Buying your first home in Australia can feel huge. There’s money on the line, a stack of forms, and a lot of voices telling you what to do. The good news is that a simple plan takes the edge off. This first home buyer guide keeps things clear and practical so you can focus on what matters: choosing well, paying the right price, and getting the keys without stress. If you’ve been searching “how to buy a house in Australia” and feeling stuck, you’re in the right place.

Here’s what you’ll get. We’ll walk through the steps from setting up the right ownership structure to working with a broker, shortlisting suburbs, valuing a property, and sealing the deal. You’ll see common mistakes first home buyers make and how to avoid them. We’ll cover the essentials like broker vs bank, using comparable sales, contract conditions such as a subject to finance clause, and why a building and pest inspection is worth every dollar. The aim is confidence at each step, with plain English tips you can act on today. And if you want extra help, BuyerAgentFinder makes it easy to compare trusted buyer’s agents who can back you up through the process.

Who this guide is for

This guide is for any first home buyer in Australia who wants a clear, step-by-step path from pre-approval to settlement. If you’re weighing up house vs townhouse vs unit, you’ll get plain English help to compare price, land value, upkeep and long-term growth so you can choose with confidence. It also suits buyers who want bank-ready paperwork, cleaner contracts and fewer surprises, including smart use of a subject to finance clause, building and pest inspection, and recent comparable sales. And if you’d like extra support, BuyerAgentFinder helps you compare trusted buyer’s agents across Australia for suburb research, pricing and negotiation.

Step 1: Choose the right ownership structure

Personal, joint or trust

Your ownership choice shapes tax outcomes, cash flow, and future borrowing power. Buying in a single personal name is simple and low-admin; all rental income (later, if you rent it out) and tax outcomes sit with that person. Joint names can work well for couples, but think about how you hold it: joint tenants is a straight 50/50, while tenants in common lets you set a split such as 70/30 or 99/1. Those splits are then locked in for income and capital gains when the home becomes an investment property. A discretionary trust can add flexibility later because you can distribute net rental income to different beneficiaries each year. Lenders may also assess a self-funding property in a trust differently to one held in personal names. Trusts do come with setup and ongoing costs, extra paperwork, and tighter lending rules in some cases. Get personalised tax and legal advice before you decide.

When your home becomes an investment

Plenty of first home buyers upgrade within a few years, then keep the first place as a rental. Plan for that now. Think about serviceability, how lenders treat your existing loan, and whether the expected rent will cover repayments and holding costs. If you see yourself turning the property into an investment down the track, pick a structure that won’t clip your borrowing capacity for your next principal place of residence. A quick sense-check helps: could this home attract solid tenant demand, does the area have balanced supply, and will the numbers stack up with realistic rent? Lining up these basics today keeps future you in a stronger spot when you’re ready to buy again.

Step 2: Speak with a mortgage broker before a bank

Why start with a broker

A good mortgage broker gives you choice. Instead of one bank’s products, you can compare options from many lenders with different rates, features and policies. That variety matters when you are a first home buyer working within a set budget and trying to maximise borrowing capacity. Brokers also understand policy quirks, like how overtime or bonus income is treated, what counts as genuine savings, and which lenders are friendlier to your job type. They help package your application so it is clean, consistent and easy to approve. In most cases the lender pays the broker, so you get expert guidance without an extra fee, and you can handle most of the process from home.

What to prepare

Turn up bank ready. Collect recent payslips, photo ID, bank statements that show your savings history, and a tidy list of liabilities such as credit cards, HECS and car loans. Add a simple budget that includes buffers for rate rises, home insurance, council rates, strata where relevant, and routine maintenance. This prep speeds up pre-approval, helps your broker target the right lenders, and gives you a clear price range before you start shortlisting suburbs.

Step 3: Map your budget, deposit and schemes

Deposit pathways and guarantees

Your deposit sets the pace, so get clear on the levers you can use. If you have less than 20%, lenders mortgage insurance (LMI) usually applies, although many buyers choose to pay it to get in sooner. A family guarantor can help you avoid LMI by using equity in a parent’s property as extra security. The federal Home Guarantee Scheme offers another path: eligible buyers can purchase with a smaller deposit and skip LMI because the government guarantees part of the loan. The First Home Guarantee supports 5% deposits, while other guarantees can allow as little as 2% depending on the program.  From 1 October 2025, the government is bringing forward broader access to buy with a 5% deposit, with the guarantee helping first home buyers avoid LMI; always confirm current criteria, price caps and lender participation with Housing Australia and your broker, as policy settings can shift.  

Step 4: Shortlist suburbs with data, not hunches

Supply pipeline and approvals

Start with supply. If a suburb has a large pipeline of new dwellings on the way, price growth can stall. Check council planning portals, state planning layers and ABS building approvals to see what’s coming over the next few years. Look for trends, not one-off projects: multiple townhouse sites, broadacre releases or several mid-rise approvals in the same pocket point to heavier future supply. Cross-check nearby suburbs too, as spill-over stock still hits buyer demand. If the data shows a flood of new listings ahead, move your shortlist to areas with tighter supply and more stable owner-occupier demand.

Liveability filters

Now pressure-test the short list against how you’ll live day-to-day. Map the commute in peak hours, check school catchments and enrolment pressure, and walk the streets to gauge noise, traffic and access to parks or green space. Add practical checks like supermarket choice, health services and public transport frequency. Finally, align everything with your loan pre-approval: set a firm price bracket and filter out suburbs that push you into compromises you don’t want. This balance of data and liveability gives first home buyers a clear, confident way to choose where to buy.

Step 5: Pick the right dwelling type

House vs townhouse vs unit

Your choice of dwelling shapes long-term results and day-to-day costs. A freestanding house usually carries more land value, which is what tends to drive capital growth over time. You’ll handle your own maintenance, rates and insurance, but you won’t be paying strata fees. Demand is broad, especially with families, which helps when it is time to sell or rent.

Townhouses sit in the middle. You still get a share of land and often a garage or courtyard, with lower upkeep than a house. There will be an owners corporation, so factor in strata fees, special levies and any rules that might affect renovations or pets. Well-kept, low-density complexes in good school zones attract steady interest from first home buyers and tenants.

Units offer the lowest entry price and can put you closer to work and transport. That said, growth can be capped in areas with lots of new stock, and high-rise buildings can come with higher owners corp fees for lifts, pools and gyms. Always review recent sales in the block, the sinking fund balance and any history of defects before you commit.

If your budget is tight in Sydney or Melbourne, weigh the trade-offs clearly. A townhouse in a quality suburb can beat a small unit in an oversupplied precinct. An older, low-rise unit in a boutique block can beat a shiny tower with heavy fees. You can also target a smaller house on a modest block a little further out if you want more land value and are happy with the commute. Keep the numbers honest, compare total monthly costs, and choose the option that fits your borrowing capacity, lifestyle and long-term plan.

Step 6: Property checks that save you thousands

Location red flags

Before you fall in love with a home, pressure-test the location. Pull the council and state flood maps and check overland flow, creek lines and storm surge. Stand on the street at peak hour and listen for trucks; living on a main road can dent resale and rental appeal. Look up high-voltage transmission lines, substations and those green utility boxes that can sit on verges. Ask your conveyancer for a copy of the title and plan so you can spot easements for pipes, shared driveways or access that might limit extensions, pools or fencing. If the block is steep, think about drainage, retaining walls and slip risk. In flight paths or near busy schools, visit during drop-off and pick-up to see the real traffic pattern. A few checks now can save years of frustration later.

Building and pest

Always order independent pre-purchase building and pest inspections, even if the place looks spotless. You want a clear read on structure, moisture, pests and safety items. For older homes, go a step further: get a roofer to assess tiles, flashing and gutters, an electrician to review wiring and the switchboard, and a plumber to test drainage and, where relevant, send a camera down the sewer. Roofs, electrics and drainage are the big ticket repairs that can blow a first home buyer’s budget. Buying a unit or townhouse? Add a strata records inspection to check levies, the sinking fund and any defect history. Use the reports to renegotiate, set aside repair funds or walk away if the numbers no longer stack up. Future you will be very glad you checked.

Step 7: Price the property like a valuer

Build a comps file

Treat pricing like a mini valuation. Start with recent comparable sales in the same suburb and school catchment, ideally settled in the last three to six months. Ignore list prices and focus on what buyers actually paid. Pull six to ten solid comps, then adjust each one for the things that move value: bedrooms, bathrooms, parking, land size and usable land, renovation quality, orientation, street noise, outlook and any extras like a pool or studio. For houses, compare price per square metre of land; for units and townhouses, compare internal area and car spaces. Create a simple table with links and photos, write a one-line reason for each adjustment, and finish with a tight target range plus a firm walk-away number. This comps file gives first home buyers clear evidence for offers, helps at auction, and makes renegotiation after building and pest far easier.

Step 8: Negotiate with a plan

Offer playbook

Go in friendly and professional. Agents are people first, and a calm buyer who returns calls, turns up on time and explains their offer stands out. Lead with your price logic rather than a random number. Share a short comps summary that shows why your figure makes sense, then stick to it. If the agent counters, move in small, deliberate steps and only if new facts justify it, such as a stronger comp or extra inclusions.

Clean terms help you win without overpaying. Have pre-approval ready, proof of funds for the deposit, and a clear settlement window that suits the seller. Keep conditions tight and practical, and submit everything in writing with expiry times so the process keeps moving. Use precise numbers rather than round ones, and consider a larger initial deposit to signal commitment. If there is early interest, ask the agent what the seller values most: price, speed, rent-back, or certainty. Shape your offer to match that priority while staying within your comps range and walk-away number. If you want a steady hand on the deal, compare trusted buyer’s agents on BuyerAgentFinder for support with pricing, negotiation and offer strategy.

Step 9: Contract conditions that protect you

Subject to finance

Make formal loan approval a condition of your offer, with timeframes your broker is confident you can meet. In private treaty sales a common window is 7 to 21 days, set to match the lender’s processing time and your document readiness. Auctions are usually unconditional, so you need finance sorted before auction day. Keep your broker, conveyancer and agent in the loop so dates are realistic and no one is guessing.

Subject to building and pest

Ask your conveyancer to include wording that lets you walk away or renegotiate if major issues show up. A clear building and pest clause gives you breathing room to organise inspections and respond to what they find. If the report flags structural problems, moisture, termites or serious safety defects, you can seek a price reduction, request repairs, or cancel within the clause timeframe.

Early access for quotes

If both parties agree, you can add a limited access clause before settlement so trades can measure, quote or schedule works. Keep it narrow, set specific times, and make sure insurance and keys are handled properly. This clause helps first home buyers hit the ground running on move day without paying extra or rushing decisions. A good conveyancer will tailor the wording to your state and the property type.

Step 10: From conditional to unconditional

Once your offer is accepted, treat the cooling-off and conditions window like a short project. Set daily check-ins with your broker and conveyancer so finance, valuations and searches move in step. Keep your documents flowing fast and answer lender queries the same day. In parallel, book any extra specialist checks straight away, such as roofing, electrical or drainage for older homes, plus strata records for units and townhouses. As reports arrive, review them with your conveyancer and builder, agree on any variations to price or repairs, and confirm when each condition is satisfied. When finance is formally approved and the inspection boxes are ticked, your conveyancer will confirm you are ready to go unconditional.

Step 11: Settlement and the first 30 days

Title and utilities

On settlement day, make sure the transfer paperwork shows your full legal name correctly and, if buying with someone else, the right form of ownership (joint tenants or tenants in common). Keep the title confirmation with your settlement statement and loan documents so it’s easy to find later.

Next, line up the essentials. Activate building and contents insurance, then set up council rates, water, electricity and gas in your name. Take clear photos of all meter readings on day one and save them with your files. If the home is in a strata scheme, contact the owners corporation to update your details, collect keys and remotes, and confirm levy dates. Set direct debits for bills so nothing slips through while you settle in.

Before the boxes stack up, do a slow move-in walk-through. Test lights, power points, stove and oven, hot water, heating and cooling. Run taps, flush toilets and check drains for slow flow. Look for roof stains after rain, check smoke alarms and the safety switch, and note any damage that wasn’t visible at handover. Change locks or re-key cylinders, photograph appliance serial numbers, and file warranties and manuals. A careful first day saves headaches later and keeps your first home buyer checklist on track.

Step 12: Six to 12 months later

Revalue and plan your next move

After six to twelve months in your home, take stock. Ask your broker to arrange a desktop or full valuation and review your rate, features and fees. If the value has lifted or you’ve paid the balance down, you may be able to refinance to a sharper rate, add or optimise an offset account, or unlock a modest equity release for renovations, a safety buffer or your first investment property. Run the numbers at current and higher interest rates, check your loan-to-value ratio and any break or application costs, and keep a solid emergency fund. This quick review closes the loop on your first home buyer plan and sets you up for the next clear step.

Common first-home-buyer mistakes

The biggest slip-ups are simple to avoid. Skipping a building and pest inspection to save a few hundred dollars can turn into a five-figure repair bill. Trusting online price estimates instead of recent comparable sales leaves you exposed at offer time; build a comps file and anchor your price to evidence. In private-treaty sales, signing without a clear subject to finance clause can trap you if the lender says no. And don’t forget location checks: use council and state flood maps, read the title, and look for easements that restrict extensions, pools or access. Taking these basics seriously gives first home buyers in Australia a cleaner, safer path to getting the keys.

Where BuyerAgentFinder helps

Compare and choose a buyer’s agent with confidence

If you want a steady hand in your first purchase, BuyerAgentFinder makes it easy to compare buyers agents across Australia. You can shortlist verified buyer’s agents, see who fits your brief and budget, and match with people who know the local streets, recent sales and off-market chatter. That support pays off at offer time, with sharper pricing, cleaner terms and calmer negotiations. It also saves hours of calls and inspections, and helps you avoid costly missteps like overpaying or missing contract issues. When you are ready, use BuyerAgentFinder to line up a couple of options, ask the right questions and choose the agent who will work hardest for you.