What Are the Steps in a First Home Buyer Checklist

Making the move into your first home requires more than just finding the right property.

Before you start attending open homes, you need a clear picture of what you can afford, which concessions you can access, and how to structure your application so it moves through smoothly. Queensland first home buyers have access to a range of support measures, but those concessions work differently depending on whether you're buying new or established, and where the property sits in relation to current price caps. A clear checklist helps you prepare the right documents, avoid delays, and make decisions that align with your budget.

Work Out What You Can Borrow Before You Start Looking

Your borrowing capacity depends on your income, existing debts, living expenses, and the deposit you've saved. Most lenders will calculate this using a servicing buffer above the current interest rate to confirm you can still afford repayments if rates rise. Getting pre-approval before you begin your property search gives you a firm borrowing limit and shows sellers you're ready to move quickly. Pre-approval typically lasts between three and six months, depending on the lender.

Consider a buyer earning $85,000 with no dependants and minimal debts. At current variable rates, they might be able to borrow around $450,000 to $480,000, depending on the lender's assessment. If they've saved a 10% deposit plus costs, they can look at properties up to around that range without needing to rely on a guarantor or low deposit options that attract lenders mortgage insurance.

Understand the Deposit You'll Need and Where It Can Come From

Most lenders prefer a genuine savings history showing you've held at least 5% of the property's value in your account for three months or more. Genuine savings can include regular deposits into a savings account, term deposits, or funds accumulated through the First Home Super Saver Scheme. If you're using the Australian Government 5% Deposit Scheme, you'll need to have saved at least 5% of the purchase price, and the scheme covers the gap between your deposit and 20%, removing the need for lenders mortgage insurance.

A gift from a parent or immediate family member can sometimes be used to top up your deposit, but most lenders will still want to see that you've saved a portion yourself. If you're buying in Brisbane and using a 5% deposit under the federal scheme, the property price cap from October 2025 is $1,000,000. Outside Brisbane, regional caps also increased from that date, giving buyers in areas like the Sunshine Coast or Gold Coast more room to move.

Check Which Grants and Concessions Apply to Your Purchase

Queensland offers a First Home Owner Grant of $15,000 for eligible contracts signed from 1 July 2026 on new homes valued under $750,000. The grant does not apply to established homes. If you're buying an established home, you can still access stamp duty concessions. For established properties, you'll pay nil transfer duty up to $700,000, with a concession applying up to $800,000. For new builds, a full transfer duty concession applies with no price cap on residential land from 1 May 2025.

These concessions can be combined with the Australian Government 5% Deposit Scheme, but they cannot be used alongside Help to Buy. If you're considering Help to Buy, the federal government contributes up to 30% of the purchase price for an existing home or up to 40% for a new home in exchange for an equity stake. That program has income limits of $100,000 for individuals and $160,000 for joint applicants.

Gather Your Documents Before You Apply

Lenders will ask for proof of income, savings, employment, and identification. For most buyers, that means payslips covering the last three months, recent tax returns if you're self-employed, and bank statements showing your deposit has been held for at least 90 days. You'll also need identification such as a driver's licence or passport, plus a rates notice or utility bill if you're currently renting.

If you're using funds from the First Home Super Saver Scheme, your lender will need confirmation of the released amount from the Australian Taxation Office. If part of your deposit is a gift, the lender will usually require a signed statutory declaration from the person providing it, confirming the funds are a genuine gift and not a loan that needs to be repaid.

Decide Whether You Want a Fixed or Variable Rate

A variable interest rate moves with the market, which means your repayments can go up or down depending on changes from the Reserve Bank and your lender's decisions. A fixed interest rate locks in your repayments for a set period, typically between one and five years. Some buyers split their loan, fixing part for certainty and leaving part variable to take advantage of features like an offset account or the flexibility to make extra repayments without restriction.

If you're borrowing close to your maximum capacity, a fixed rate can give you breathing room in your budget by removing the risk of rate rises during the fixed period. If you expect your income to increase or want the ability to pay down your loan faster without penalty, a variable loan or split structure might suit you better.

Know What Features Matter for Your Situation

An offset account is a transaction account linked to your home loan where the balance reduces the interest you're charged. If you have $20,000 sitting in an offset, you're only charged interest on the remaining loan balance. Offset accounts are typically available on variable loans but not on fixed loans. A redraw facility lets you access extra repayments you've made, but some lenders place limits on how often you can redraw or charge fees for doing so.

If you're planning to rent out a room to help cover repayments, or if you expect a tax return or bonus in the next year, an offset account gives you flexibility without locking funds away. If you prefer simplicity and want to set and forget your repayments, a loan without those features might come with a lower rate.

Choose the Right Time to Submit Your Application

Once you've found a property and your offer has been accepted, your broker or lender will lodge your formal home loan application. This is different from pre-approval because it includes the property valuation, contract of sale, and final income verification. The lender will order a valuation to confirm the property is worth what you're paying, and they'll review your financial position one more time to make sure nothing has changed since pre-approval.

If you've taken on new debt, changed jobs, or made a large purchase on credit between pre-approval and application, let your broker know before lodging. Those changes can affect your borrowing capacity and may delay settlement if they're discovered during the final assessment. Most applications take between five and ten business days to process, depending on the lender and whether any additional information is requested.

Plan for Settlement Costs on Top of Your Deposit

Your deposit covers part of the purchase price, but you'll also need to budget for settlement costs including conveyancing or solicitor fees, building and pest inspections, loan establishment fees, and any applicable stamp duty. Even with full stamp duty concessions, you should expect to pay between $3,000 and $6,000 in settlement costs depending on the property price and which services you use.

If you're buying in a regional area and eligible for stamp duty concessions, make sure your solicitor or conveyancer applies for the concession before settlement. In Queensland, your legal representative will usually lodge the transfer and concession application together, but it's worth confirming that step is included in their scope of work to avoid paying duty you didn't need to.

Getting your first home sorted comes down to knowing what you can afford, which support you qualify for, and making sure your application reflects your actual financial position. If you're ready to move forward or want to talk through which loan structure suits your situation, call one of our team or book an appointment at a time that works for you.

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