Buying a property: FAQs

The very first step is entirely financial: you need to understand your budget. Before you browse properties online or head to a weekend open home, you need to know exactly how much a bank is willing to lend you.

The best way to start is by speaking with a mortgage broker. They will look at your income, savings, and living expenses to calculate your true borrowing power. Once you have a clear financial baseline, you can start hunting for properties within your realistic price range. You can find a local broker through Loan Market.

Saving a deposit requires a mix of discipline and utilising the right tools. Start by tracking your monthly spending, cutting out unnecessary luxuries, and setting up a dedicated, high-interest savings account with automatic transfers on payday.

You can also accelerate your savings by using the government’s First Home Super Saver (FHSS) scheme. This program allows you to make voluntary, before-tax contributions into your superannuation fund specifically to save for your first home, taking advantage of the lower tax rates inside super to build your deposit faster.

Depending on which state or territory you are buying in, you may have access to the First Home Owner Grant (FHOG). This is generally a one-off cash grant (often around $10,000, though it varies by state) paid by the government to eligible buyers. It's important to note that this grant is almost exclusively reserved for buying or building a brand-new home, an off-the-plan apartment, or a substantially renovated property. It is rarely available for established, existing houses.

Read more about first home buyer grants here.

The Australian Government's First Home Guarantee (part of the Home Guarantee Scheme) allows eligible first home buyers to purchase a home with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). The government essentially acts as a guarantor for the remaining 15% of the traditional deposit.

To be eligible, you must be an Australian citizen or permanent resident, be at least 18 years old, and intend to live in the property as an owner-occupier. The property must also sit below the specific price cap set for its region. Best of all, there are no income caps or waitlists, making this highly accessible if you have a strong income but are struggling to save a massive upfront deposit.

Read more about the 5% deposit scheme here.

Rentvesting is a property strategy where you rent a home to live in, usually in a lifestyle suburb close to work or family that you couldn't afford to buy in yet, while purchasing an investment property in a more affordable growth suburb that fits your budget.

This is an increasingly popular way for young Australians to get a foot on the property ladder without sacrificing their lifestyle. The tenant in your investment property helps pay down your mortgage, allowing you to build wealth through equity. Keep in mind that rentvesting can affect your eligibility for certain first home buyer grants, so it is crucial to verify the rules in your state - read more about first home buyer grants here.

The 2026 Federal Budget announced changes to negative gearing and CGT discount - read more about the Budget and the implications here.

A mortgage is simply a legal agreement where a bank or lender lends you the money to buy a property, and you agree to pay it back with interest over a set period (usually 25 to 30 years). The property itself acts as security for the loan.

To get a mortgage, you will need to submit an application showing proof of your identity, steady income (payslips), bank statements showing your savings history, and a breakdown of your current expenses and debts.

Because navigating dozens of different banks, interest rates, and loan features can be incredibly complex, we recommend speaking to the experts. For tailored advice on how to secure a home loan that is right for you, connecting with a broker at Loan Market is a key step in your journey. They will handle the heavy lifting, compare hundreds of loans on your behalf, and manage the application process from start to finish.

Traditionally, lenders prefer a deposit equal to 20% of the property’s purchase price. For example, if you are buying a house for $700,000, a 20% deposit is $140,000.

However, it's entirely possible to buy a home with a smaller deposit - sometimes as low as 5%. Keep in mind that if your deposit is under 20%, lenders usually require you to pay Lenders Mortgage Insurance (LMI), which protects the bank if you default on your loan. Speak to a broker at Loan Market to understand more.

Making an offer on a property can be done verbally by calling the agent, but it is best practice to submit it formally in writing. A formal offer outlines the price you are willing to pay and your specific conditions - such as being subject to finance approval or a satisfactory building and pest inspection.

To give your offer the best chance of acceptance, ensure your finance pre-approval is ready to go. If a property has just hit the market and you notice open home attendance is quiet, putting forward a strong, clean offer early can sometimes secure the home before other buyers get a look in.

An off-market property is a home that is for sale but is not being publicly advertised on major real estate websites or in print media. Sellers sometimes prefer this for privacy, or to test the waters before launching a full campaign. Registering your property preferences directly with your local Ray White office ensures you get alerted to these hidden opportunities before the rest of the market even knows they exist.

When inspecting a property, it is vital to balance emotion with logic. Look beyond the beautiful styling and focus on the fundamentals:

• The location: Proximity to public transport, schools, shops, and future infrastructure developments

• The layout and aspect: Does the floor plan suit your lifestyle? Does the home get good natural light (a north-facing aspect is highly prized in Australia)?

• Structural health: Keep an eye out for warning signs like wall cracks, sagging ceilings, damp smells, or poor water pressure

Many buyers make the mistake of assuming the deposit is the only cash they need to clear out of their bank account. Beyond the purchase price of the home, you must budget for the "closing costs" required to finalise the transaction. These hidden upfront costs include:

• Conveyancing and legal fees: Usually between $1,000 and $2,500
• Building and pest inspections: Approximately $400 to $800
• Loan establishment fees: Charged by your lender to set up the mortgage
• Registration of title and mortgage fees: Government transfer charges
• Removalist costs and utility connections: Variable moving expenses

Auctions can be emotional, fast-paced environments, which is why preparation is everything. Before you lift your paddle, ensure you have attended a few local auctions as a spectator to understand the rhythm of the caller.

On the day, set a strict walk-away budget limit based on your pre-approval and stick to it completely. Stand where the auctioneer and other bidders can see you clearly, call out your bids with absolute confidence, and try to dictate the pace of the increments rather than letting the auctioneer call the numbers. Remember, if you make the winning bid, the property is yours - there is no cooling-off period, and you must pay the deposit on the spot.

A cooling-off period is a statutory window of time immediately after you sign a contract of sale during which you can change your mind and cancel the purchase. The length of this period varies across Australia - typically ranging between two and five business days—and it does not apply to properties bought under auction conditions.

If you decide to pull out of the sale during this window, you can do so for any reason, though some states charge a small financial penalty (usually a tiny percentage of the purchase price). Buyers commonly use this short timeframe to finalise their formal finance approval or get their building and pest reports completed.

Yes, hiring a licensed conveyancer or property solicitor is highly recommended. Buying real estate involves complex legal contracts, title searches, and strict deadlines. A conveyancer reviews the contract of sale before you sign, ensures the property has no hidden legal issues or outstanding debts, manages the transfer of ownership, and coordinates the final financial settlement with your lender.

Stamp duty (also known as transfer duty) is a tax levied by state governments on property purchases. The buyer is always the one who pays it. It is usually paid on or before the day of settlement, though it is handled by your legal representative during the final transaction.

Note for first home buyers: Most Australian states offer substantial stamp duty exemptions or concessions specifically for first-time buyers, often completely eliminating the tax if the purchase price falls below a certain threshold.

A home inspection typically consists of a professional Building and Pest Inspection. Before you commit to buying a property (or before bidding at an auction), you hire independent, qualified inspectors to thoroughly examine the home.

The building inspector checks the structural integrity of the roof, foundations, and walls to ensure there are no major defects. The pest inspector looks for evidence of timber-destroying insects like termites. They provide you with a comprehensive written report, allowing you to walk away from a problematic property or negotiate the price down based on required repairs.