Process For buying a house
Step 1. Clarify your goals and budget
Before looking at properties, it’s important to understand what you’re aiming for and what feels financially comfortable. This includes thinking about where you want to buy, the type of property that suits your lifestyle, and how much you’ve saved for a deposit and costs. This step is about setting realistic expectations, not pushing your limits.
Step 2: Understand your borrowing power
Your borrowing power is how much a lender may be willing to lend you, based on your income, expenses, debts and financial history. Online calculators can give a rough estimate, but a personalised assessment provides a much clearer picture. Knowing this early helps you search with confidence and avoid disappointment later.
Step 3: Get pre-approval
Loan pre-approval gives you conditional approval for a home loan up to a certain amount. While it’s not a guarantee, it shows agents and sellers that you’re a serious buyer and helps guide your property search. Pre-approval also highlights any conditions that need to be met before final approval.
Step 4: Build your buying team
Buying a home is not something you need to do alone. At this stage, it’s helpful to engage a conveyancer or solicitor to review contracts and guide you through the legal process. You may also choose to line up building and pest inspectors so you’re ready when you find the right property.
Step 5: Start searching for the right property
Once you understand your budget and have pre-approval in place, you can confidently begin your property search. This may include attending inspections, researching suburbs, comparing recent sales and asking questions about the property. It’s normal for this step to take time — finding the right home is rarely instant.
Step 6: Review the contract and conduct inspections
Before making an offer or bidding at auction, your conveyancer or solicitor should review the contract of sale. For private purchases, you’ll usually arrange building and pest inspections to identify any issues with the property. Understanding the contract conditions and your rights at this stage is crucial.
Step 7: Make an offer or bid at auction
If you’re buying via private sale, you’ll negotiate the price and conditions with the seller or agent. If you’re buying at auction, you’ll need to be fully prepared, as auctions are typically unconditional. This is where having clarity around your finances and legal advice makes a big difference.
Step 8: Exchange contracts
Contract exchange is when both the buyer and seller sign the contract and it becomes legally binding. In most private sales, a cooling-off period applies, although this varies by state. At auction, contracts are exchanged immediately, and there is no cooling-off period.
Step 9: Final loan approval and settlement preparation
After contracts are exchanged, your lender completes the final loan approval process and prepares the loan documents. Your conveyancer or solicitor will coordinate with the lender and seller to prepare for settlement. During this time, you’ll also arrange insurance and finalise any outstanding requirements.
Step 10: Settlement and getting the keys
Settlement is when ownership of the property officially transfers to you. Your lender provides the funds, your conveyancer finalises the legal transfer, and once settlement is complete, you receive the keys to your new home. From here, you’re officially a homeowner.
Step 11: Move in and settle into your new home
After settlement, you can move in, set up utilities and start making the space your own. This is also a good time to review your loan structure and ensure it continues to suit your needs over time.