First Home Buyer Roadmap

Buying your first home is easier to manage when you separate the process into a few clear decisions: what you can comfortably afford, what support you may qualify for, how to prepare for lender assessment, and what needs to happen between making an offer and settlement.

This guide is designed for first home buyers in Perth, across WA and elsewhere in Australia. Lender policy, government programs and purchase costs can change, so use this as a practical roadmap rather than a promise of approval or eligibility.

1. Start with borrowing capacity and affordability

Your borrowing capacity is the amount a lender may be prepared to lend after assessing your income, expenses, existing debts, credit position and other factors. It is not necessarily the same as the amount you would feel comfortable repaying each month.

A useful first step is to estimate your range with the borrowing capacity calculator, then compare that result with your real household budget. A mortgage broker can also help explain why different lenders may produce different results.

What can affect borrowing capacity?

• Income and employment type
• Living expenses and household commitments
• Credit cards, personal loans, car loans and other debts
• Deposit size and the source of the deposit
• Dependants and other regular commitments
• The lender's serviceability policy

For APRA-regulated banks, the minimum mortgage serviceability buffer is currently 3 percentage points above the loan interest rate. Lenders can also apply their own assessment rules and assumptions.

2. Work out the deposit and purchase costs

The deposit is only part of the cash you may need. Depending on the property and your circumstances, other costs can include transfer duty, conveyancing or settlement fees, building and pest inspections, lender fees and Lenders Mortgage Insurance where applicable.

Deposit requirements vary between lenders and loan structures. A smaller deposit may be possible, but it can change lender choice, pricing, costs and eligibility requirements.

For a more detailed explanation of first-home lending options, see First Home Buyer Loans.

3. Check current first home buyer support

Government programs can help some eligible buyers, but the rules change and should be checked before you rely on them.

In Western Australia, the First Home Owner Grant is currently a one-off payment of up to $10,000 for eligible buyers or builders of a new home. RevenueWA also applies current property-value caps and separate first-home duty rules. Eligibility depends on the transaction and applicant circumstances, so check the current RevenueWA guidance before making a purchase decision.

The Australian Government 5% Deposit Scheme may also allow eligible first home buyers to purchase with a smaller deposit without paying Lenders Mortgage Insurance, subject to the scheme rules and participating-lender credit assessment.

Useful support to check

• WA First Home Owner Grant and first-home duty rules
• Australian Government 5% Deposit Scheme
• Any shared-equity or other government programs that apply to your circumstances

4. Prepare for pre-approval

Home loan pre-approval can help you understand a realistic buying range before you make serious offers. It is conditional, not a guarantee of final approval.

The lender will usually assess your financial position and may ask for identification, income evidence, bank statements, details of debts and expenses, and information about your deposit. Requirements vary depending on the lender and whether you are employed, self-employed or have more complex income.

Read the home loan pre-approval guide for a deeper explanation of what lenders assess and what to prepare.

5. Compare lenders before choosing the loan

The lowest advertised rate is not automatically the best fit. Fees, offset or redraw features, fixed and variable options, lender policy and the way you intend to use the loan can all change the outcome.

The Compare Home Loan Lenders service explains the factors worth comparing before you commit.

6. Search for the property with the finance conditions in mind

Once you have a clearer range, you can focus on properties that fit both your budget and the lender's likely requirements. Property type, location, size, condition and valuation can all influence whether a particular lender will accept the property as security.

If you are buying at auction, get legal and finance advice before bidding. Auction conditions differ from private treaty sales and may offer less flexibility if finance is not ready.

7. Make an offer and complete due diligence

Your conveyancer or solicitor can advise on the contract and legal conditions. Building and pest inspections may also be appropriate depending on the property. The exact due-diligence process varies by state, contract and property type.

A finance clause can provide protection in some private treaty transactions, but legal advice should come from your conveyancer or solicitor rather than the lender or broker.

8. Move from pre-approval to formal approval

After a property is selected, the lender generally needs to assess the property and confirm that your circumstances still satisfy its credit criteria. A valuation may be required, and the lender may ask for updated documents before formal approval.

Pre-approval does not guarantee that the property or final application will be accepted. Avoid taking on new debts or making major financial changes during the process without understanding how they could affect the application.

9. Prepare for settlement

After formal approval, there can still be lender conditions, loan documents, insurance requirements and legal settlement work to complete. Your conveyancer or solicitor generally handles the legal property transfer, while the broker can help keep the lending side moving.

See Home Loan Settlement Support for what usually happens between approval and settlement.

What documents do first home buyers commonly need?

The exact list varies, but common requirements include:

• Identification
• Income and employment evidence
• Bank statements or transaction-history evidence
• Details of existing loans, credit cards and other liabilities
• Evidence of deposit or other funds to complete the purchase
• Property and contract information once a property is selected

Can a Perth mortgage broker help if you live elsewhere?

Yes. Much of the home loan process can be handled digitally. The Digital Brokerage is based in Perth and can assist borrowers across WA and Australia, subject to the services and lender options relevant to the application.

If you are ready to get organised, start with the borrowing capacity calculator or read about how to apply for a home loan online.