October 1, 2026
A Step By Step Path to Your Keys
Buying your first home is a major milestone, but knowing where to start can be one of the hardest parts.
There is more to buying a home than saving a deposit and finding a property you love. Your credit history, borrowing capacity, upfront costs, government assistance, loan structure and legal requirements can all play a role in the process.
The good news is that you do not need to work everything out at once.
This First Home Buyer Guide 2026 takes you through the key stages, from getting your finances ready and understanding available support to securing finance, choosing a property, and reaching settlement day.
Phase 1: Build Your Financial Foundation
Start before you start house hunting
One of the biggest mistakes first home buyers can make is waiting until they find their dream home before getting their finances organised.
Ideally, start preparing several months before you plan to buy. This gives you time to understand your borrowing position, improve your financial habits and identify any issues that could affect your loan application.
Review your credit history
Lenders look at your financial history when assessing a home loan application.
Before applying, review your existing debts and accounts. Consider whether you have unnecessary buy now, pay later accounts, outstanding defaults or other commitments that could affect your borrowing capacity.
If there are issues on your credit report, dealing with them early can give you more time to understand your options.
Understand your borrowing capacity
A mortgage calculator can give you a rough estimate of what you may be able to borrow, but it is not the same as a formal assessment.
Lenders consider factors including your income, expenses, existing debts, deposit and overall financial position when determining how much you may be able to borrow.
It is also important to remember that the maximum amount a lender may offer is not necessarily the amount you should spend.
Understanding your realistic budget early can help you focus your property search and avoid stretching yourself too far.
Budget for more than your deposit
Your deposit is only one part of the upfront cost of buying a home.
You may also need to allow for costs such as conveyancing, building and pest inspections, loan fees, valuation fees, moving expenses and transfer duty where applicable.
The amount you need will depend on your circumstances, the property you purchase and the assistance available to you.
Creating a complete buying budget before you start looking can help prevent unexpected costs later.
Phase 2: Understand First Home Buyer Assistance
There are several Australian Government and state-based programs that may help eligible first home buyers.
However, each scheme has its own eligibility requirements, property price limits and application process. It is important to check the current rules before relying on a particular program.
First Home Guarantee
The Australian Government’s Home Guarantee Scheme includes the First Home Guarantee, which can allow eligible first home buyers to purchase a home with a deposit as low as 5% without paying Lenders Mortgage Insurance.
The scheme has specific eligibility requirements, including property price caps and other conditions, so it is important to check whether you qualify before making plans around it.
Help to Buy
Help to Buy is a shared equity scheme designed to help eligible home buyers purchase a home with a smaller deposit.
Under the scheme, the Australian Government contributes a percentage of the purchase price and takes an equity interest in the property.
Eligibility requirements, income caps, property price caps and other conditions apply, so buyers should assess the current rules before deciding whether the scheme is suitable.
First Home Super Saver Scheme
The First Home Super Saver Scheme can allow eligible first home buyers to use certain voluntary superannuation contributions towards a home deposit.
Eligible concessional contributions are generally taxed at 15% within super, and the scheme allows eligible contributions to be released subject to annual and lifetime limits. The current limits include $15,000 of eligible contributions per financial year and $50,000 across all years.
There are important rules around eligibility, requesting a determination and releasing the funds, so it is worth understanding the process before using this strategy.
NSW first home buyer assistance
For eligible buyers in NSW, the First Home Owner Grant provides $10,000 for eligible new homes, subject to the relevant property and eligibility requirements. For a newly built home, the purchase price must not exceed $600,000.
The NSW First Home Buyers Assistance Scheme can also provide a full exemption from transfer duty for eligible first home buyers purchasing a new or existing home valued at up to $800,000. Homes valued above $800,000 and below $1 million may qualify for a concessional rate.
Because government programs and eligibility requirements can change, always check the current requirements before making financial decisions.
Phase 3: Start the Property Hunt
Once your finances and finance options are understood, you can start looking for the right property.
But being prepared is just as important as finding a property you like.
Get pre-approval
Pre-approval can give you a clearer understanding of your potential borrowing position before you start making offers.
It can also help you establish a realistic price range and give you greater confidence when you find a property you are interested in.
Remember that pre-approval is not the same as final loan approval. Your lender will still need to assess the property and complete the formal approval process before settlement.
Do your due diligence
It can be easy to get caught up in the excitement of finding your first home, but taking the time to investigate the property is important.
Depending on the property and circumstances, this may include arranging independent building and pest inspections, reviewing the contract, and checking relevant property information.
A professional conveyancer or solicitor can help you understand the legal side of the purchase and identify issues that may need attention before you sign.
Understand how you are buying
The process can be different depending on whether you are purchasing through private treaty or at auction.
With a private treaty purchase, there may be a cooling off period depending on the circumstances and state or territory rules.
Auction purchases can involve different conditions, and a successful bid may result in an unconditional contract. Buyers should understand the contract terms and have their finance and legal checks completed before bidding.
Phase 4: From Contract to Settlement
You have found the property, your offer has been accepted, and you are ready for the final stage.
This is where your conveyancer, solicitor and lender will help manage the legal and financial requirements leading up to settlement.
- Contract accepted
Once the contract is signed and exchanged, your conveyancer or solicitor will manage the legal transfer process.
Your lender will also work through the formal approval and documentation required for your loan.
The settlement period varies depending on the contract and circumstances, so make sure you understand the key dates from the beginning.
- Complete your final inspection
A pre-settlement inspection gives you an opportunity to check the property before settlement.
Your conveyancer or solicitor can advise you on the timing and what to look for. Generally, you want to confirm that the property is in the condition expected under the contract and that any agreed inclusions remain in place.
- Settlement day
Settlement is the point where the purchase is completed and ownership transfers to you.
In many Australian property transactions, settlement is completed electronically through a platform such as PEXA. PEXA enables conveyancers, lawyers and financial institutions to manage property transfers and settlement funds digitally.
Once settlement has been completed and the relevant requirements have been met, you can collect the keys and start your next chapter as a homeowner. 🏠
Your First Home Buyer Checklist
Before you start seriously looking at properties, consider whether you have:
✓ Reviewed your finances and existing debts
✓ Checked your credit position
✓ Worked out a realistic budget
✓ Saved your deposit and allowed for buying costs
✓ Investigated relevant government assistance
✓ Spoken with a mortgage broker or lender
✓ Obtained pre-approval where appropriate
✓ Researched the property market and areas you are considering
✓ Arranged independent inspections where appropriate
✓ Had the contract reviewed by a conveyancer or solicitor
✓ Understood your loan repayments and ongoing property costs
✓ Prepared for settlement and your move
Start Planning Before You Start Looking
Buying your first home does not have to happen all at once.
The earlier you understand your finances, borrowing position and available options, the more prepared you can be when the right property comes along.
At FMS Group, our lending team can help you understand your borrowing options, compare suitable lending solutions and guide you through the finance process.
If you are thinking about buying your first home, starting the conversation early can help you understand what is possible and what you need to do next.
Ready to take the first step? Call FMS Group on 1300 982 499 to discuss your home loan options.
Government schemes, eligibility requirements, property price caps and lending criteria can change. The information in this guide is general in nature and should not be relied upon as personal financial or legal advice. Check the current requirements with the relevant government agency and your professional advisers before making decisions.