First-Home Buyer Guide: From Saving a Deposit to Settlement

Buying your first home is a massive undertaking. Between saving a deposit, navigating bank requirements and trying to understand government grants, it’s normal to feel a bit out of your depth. There’s a lot of noise out there, and the process can feel overwhelming before you’ve even walked through your first inspection.

The reality is that buying a home involves a lot of moving parts and a fair amount of admin. This guide is designed to cut through the complexity by breaking the journey down into logical, manageable steps. From sorting your finances to the day you actually get the keys, here is what you need to know to navigate the process with a bit more confidence.

Identifying What You Actually Need

Before you start browsing listings, it’s important to get a clear picture of your finances. Most lenders prefer a deposit to avoid paying lenders mortgage insurance (LMI). 

For example, a $500,000 home would typically require a $100,000 deposit. That said, some lenders accept smaller deposits, often from 5–10%, though this usually means paying LMI, which adds to your costs.

Government Help Available

Many first-time buyers don’t realise there are government programs designed to make entering the property market easier. Depending on your state or territory, these may include:

• Stamp duty concessions or exemptions – Some states offer first-home buyers partial or full stamp duty relief, which can save thousands.

• First Home Owner Grant (FHOG) – A one-off cash payment for eligible buyers purchasing a new or substantially renovated home.

• Shared equity schemes – These programs allow the government or a lender to take a stake in your property, reducing the deposit you need.

• State-specific grants and incentives – Some states offer additional support for new builds, regional properties or buyers under a certain age.

It’s worth researching exactly what’s available where you plan to buy. These programs can reduce upfront costs significantly and make your first home more attainable.

Creating Your Savings Plan

Saving for your first home might not be exciting, but it’s the foundation of homeownership. Start by tracking every dollar you spend for a month. You’ll be surprised how small everyday costs add up. That daily coffee habit? It could easily cost over $1,000 a year.

Open a separate savings account specifically for your deposit, and give it a meaningful name, like ‘My Future Home’, to stay connected to your goal. Choose an amount you can be consistent with based on your income and expenses. Work it into your monthly budget and set up automatic transfers so you don’t have to think about it. You can always add in any extra funds you receive. Consistency is key: small, regular contributions grow over time.

Look for areas where you can cut back without feeling deprived. Maybe you don’t need multiple streaming subscriptions or you could cook at home more often. These little adjustments now can make a big difference when it comes time to step across the threshold of your own home.

Getting Your Finances Ready

Lenders look at more than just the size of your deposit when you apply for a home loan. They also assess your spending habits and general financial stability to ensure you can comfortably manage the long-term costs associated with property ownership. Here’s a simple checklist to get your finances in shape:

Check Your Credit Score

Check your score early. A good score can help secure lower interest rates and save you thousands over the life of your loan.

Tip: Regularly review your report to spot errors or issues before applying.

Manage Your Debts

• Pay off small debts if possible.

• Close credit cards you don’t use.

• Reduce credit limits on active cards.

• Avoid applying for new credit before buying.

Even small improvements can signal to lenders that you’re financially responsible.

Gather Your Paperwork

Having your documents ready makes the loan process faster and smoother:

• Payslips from the last two payslips

• Tax returns for the past two years

• Bank statements showing three months of genuine savings

• Identification documents

• Proof of any additional income

• List of liabilities and assets

• Monthly expenses

Being organised not only speeds up approval but also shows lenders you’re serious about buying.

Working with the Right Professionals

You don't have to figure everything out alone. A mortgage broker in Richmond can explain your loan options and help you find better deals than you'd find by yourself. They know which banks offer what and they do the paperwork heavy lifting.

Your broker becomes your guide through the confusing world of home loans. They can tell you exactly how much you can borrow and what your repayments will be. This information helps you house hunt within your real budget, not just your dream budget.

Developing Your Finance Strategy

Smart buyers think beyond simply getting approved for a loan. Your finance strategy should factor in all the costs that come with owning a home, not just the mortgage. This includes insurance, council rates, ongoing maintenance and the surprise repairs that inevitably pop up.

To work out what you can truly afford, look at your monthly income minus all expenses, including your potential mortgage repayments. It’s also wise to leave room for emergencies. As a general guide, home loan repayments are often kept within around 30% of income.

You may also want to consider getting pre-approval before you start house hunting. This gives you a clearer idea of your borrowing limit and shows sellers that you’re a serious buyer. In competitive markets, pre-approval can help strengthen your position when making an offer.

Finding and Inspecting Properties

Now comes the fun part: looking at houses. Make a list of must-haves versus nice-to-haves.

Your Property Checklist

Having a clear idea of what matters most makes house hunting easier. A simple checklist helps you focus on your priorities, makes decision-making easier and reduces the chance of getting swept up in the moment.

Must-Haves:

• Number of bedrooms and bathrooms

• Location near work or schools

• Safe neighbourhood

• Within your budget

Nice-to-Haves:

• Garage or extra parking

• Outdoor space

• Modern kitchen

• Close to cafes and shops

The Inspection Process

Always get a professional building inspection. Spending $500 on an inspection can save you from buying a $50,000 problem.

What Inspectors Look For:

• Structural cracks and foundation issues

• Water damage and leaks

• Electrical and plumbing problems

• Pest infestations

• Roof condition

Don't let emotions cloud your judgment when problems are found.

Making an Offer and Settling

When you find the right property, your real estate agent will guide you in making an offer. Don’t be afraid to negotiate—the asking price is often just a starting point. Once your offer is accepted, the settlement period begins, which typically lasts between 30 and 90 days.

During settlement, your solicitor takes care of the legal work while the bank finalises your loan. You’ll also organise insurance and set up utilities. On settlement day, you simply collect the keys and officially take ownership of your new home.

Ready to Start Your Journey?

Buying your first home takes planning, patience and the right support. If you’re ready to turn your homeownership dream into reality, start by speaking with experts who can guide you every step of the way. Contact Richmond Residential today to get started. Every first-home buyer begins exactly where you are now. With the right roadmap, you’ll soon be turning the key to your very own home.