Buying a Home

See real estate.

How to buy a house

1. Find the best home loan rate and get a pre-approval. This should be the first step you actually do in practice since a pre-approval confirms your price range.
   • A mortgage broker can help identify home loans. They’re usually free for you to consult, however they earn a commission from the lenders.
     • You will need to provide proof of income and proof of bank balance to show you can afford the initial deposit.
     • The broker helps get a pre-approval (also called ‘conditional approval’) from a lender, which is a document confirming that the lender is willing to sell you a mortgage.
       • This doesn’t commit you to the loan, but gives you certainty that you’re able to take it if you want to.
2. Find a house. Expect the search to take months.
3. Save money for a deposit and other expected transaction costs.
   • ≥20% of a target property’s value to avoid paying the lender’s mortgage insurance (LMI).
   • Stamp duty at approximately 3-5.5% of the property’s value. It needs to be paid within 30 days of settlement.
   • Conveyancing fees.
4. Offer. There are mainly 2 ways to buy:
5. Conveyancing advice for signing the contract.
6. Building inspection and pest inspection.
   • Pay for a report from a reputable professional.
   • The timing of the inspections matters and can be a part of your conditional offer to buy the house in a private treaty. It can also help with negotiating down a price with the seller. For an auction, have these inspections done prior to the auction.
7. Finalise loan with the bank.
8. Pre-settlement:
   • You are entitled to a pre-settlement inspection to verify that the house is still in the same condition.
   • Get insurance as soon as possible.
   • Consider changing locks.
9. Settlement.
   • Expect lazy cleaning by the previous owner-occupier.
   • The time prior to settlement allows for you to plan for getting the property tenanted as soon as possible. Get quotes for repairs during this time.
   • Ensure utility service providers have switched fully to you.