of sale you're dealing with, because the way you make an offer changes depending on whether it's a private sale or an auction.
Private sale is where you negotiate with the agent and the vendor (the person selling the property). Private sales give you flexibility. You can include conditions like finance clauses and building and pest inspections, and you can negotiate things like settlement terms.
Auctions are different, auctions are unconditional when the hammer falls. There's no finance clause, no building and pest inspection, and no cooling-off period. So you want to be fully prepared financially, legally, and emotionally before you bid at auction.
How to Prepare for an Auction
A great way to prepare for auctions is to attend a few before you find the property you actually want to buy. Go and experience the process. But also really role-play the strategy with your partner:
Are we going to start strong or go slow?
Who's bidding? You or me?
What's the number we agree on prior?
What's our real stretch number?
You don't want to be flapping at the auction. You want to have had that conversation beforehand.
Set your no-regrets price before the auction. This is the maximum you're willing to pay, where you'll be happy with your decision whether you win or walk away.
Questions to Ask the Agent (Private Sales)
For private sales, when you find a property and you're ready to make an offer, you want to ask the agent how their offer process works. Not every agent uses the same rules, so you need to understand the process of the agent you're dealing with. Ask things like:
"How do you run your offer process for this property?"
"Is there a deadline for offers?"
"What happens once I make an offer?"
"Will I be told if another offer comes in above mine?"
"What's important to the vendor beyond price?" (e.g., shorter settlement)
That last question is key, because the highest price doesn't always win. Sometimes the vendor values other factors more, like a shorter settlement or fewer conditions.
Understanding What the Vendor Wants
People think it's all about price, but vendors really sometimes care more about terms. Think about it. The vendor is often doing something that they want to achieve as well.
Maybe they're downsizing to an apartment. Maybe they've bought something off-the-plan that takes six months to settle, so you could rent it back to them. Maybe they need that cash fast, so you could do a shorter settlement period. Maybe they just want to live in the property for another three months because they haven't bought something yet.
Try to understand the ideal situation from a terms point of view for the vendor.
Sometimes that won't work for you, but if it does work for you, you already have an advantage. And often, a lot of vendors will accept better terms than price because that takes a huge stress away or could save them money or could just allow them to live a better life for that period.
Good agents will help explain that because they want the property sold as well. But sometimes it's just an investor and they don't really care. They just want it sold. And you might just have to focus more on price than terms.
What Makes Up a Strong Offer
If you're buying through a private sale, a strong offer should be clear and in writing. Your conveyancer will help you understand exactly what needs to be included in your offer.
Some of the key things to consider are:
The offer price
Your deposit amount
Settlement period
Your conditions
What's included in the sale
Any special terms
Critical rule: If it's not written in the contract, it doesn't exist. If the agent says, "Yeah, the fridge is included," or "The vendor will fix that," or "You can have early access", it needs to be written into the contract and checked by your conveyancer before you sign anything.
Conditions That Can Protect You
We always recommend talking to your broker and conveyancer about what you actually need for your situation. For private sales, some of the most common protections include:
1. Cooling-off period
This is a legal right in most states for private sales, but not auctions. It gives you a short window after signing to change your mind, and the timeframes, costs, and rules vary by state. In some situations, this right can be waived, so it's important to understand what applies to you.
2. Finance clause
This protects you if your loan isn't formally approved in time. It gives you a set period, often around 14 days, to get formal approval, if your lender declines, you can exit the contract.
3. Building and pest inspection clause
This allows a qualified inspector to check for structural damage and pest issues. If major problems are found, you can renegotiate or withdraw.
4. Strata and owners corporation review clause
If you're buying an apartment or townhouse on a strata title, this gives your conveyancer time to review the strata records. This includes the building's financial position, meeting minutes, upcoming works, and any known issues.
What Happens When Your Offer Is Accepted
Once your offer is accepted and contracts are signed, you'll send the signed contract straight to your broker, and the formal approval process begins.
If you want a deeper breakdown of making offers, conditions, and auctions, go back and listen to Episode 7: Unlocking How to Make an Offer.
Step 9: Formal Approval and Settlement
Step 9 is formal approval and settlement. It's important as a first home buyer to understand what's actually happening, who's doing what, and what you need to have ready so you have a smooth, stress-free settlement.
Formal Approval
Once your offer is accepted and contracts are signed, this is when the formal approval process begins. Your broker will:
Confirm your final funding position based on the purchase price
Submit everything to the lender for formal approval
Order the bank valuation
That valuation is a really important part of formal approval. It's not just about the price you've paid. The valuation is the lender confirming they're comfortable lending against that specific property. The bank is checking that the property fits their lending rules. Most of the time, this process is straightforward and there's no issue. But every lender does have their own policies around the types of properties they're willing to lend against. For example, some lenders have:
Restrictions on certain apartment blocks if they already have a lot of exposure in that building
Limits in specific postcodes
Rules around minimum sizes or high-density developments
Once the valuation is complete, the lender does a final check of your application and then issues formal approval.
Timing can vary on this. Sometimes it's quick, sometimes it takes a few business days depending on the lender and their workload, and when that approval comes through, your broker will call you.
What Happens Between Formal Approval and Settlement
Once you've received formal approval, there are a few key steps to tick off before settlement day.
1. Sign your loan documents and set up accounts linked to the loan
Like your loan account and any offset accounts.
2. Make sure your settlement funds are ready
Your broker will confirm exactly how much money you still need to contribute at settlement, often called the shortfall.
3. Organise building insurance
Building insurance is required by the lender before settlement.
You'll need to organise a policy that starts from settlement day (or even a couple of days before) and make sure the lender is listed as an interested party on the certificate.
If you've bought an apartment or townhouse under a strata title, the building insurance is usually included, and you may have to present this part of the strata report to the lender.
4. Your conveyancer sets up settlement in the background
They coordinate with:
Your lender
Your broker
The seller's legal team
What Happens on Settlement Day
Settlement day is the legal moment the property transfers from the seller to you. Most of the time, you won't need to do anything on the day. Your conveyancer and broker will handle it, and you'll get a call once settlement is complete. Then you can collect the keys from the agent and you're officially a homeowner!
A Couple of Tips for Settlement Day
Keep your phone handy, just in case someone needs to reach you
Don't book removalists for the exact settlement time. Delays can happen, so give yourself a buffer
Don't assume the property will be professionally cleaned. It's not the same as a rental exit
If you want the full step-by-step breakdown of formal approval to settlement, go back and listen to Episode 8: Unlocking Formal Approval and Settlement.
Final Thoughts
That brings us to the end of this complete guide on how to buy your first home in 2026. Across Part 1 and Part 2, we've covered:
Part 1: The Preparation Phase
Getting clear on your goals and vision
Speaking with a broker early
Understanding the real cost of buying
Your deposit options
Getting pre-approved
Part 2: The Action Phase
How to assess asset quality
Property inspections and due diligence checks every buyer should be doing
How to make a confident offer
What happens from formal approval through to settlement
When you follow these steps, you've got a complete roadmap for buying your first home with clarity and confidence. If you want help navigating any part of this journey, you can Book a Get to Know You Chat with us.
