Buying your first home in Sydney feels overwhelming until someone breaks it down. Here's the full process — from "I want to buy" to keys in your hand — with every step explained simply.
8
Steps to buying
3–6
Months typical timeline
5%
Min deposit (with FHBG)
$50K+
Grants available
The 8 Steps to Buying Your First Home in Sydney
Work Out Your Budget & Borrowing Power
Before anything else, understand what you can actually borrow. Your borrowing power depends on your income, expenses, existing debts, and the size of your deposit. Most lenders assess you at approximately 6x your gross income — but this varies significantly by lender and your financial profile.
Use our Borrowing Power Calculator for a starting estimate, then speak with a broker to get a precise figure across 30+ lenders.
Check What Grants You Qualify For
As a first home buyer in NSW, you may be eligible for:
• First Home Guarantee (FHBG): Buy with 5% deposit, no LMI, income and price capped
• Stamp Duty Exemption: $0 stamp duty under $800K, concession to $1M
• First Home Owner Grant (FHOG): $10,000 cash for new builds under $600K
These schemes can be stacked. A broker will confirm your eligibility and ensure you don't miss anything. See all first home buyer schemes →
Get Pre-Approved
Pre-approval (also called conditional approval or AIP — Approval in Principle) means a lender has assessed your finances and confirmed they'll lend you up to a certain amount — subject to finding a suitable property.
Pre-approval typically lasts 3–6 months. It gives you confidence when making offers and tells sellers you're a serious buyer. Don't make an offer without pre-approval. Your broker handles the pre-approval application across multiple lenders to find your best option.
Choose Your Suburb & Start Inspecting
With your budget confirmed and pre-approval in hand, start looking for properties. Attend open homes, set up property alerts on Domain and realestate.com.au, and begin to understand what your budget realistically buys in your target area.
Not sure which Sydney suburb fits your budget? See our affordable suburbs guide or our Western Sydney ranking.
Make an Offer / Bid at Auction
Once you find the right property, you'll either negotiate a private treaty sale or bid at auction:
Private treaty: You make a written offer, the vendor accepts, rejects, or counters. You usually have a cooling-off period of 5 business days in NSW (waived in some cases).
Auction: No cooling-off period — if you win, you exchange unconditionally and pay your 10% deposit on the day. Have your solicitor review the contract beforehand and your building/pest inspection done before bidding.
Exchange Contracts
Exchange is when the sale becomes legally binding. Both parties sign the contract of sale, and you typically pay a 10% deposit (sometimes negotiated to 5%). Once exchanged, neither party can walk away without legal penalty (after the cooling-off period).
Your solicitor or conveyancer handles contract review and exchange. Budget ~$1,500–$2,500 for conveyancing. Get your conveyancer engaged before you start making offers — not after.
Formal Loan Approval
Once you've exchanged, your broker submits the full loan application to the lender — including the signed contract, building inspection, and valuation. The lender orders a valuation of the property and formally approves the loan (unconditional approval).
This typically takes 5–14 business days. Settlement is usually 4–6 weeks after exchange for established properties; longer for new builds.
Settlement Day & Keys!
Settlement is when the final balance is paid to the vendor and the property transfers to your name. Your solicitor and the bank handle the mechanics — you don't physically attend. The title is registered electronically, and the real estate agent calls you to collect the keys.
Do a final inspection (pre-settlement inspection) 1–3 days before to confirm the property is in the same condition as when you bought it.
What Does the Full Timeline Look Like?
A typical first home purchase in Sydney takes 3–6 months from "let's start" to settlement. Here's how that time typically breaks down:
- Month 1: Financial assessment, broker meetings, pre-approval application
- Month 2–3: Pre-approval granted, suburb research, open home inspections
- Month 3–4: Offer made, contract review, exchange
- Month 5–6: Formal approval, settlement preparation, settlement day
If you're buying a new build or house-and-land package, the timeline extends significantly — typically 12–18 months from signing the building contract to completion.
How Much Do You Need Upfront?
Typical Upfront Costs — $800K Purchase, First Home Buyer NSW
- • Deposit (5% with FHBG): $40,000
- • Stamp duty (first home buyer under $800K): $0
- • Conveyancing / solicitor: ~$2,000–$2,500
- • Building + pest inspection: ~$500–$800
- • Lenders mortgage insurance (with FHBG): $0
- • Moving costs: ~$500–$1,500
- • Total needed: ~$43,000–$45,000
Do You Need a Broker?
Technically no — you can go directly to a bank. But here's why most Sydney first home buyers use a mortgage broker:
- Brokers compare 30+ lenders — banks only offer their own products
- Brokers handle your FHBG application (the scheme only works through participating lenders)
- Brokers are paid by the lender, not you — their service is free
- Brokers guide you through every step, especially useful if this is your first time
- A good broker can get your application approved where the bank rejected it, by matching you with the right lender
At Mortgagefy, we've helped hundreds of Sydney first home buyers — from Western Sydney to the Hills District — navigate this process. Learn more about our first home buyer service or call us on 0432 634 648.
Start Your First Home Journey
Tell us where you're at and we'll tell you exactly what's possible — which suburbs, which grants, which lenders, and what your repayments would look like.
Ready to talk to a broker?
Get a straight answer about your borrowing power — no credit check, no obligation. Our Sydney mortgage broker team is available Mon–Sat 9am–7pm.