Australia’s property market remains competitive, particularly in Queensland where population growth is keeping demand high. In Brisbane, median house prices hover around $850,000, making it essential for first-home buyers to have a solid plan.

If you’re wondering how to buy a house in this dynamic market, a clear, step-by-step guide can help you stay on budget and sidestep costly pitfalls. From working out your finances to completing final inspections, a reliable roadmap builds confidence at every turn.

With mortgage rates, transfer duty and settlement periods to consider, knowing exactly which steps to take will keep you in control of your home buying journey. Ready to get started? Let’s dive into the eight simple steps every first-home buyer should follow.

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Step 1: Assess Your Finances

How to Calculate Your Home-Buying Budget

Start with a mortgage calculator to gauge your maximum borrowing capacity based on your income, expenses and credit score. Factor in:

• Home loan repayments at different interest rates
  
  
• Stamp duty (Transfer Duty).
  
  
• Council rates and strata fees if you’re buying an apartment or townhouse
  
  
• Land tax or property tax if you exceed the threshold values

Use comparison websites to see real-time home prices and mortgage rates. It will give you an idea of how much you’ll pay each month.

Hidden Costs to Plan For

On top of your purchase price, budget for:

• Legal fees or conveyancing for contract review and title searches
  
  
• Lenders Mortgage Insurance (LMI) if your home deposit is under 20%
  
  
• Home and building insurance from day one of settlement
  
  
• Moving costs and a small cash reserve for strata levies or body corporate fees
  
  
• Inspection costs: building and pest inspections, strata report fees

Failing to account for these can derail your entire schedule, especially around the settlement date.

Step 2: Check Your Credit Score

How to Check Your Credit Score for Free

Visit one of the Australian Credit Reporting Agencies (Equifax, Experian or illion) to request your credit report at no charge once a year. Review it for errors. Incorrect defaults or outdated personal information can lower your score.

Quick Credit-Boost Tips for a Better Rate

• Pay down credit card balances to under 30% of your limit.
  
  
• Avoid multiple home loan pre-approval applications in a short span. Each application can ding your score.
  
  
• Set up automatic repayments for all existing loans to show reliability.
  
  
• Keep old credit accounts open (if there are no annual fees) to lengthen your credit history.

A healthy credit score can save tens of thousands in interest over a 25-year mortgage.

Step 3: Save for a Down Payment

How Much Down Payment or Deposit Do You Really Need

In Australia, a 20% home deposit typically avoids LMI; however, first-home buyers may be able to secure a loan with a 5–10% deposit plus LMI if they qualify. For a $600,000 purchase price:

• 20% deposit = $120,000
  
  
• 10% deposit + LMI = $60,000 + LMI premium

Also, factor in the First Home Owner Grant and any state-based stamp duty concessions available to first-home buyers.

Down Payment Assistance Programs You Might Qualify For

• First Home Owner Grant (FHOG): A one-off payment up to $10,000 in some states
  
  
• Stamp duty exemptions or concessions for first-home buyers
  
  
• Regional Home Guarantee Scheme: Reduced deposit requirements in designated areas

Step 4: Work with a Mortgage Broker

Mortgage Broker vs. Direct Lender: Which Is Best?

• Mortgage Broker: Access to dozens of loan products, expert advice on market conditions, home loan pre-approval assistance, and negotiation on your behalf.
  
  
• Direct Lender: You deal directly with one bank. Sometimes, better rates but fewer options are available.

Key Questions to Ask Your Broker

1. What loan structures do you recommend, fixed, variable, or split?
   
   
2. How do you get paid? (Up-front fee, commission, or no cost?)
   
   
3. Can you estimate all fees, including application, valuation, and ongoing account fees?
   
   
4. What’s your turnaround time for pre-approval and final approval?

A good broker will guide you through the due diligence process, review the contract of sale, and advise you on applicable legal fees.

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Step 5: Get Mortgage Pre-Approval

Having a formal home loan pre-approval letter signals to real estate agents and sellers that you’re serious, so your offer on that off-market property or open house gets taken more seriously. You’ll know your maximum purchase price and can skip the panic if interest rates move before settlement.

Documents Required for Pre-Approval

• Proof of income: payslips, tax returns or profit and loss statements
  
  
• Identification: driver’s licence, passport or birth certificate
  
  
• Bank statements showing savings history (for home deposit)
  
  
• Existing loan statements and credit report

Step 6: Choose a Real Estate Agent

How to Find a Top-Rated Agent in Your Area

Look for local market reports and talk to friends who’ve recently bought. You might consider a buyer’s agent if you’re short on time or want off-market property alerts. Check online reviews and recent sales history. Did they sell homes close to your target price?

Questions to Ask When Interviewing Agents

• How many transactions have you completed in the last year?
  
  
• What’s your marketing plan (open houses, online listings, social media)?
  
  
• Can you provide references from recent first-home buyer clients?
  
  
• How do you handle multiple offers and bidding wars?

Having the right agent can make due diligence, like scheduling building inspections or arranging pest inspections, much smoother.

Step 7: Search for Your Dream Home

Use websites like realestate.com.au, Domain, and Homely to set up property alerts filtered by price range, number of bedrooms, and target suburbs. Also, check walk scores for local shops and transport. 

Compare schools on the MySchool website, test your commute with Google Maps and review council rates, land tax and body corporate fees for each area. Finally, visit open houses at different times to gauge traffic, noise and neighbourhood feel before shortlisting your favourites.

Once you’ve zeroed in on a certain house, don’t forget to closely inspect it!

Home Inspection Checklist

A thorough inspection helps you spot issues before you commit. Use this quick checklist to cover the essentials:

1. Building inspection: Hire a qualified building inspector to assess structural soundness, roofing and foundations.
   
   
2. Pest inspection: Get a certified pest inspection to uncover termites, borers or moisture damage.
   
   
3. Strata report: For apartments or townhouses, review the latest strata report for fees, levies and meeting minutes.
   
   
4. Inspection report review: Read the detailed inspection report carefully, noting any major repairs or safety concerns.
   
   
5. Service checks: Test electrical outlets, plumbing, hot water systems and ensure all smoke alarms and safety switches work.

Step 8: Make an Offer and Close

Review recent comparable sales to choose a competitive purchase price, then submit your written offer with a signed contract of sale. Include a cooling-off period clause and conditions for building and pest inspections to protect your interests. 

Once the seller accepts, engage your conveyancer to calculate legal fees, stamp duty and arrange title insurance ahead of the settlement date. On closing day, your lender releases funds, the title is lodged with the Titles Office, and you collect your keys to move into your new home.

How to Determine Your Offer Price

Use recent comparable sales (“comps”) within a 500-metre radius. Factor in market conditions: are prices rising or falling? Your pre-approval provides your maximum bid, but aim for a buffer to cover potential pest inspections or a higher purchase price.

Unlock Exclusive Home Loan Deals. Our Brisbane mortgage brokers at Cube Loans have insider access to special lender offers. Call us at 1800 774 756 or head to cubeloans.com.au to discover rates you won’t find online.

Frequently Asked Questions (FAQs)

How much do I need to earn to buy a $500,000 house in Australia?

As a rough guide, lenders often cap your borrowing at about 5–6 times your gross income. To borrow $400,000 (80% of $500,000) you’d typically need a salary of around $70,000–$80,000, depending on your living expenses, other debts and the interest rate.

Can I buy a house with a $10,000 deposit?

A $10,000 deposit on a $500,000 home is just 2 %, so most lenders will require you to pay Lenders Mortgage Insurance (LMI) or fall under a guarantor loan. Generally, you’ll need at least 5–10 % deposit (or use a government guarantee scheme) to avoid extreme LMI costs and secure more lenders.

What’s the cooling-off period for first home buyers?

In Queensland, the standard cooling-off period is five business days after you sign the contract of sale. During this time, you can withdraw by paying a small penalty (usually 0.25 % of the purchase price).

How long does the settlement take?

Settlement typically takes between 30 and 90 days from contract exchange, with 30–60 days most common. Your conveyancer will confirm the exact settlement date in your contract of sale.

What are the available home loans for first-time buyers?

First-home buyers can choose from variable-rate loans, fixed-rate loans, split loans, low-deposit/guarantor loans and package loans with offset accounts. Many lenders also offer special first-home buyer products with fee waivers or introductory rates.

Wrapping Up

You’ve now got a clear roadmap for how to buy a house, from budgeting and credit checks right through to the big handover of keys. Keep this guide close as you work through the pre-approval and settlement dates, knowing that each milestone moves you one step closer to the front door of your new home.

If you’d like a bit of extra support, our Brisbane mortgage brokers at Cube Loans are here with a free consultation to tailor a home loan plan just for you. 

Contact us on 1800 774 756 or visit www.cubeloans.com.au to book a no-obligation chat and take that final step toward your new front door with the right financing.