plainmoneyThe nitty-gritty of property, stocks & money for everyday Australians

Your path to buying a home

Buying your first place feels like a maze. It isn’t — it’s six steps in a line. Here’s the whole road on one map. Tap any step to open the detail, see what to watch for, and jump straight to the tool that answers the money question at that stage.

Tap a step to expand it in place. 0 of 6 done
  1. 1

    Your deposit is the cash you put in up front. The bigger it is, the less you borrow and the less it costs you. The magic number is 20% of the price — hit that and you avoid Lenders Mortgage Insurance entirely. Below 20%, the bank adds LMI, which on a typical first home can be $10,000–$40,000+.

    But “20% or nothing” is a myth. Plenty of buyers get in with 5–10%, accepting LMI as the price of starting sooner. First Home Buyer schemes can also waive it. The real question is: how long until I have enough, and is it worth waiting? Plug in your numbers — the chart updates live.

    See it on your numbers

    Savings runway — the month your balance reaches each deposit target

    Deposit you need

    $85,000

    10% of $850,000

    Time to get there

    2 yr 4 mo

    at $2,000/month

    LMI at this deposit

    ~$19,392

    added to your loan

    Save by waiting for 20%

    ~$19,392

    LMI avoided · 5 yr 10 mo to reach 20%

    Waiting for 20% means buying ~3 yr 6 mo later — weigh the LMI you’d save against the rent you’d pay meanwhile and any price growth over that time.

    What to watch for
    • The deposit isn’t the whole cash bill. You also need stamp duty, fees and a buffer — see step 2’s breakdown.
    • LMI rises sharply as your deposit shrinks. A 5% deposit costs far more in LMI than 10%. The cliff is real.
    • Genuine savings. Lenders often want to see you’ve saved part of the deposit yourself over 3–6 months, not just received a lump sum.
    Compound interest calculator Borrowing power
  2. 2

    Pre-approval is a lender saying “based on your income, debts and deposit, we’d likely lend you up to $X.” It turns house-hunting from guesswork into a real budget, and tells agents you’re serious.

    Crucially, your borrowing power is capped by serviceability — lenders test you at your interest rate plus a 3% buffer. And the cash you need to settle is more than the deposit: add stamp duty, government fees, and LMI if your deposit is under 20%. Here’s the full “cash to get the keys”, built from the price and deposit you set in step 1 (NSW, FY2026–27 rates):

    Your cash to get the keys

    Deposit $85,000 Stamp duty $32,437 LMI $19,392 Fees & buffer $3,343

    Total cash needed

    $140,172

    to settle on $850,000

    First home buyer?

    NSW: $0 duty up to $800k, tapering to $1m

    What to watch for
    • Pre-approval expires (usually ~3 months) and isn’t a guarantee — the final loan still depends on the actual property valuing up.
    • Don’t over-apply. Multiple hard credit checks in a short window can dent your score. Pick a lender or use a broker.
    • Existing debts shrink your limit. A car loan or big credit-card limit can cut your borrowing power by tens of thousands.
    Borrowing power calculator Stamp duty calculator
  3. 3

    Now you shop with a real budget. Set up alerts, go to open homes, and learn a suburb properly before you commit — visit at different times, check the commute, the noise, the flood and bushfire maps. Most buyers inspect 15–40 properties before they buy.

    Two sale types, two games. Private treaty (a listed asking price) lets you negotiate calmly. Auction is faster, public, and has no cooling-off period — you need your finance and checks sorted before you raise your hand. Either way, judge a place on what it will cost and yield you, not the cushions.

    What to watch for
    • The agent works for the seller, not you. Be friendly, but treat the price guide as a starting point, not gospel.
    • “Offers over” and price guides can be set low to draw a crowd. Check recent sold prices nearby, not just asking prices.
    • Auctions have no cooling-off. If you win, you’re bound on the day — so do due diligence (step 4) before, not after.
    Property growth & prices Rental yield checker
  4. 4

    This is where you spend a little to avoid a disaster. Get a conveyancer or solicitor to review the contract, order a building & pest inspection (around $400–$700), and — for a unit — a strata report. Together these usually cost $800–$2,000 and routinely save buyers far more.

    You’re hunting for deal-breakers: structural cracks, termites, asbestos, illegal building work, a broke strata fund, or zoning that kills your renovation plans. Finding them now is leverage to negotiate — or walk.

    What to watch for
    • Don’t skip the inspection to win a bidding war. A $600 report can save a $60,000 mistake.
    • Strata red flags: a near-empty sinking fund, recent special levies, or active defect disputes mean future bills land on you.
    • Check finance lines up. Your formal loan approval depends on the bank’s valuation matching the price — a low val can blow a hole in your deposit.
    Buying costs guide
  5. 5

    Time to put a number on it. In a private sale you can offer below asking and negotiate price, settlement length and inclusions — and you usually get a short cooling-off period as a safety net. At auction, the highest bid above reserve wins on the spot, contracts exchange immediately, and there’s no cooling off.

    Offers can be conditional (“subject to finance”, “subject to building & pest”) — weaker against competing buyers but far safer for you. An unconditional offer is stronger but riskier. This is where the homework in steps 2 and 4 pays off: you can move fast because you’re ready.

    What to watch for
    • Set a hard walk-away price before you start — and stick to it. Auction-room adrenaline is expensive.
    • Get any deal in writing. A verbal “yes” on a private sale isn’t binding until contracts are signed and exchanged.
    • Conditions protect you. Dropping “subject to finance” to win can leave you liable if the loan falls through.
    Mortgage repayment calculator
  6. 6

    Exchange is the legal moment of commitment: both parties sign identical contracts, you pay the deposit (usually 10%), and the deal is locked. From there a settlement period of around 4–6 weeks runs.

    During settlement your lender finalises the loan, your conveyancer arranges the title transfer and adjusts rates and water, and you do a final inspection to check the place is as agreed. On settlement day the balance is paid, the title transfers, and you get the keys. Stamp duty is paid around now too (generally within 3 months of exchange in NSW). Done — you own a home.

    What to watch for
    • Do the final inspection. Make sure nothing’s broken or removed since you last looked — it’s your last chance to flag issues.
    • Have settlement funds ready early. Delays cost penalty interest per day; banks can be slow to release.
    • Budget the ongoing costs — council rates, strata, insurance and maintenance start the day you own it, on top of the mortgage.
    Mortgage calculator True cost of owning

Now run your real numbers

Each step points to a tool. Here they all are in one place — nothing on this site is a dead end.

Borrowing powerHow much a lender will likely lend you Stamp dutyYour upfront duty, by state & buyer type Mortgage repaymentsWhat the loan costs each month Compound interestHow fast your deposit can grow

General information, not financial advice. Figures use NSW transfer-duty, First Home Buyers Assistance Scheme and indicative LMI settings for FY2026–27 and are estimates for illustration only. Stamp duty thresholds are indexed each 1 July; LMI varies by lender, loan size and deposit. Government fees and timeframes vary by state, lender and property. Confirm your own numbers with a licensed broker, lender or conveyancer before acting. Sources: Revenue NSW (transfer duty & FHBAS), typical LMI premium tables. Reviewed June 2026.