Buying your first home is a big deal—and in 2025, the process can feel more complex than ever. With rising property prices, shifting interest rates, and stricter lender policies, it’s easy to feel overwhelmed before you even start.

The good news? With the right plan and expert support, you can confidently navigate the journey to homeownership.

Whether you’re just starting to save or ready to make an offer, this First Home Buyer Checklist will guide you through every step of the process—and help you avoid costly mistakes along the way.

Step 1: Assess Your Financial Position

Before diving into the market, take a clear-eyed look at your finances:

  • Income: Consider your job security, income sources, and potential changes over the next 1–2 years.

  • Savings: Have you saved a deposit? Aim for at least 5–20% of the purchase price.

  • Debts: Reduce credit card limits and pay off personal loans if possible—these impact your borrowing power.

  • Living Expenses: Lenders now scrutinise your spending habits more than ever, especially in 2025. Track your spending over 3–6 months to get a clear picture.

Tip: Online calculators are helpful, but speaking with a mortgage broker will give you a realistic borrowing range tailored to your situation.

Step 2: Understand Your Borrowing Power

Your borrowing capacity depends on:

  • Income and employment type

  • Existing financial commitments

  • Credit history

  • Loan term and interest rates

  • The lender’s assessment criteria

Different lenders offer different borrowing amounts—so don’t rely on just one bank’s opinion. A broker can help you compare across the market.

Looking to buy in Sydney, Melbourne, or a regional hotspot? Understanding your price range early can refine your property search and avoid disappointment.

Step 3: Explore First Home Buyer Schemes (Updated for 2025)

As a first home buyer in Australia, you may be eligible for several government grants and schemes:

First Home Guarantee (FHBG)

  • Allows purchases with as little as 5% deposit

  • No Lenders Mortgage Insurance (LMI) required

  • Income limits apply: $125,000 for singles / $200,000 for couples (FY2024-25)

First Home Owner Grant (FHOG)

  • Available in some states for newly built homes or significant renovations

  • Grants vary by state (e.g., $10,000 in NSW and VIC)

Stamp Duty Concessions

  • Most states offer stamp duty exemptions or concessions for first home buyers under a certain threshold

  • In NSW (2025), stamp duty is waived on homes up to $800,000 and discounted up to $1 million

Super Saver Scheme (FHSS)

  • Allows voluntary super contributions (up to $50,000) to be withdrawn for a deposit

  • Tax-effective way to boost savings

Tip: A mortgage broker can confirm your eligibility and help you structure your application to maximise benefits.

Step 4: Get Pre-Approval

Also known as conditional approval, this step is crucial before making an offer.

Pre-approval confirms how much a lender is likely to lend you and shows agents and sellers that you’re serious. It’s generally valid for 90 days.

To apply, you’ll need:

  • ID documents

  • Payslips or income statements

  • Bank statements

  • Proof of savings

  • Details of existing debts or liabilities

Important: Pre-approval is not a guarantee of final approval. Avoid changing jobs, taking on new credit, or making large purchases during this stage.

Step 5: Start House Hunting

Now the fun part begins—looking for your first home!

Set your non-negotiables (e.g. location, number of bedrooms, proximity to transport) and remain flexible on things like decor or minor repairs.

Stay realistic and stick to your budget—even if it means compromising on features or suburb preferences.

Look out for hidden costs like strata fees, maintenance, and council rates, especially if buying an apartment.

Step 6: Make an Offer and Conduct Inspections

When you find the right property:

  • Make an offer through the real estate agent

  • If accepted, sign the Contract of Sale

  • Arrange for:

    • Building and pest inspection (for houses)

    • Strata report (for apartments or townhouses)

    • Legal review of contracts (through a conveyancer or solicitor)

Step 7: Final Loan Approval and Settlement

Once your offer is accepted, your broker will help you secure unconditional approval from the lender.

Settlement generally takes 4–6 weeks, during which:

  • You’ll sign loan documents

  • Your solicitor/conveyancer coordinates transfer of ownership

  • The lender releases funds on settlement day

Congratulations—you’re officially a homeowner!

Bonus: Don’t Forget the Extras

Budget for additional costs such as:

  • Stamp duty (if applicable)

  • Legal/conveyancing fees ($1,000–$2,500)

  • Building & contents insurance

  • Moving costs

  • Utility connections

  • Council & water rates

Final Thoughts

Buying your first home in 2025 is an exciting milestone—but the process can be stressful without the right guidance. With property prices and lending criteria shifting, it’s never been more important to have a trusted expert by your side.

At Micah Financial Solutions, we help first home buyers every day—breaking down the jargon, comparing loan options, and helping you build a strong foundation for your financial future.

Ready to take the first step?

Book a free consultation with a Micah broker. Whether you’re in the early stages or ready to buy, we’ll guide you through every step of the process—no pressure, just expert advice.

Micah Financial Solutions – Your Local Mortgage Broker in Epping and Carlingford