Buying Your First Home in Australia: What I Wish I Knew Beforehand

The Reality of Being a First Home Buyer in Australia

Looking back on my experience as a first home buyer in 2019, I realize how little I knew at the time. Like many first-time buyers, I was renting in Sydney and eager to get into the property market. My wife and I were keen to buy, so I asked a colleague where he thought a good place to buy would be. He suggested Glenmore Park, near Penrith—so we bought land there without fully considering the commute into the city every day.

That was my first big lesson: understanding the lifestyle impact of your property choice is just as important as affordability.

The Home Buying Process Has Changed

Back in 2019, buying land was much simpler than it is today. There was less competition, and property prices were significantly lower. We had the luxury of choosing between two blocks and purchased a 600-square-metre lot for just $140,000—unthinkable in today’s market!

However, I was completely unprepared for the process. I walked into a Westpac branch, took whatever loan they offered, and had no idea what options were available to me. I didn’t understand different loan features, interest rates, or how bank policies could impact my borrowing capacity.

Today, buying a first home is far more complex. With increasing demand, competitive auctions, and stricter lending criteria, navigating the process requires expert guidance.

The Challenges First Home Buyers Face Today

If you’re earning over $120,000 a year and looking to buy in Sydney, Melbourne, Canberra, or Brisbane, you’re facing challenges that didn’t exist a few years ago:

1. Competitive Property Market

  • Real estate agents have become more strategic in playing buyers against each other.
  • Auctions are more common, making it harder to secure a property at a fair price.
  • Limited land supply means more competition for quality homes.

2. Complex Lending Criteria

  • Each bank has different policies for assessing affordability and risk.
  • Postcode restrictions can limit lending options.
  • Employment type matters—banks assess full-time, part-time, freelance, and gig economy incomes differently.

3. Legal & Conveyancing Challenges

  • Contracts are more detailed, and ensuring legal protection is crucial.
  • Buying at auction requires a solid understanding of the terms before bidding.
  • Due diligence on properties is more important than ever to avoid costly mistakes.

The Importance of Having the Right Team

Given how much more difficult the home-buying process has become, trying to navigate it alone can be overwhelming. That’s why having a team of professionals on your side is crucial:

  • Buyer’s Agent: Helps find the right property, negotiates on your behalf, and saves time.
  • Mortgage Broker: Unlike banks, brokers compare loans across multiple lenders to find the best option for your situation.
  • Conveyancer/Solicitor: Ensures the legal side of the transaction is handled correctly and protects your interests.

Where to Start as a First Home Buyer

If you’re considering buying your first home, don’t make the same mistakes I did. Get professional advice and ensure you’re making informed decisions.

Speak to a Mortgage Broker First

Before speaking to a bank, consult a mortgage broker who can:

  • Compare loan options from multiple lenders.
  • Help you understand borrowing capacity and loan features.
  • Guide you through the pre-approval process.

Get Pre-Approved Before You House Hunt

Pre-approval gives you a clear budget and strengthens your position when making an offer, especially in competitive markets like Sydney and Melbourne.

Understand the True Costs of Buying a Home

Beyond the deposit, factor in costs like stamp duty, legal fees, inspections, and loan setup fees.

Ready to Buy Your First Home?

At Micah Finance, we specialize in helping first home buyers navigate the complexities of the Australian property market. Whether you’re exploring government grants, looking for low-deposit home loan options, or need guidance on affordability, we’re here to help.

📞 Contact us today for expert mortgage advice and take the first step toward homeownership!