Most first home buyers don't know what they're missing until something delays their settlement. This checklist covers everything — documents, finances, legal steps, and hidden costs — so nothing catches you off guard.
12
Key checklist steps
5%
Min deposit (FHBG)
$0
Stamp duty <$800K
30+
Lenders compared
The Complete First Home Buyer Checklist (2026)
Use this as your master reference from the moment you decide to buy through to settlement day. Tick each item off as you go — skipping any of these is the most common reason approvals stall or fall through.
Step 1: Know Your Numbers Before You Start Looking
The biggest mistake first home buyers make is searching for properties before knowing what they can actually borrow. Your borrowing power depends on income, expenses, existing debts, and deposit size — and it varies by $80,000–$150,000 between lenders for the same profile.
- Use the Borrowing Power Calculator for a starting estimate
- Speak with a broker (free) to get figures across multiple lenders
- Factor in all costs — deposit + stamp duty (if any) + conveyancing + building inspection
- Understand your LVR (loan-to-value ratio) target: 80% or below avoids LMI on standard loans
Step 2: Check Which Government Schemes You Qualify For
NSW first home buyers in 2026 have access to multiple stacking incentives. Check eligibility for each before assuming you don't qualify.
- First Home Guarantee (FHBG): Buy with 5% deposit, no LMI — income capped at $125K single / $200K couple, price cap $900K in Sydney
- First Home Owner Grant (FHOG): $10,000 for brand new builds under $600K — paid at settlement
- Stamp Duty Exemption: Zero stamp duty for properties under $800K (saving up to $31,335)
- First Home Super Saver (FHSS): Withdraw voluntary super contributions for deposit — up to $50K per person
Can I stack multiple schemes?
Yes. FHBG + stamp duty exemption + FHOG can all apply to the same purchase if you meet each scheme's criteria. This is how some buyers get into a $750K property with only $37,500 in deposit and $10,000 back at settlement. Your broker handles the paperwork for all of them at once.
Step 3: Gather Your Documents Early
Document collection is where most applications slow down. Start gathering these as soon as you decide to buy — don't wait until a lender asks:
- Last 2 payslips (PAYG) or last 2 years tax returns (self-employed)
- Last 3–6 months bank statements (all accounts)
- Photo ID (passport or driver's licence)
- Evidence of genuine savings held for 3+ months
- Rental ledger (if currently renting — shows repayment history)
- Any existing loan statements (car loan, HECS, credit cards)
Step 4: Get Pre-Approval Before You Inspect
Pre-approval (also called conditional approval) is a lender's confirmation that they'll lend you up to a certain amount, subject to valuation and final checks. It's not a guarantee — but it makes you a credible buyer and tells you exactly what price range to search in.
Pre-approval typically lasts 3–6 months. Most brokers can have one in place within 48–72 hours of receiving your documents. At Mortgagefy, we compare across 30+ lenders to find the one that will give you the best terms for your specific profile.
Step 5: Understand the Buying Costs
Beyond your deposit, budget for these additional costs. Many first home buyers are surprised by how much these add up:
| Cost | Estimate | Notes |
|---|---|---|
| Stamp Duty | $0 | First home buyer, property under $800K |
| Conveyancer / Solicitor | $1,800–$2,800 | Handles legal transfer of property |
| Building & Pest Inspection | $500–$800 | Strongly recommended before exchange |
| Lender Fees | $0–$600 | Many lenders waive application fees |
| Moving Costs | $500–$2,000 | Varies by volume and distance |
| Total Extras | ~$3,000–$6,000 | Budget $5K+ on top of deposit |
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Steps 6–12: From Offer to Settlement
Step 6: Find Your Property and Make an Offer
Once you have pre-approval, you can search with confidence. When you find a property you want:
- Get a copy of the Contract of Sale from the agent — have your conveyancer review it before you sign anything
- Order a building and pest inspection before exchange
- Make a formal offer in writing through the agent
- If successful at auction: the contract is unconditional immediately — you must have finance fully ready
For private treaty sales (not auction), you typically have a 5-business-day cooling off period after exchange — giving you time to complete due diligence.
Step 7: Exchange Contracts
Exchanging contracts makes the agreement legally binding. At this point you'll pay the exchange deposit — typically 10% of the purchase price (though sometimes negotiable to 5%). This deposit is held in trust until settlement.
Your conveyancer will review the contract, negotiate any special conditions (e.g., subject to finance), and handle the exchange on your behalf. Never sign a contract without a conveyancer reviewing it first.
Step 8: Formal Loan Approval
After exchange, your lender sends a valuer to the property. Once the valuation comes back satisfactory, they issue formal (unconditional) approval. This is different from pre-approval — it means the loan is fully approved for this specific property.
The lender will then issue loan documents for you to sign. Read these carefully — your broker or conveyancer can explain any terms you're unsure about.
Step 9: Building Insurance (Mandatory Before Settlement)
Most lenders require you to have building insurance in place from the date of exchange. This is because you have an insurable interest in the property from that moment. Arrange this immediately after exchange — the agent can provide the relevant property details.
Step 10: Pre-Settlement Inspection
You're entitled to a final inspection of the property shortly before settlement (typically 1–2 business days prior). Use this to confirm:
- The property is in the same condition as at the time of purchase
- All inclusions listed in the contract are still present (dishwasher, light fittings, etc.)
- No new damage has occurred
- All keys, remote controls, and security codes are available
If anything is wrong, tell your conveyancer immediately — they can delay settlement until it's resolved.
Step 11: Settlement Day
Settlement is when the legal transfer of ownership occurs. Your conveyancer attends on your behalf and coordinates with the seller's solicitor and both lenders. You don't need to be physically present. What happens:
- Your lender transfers the loan funds to the seller's solicitor's trust account
- Your conveyancer ensures all legal documents are signed and registered
- Ownership is transferred to your name on the land title register
- You (or the agent) collect the keys
Settlement typically takes 42 days (6 weeks) from exchange, though this can vary. Budget for your first repayment to start 30 days after settlement.
Step 12: After Settlement — What to Do First
- Lodge your First Home Owner Grant application (if applicable) — your conveyancer or broker can assist
- Confirm your loan account is set up correctly and understand your repayment schedule
- Consider setting up an offset account to save interest from day one
- Update your address for electoral roll, Medicare, bank, and employer
- Set a reminder to review your interest rate in 12 months — rates change and refinancing is always an option
Mortgagefy clients in Southwest & Western Sydney
We specialise in guiding first home buyers through every step of this process — from pre-approval to settlement. We've helped hundreds of buyers in Liverpool, Campbelltown, Leppington, Parramatta, and Bankstown. The consultation is free.
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