How to Buy Your First House | Beginner's Guide 2025

Preparing your finances and deposit

Understanding your financial health is the crucial first step when figuring out how to buy your first house. Lenders will thoroughly review your income, spending habits, existing debts and savings history. This process determines your borrowing capacity.

• The deposit: Aim for a 20% deposit to avoid Lenders Mortgage Insurance (LMI), although many first home buyers start with 5% or 10%.

• Hidden costs: Budget for stamp duty, legal fees (conveyancer), building and pest inspections and moving costs. These can add up significantly.

• First Home Owner Grants (FHOG): Research state and federal grants and schemes (like the First Home Super Saver Scheme) that can boost your deposit.

HeyNest connects you with an independent mortgage broker who can accurately calculate your real borrowing capacity and identify all available grants and incentives you qualify for, ensuring you start your journey financially prepared.

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The pre-approval and property search

Securing pre-approval before searching for a property is non-negotiable for serious buyers. It gives you a firm budget and confidence when making an offer.

• What is pre-approval? It’s a conditional agreement from a lender stating how much they are willing to lend you. It lasts for a set period, typically 90 days.

Benefits of pre-approval:

• It defines your search criteria, stopping you from looking at homes you can't afford.

• It makes you a more attractive buyer to vendors, as it proves you are financially ready.

• It significantly speeds up the final approval process once you find a home.

Once pre-approved, you can search with confidence. A HeyNest broker compares loans from over 40 lenders, ensuring the pre-approval you receive is on the best possible terms for your specific goal to buy your first house.

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Securing your loan and settlement

After finding your dream home and having your offer accepted, the focus shifts to formal loan approval and settlement. This is often the most complex part of the process.

• Valuation: The lender will conduct a formal valuation of the property to ensure it’s worth the purchase price.

• Formal approval (unconditional): Once the lender confirms the valuation and reviews all final legal documents, they issue the formal approval.

• Conveyancer’s role: Your conveyancer handles all legal aspects, including title searches, contracts and liaising with the lender's legal team.

• Settlement: The day ownership officially transfers and you receive the keys.

Facing the banks alone can be stressful. Your HeyNest broker manages all communication between the lender, the conveyancer and the selling agent, ensuring a smooth path to settlement and making the goal to buy your first house a reality.

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Frequently asked questions

How much deposit do I need to buy my first house?

You typically need at least a 5% deposit, but aiming for 20% is ideal to avoid Lenders Mortgage Insurance (LMI).

What is the role of a mortgage broker when I buy my first house?

They compare loans from many lenders, negotiate the best rates, handle paperwork, and guide you through the entire process impartially.

How long does the process take from start to finish?

It usually takes 3 to 6 months to save and get pre-approval and then 4 to 8 weeks from offer acceptance to settlement.