First Home Buyers Guide to Purchasing Your First Home

12 December 2025

By Grange Finance – Real guidance from brokers who have sat across the table from thousands of first-time buyers.

Buying your first home feels exciting…right up until the moment you see the paperwork. After working with first-home buyers for years, we have noticed the same things trip people up: rushing pre-approvals, underestimating hidden costs, choosing properties emotionally instead of financially, and trusting online calculators a little too much.

This guide cuts out the noise and gives you the real, practical steps to buying your first home in Australia — the same advice we would give a client sitting in front of us at Grange Finance.

Get Clear on What You Can Actually Afford

Most first-home buyers start by checking an online borrowing calculator. It’s a helpful tool but let me be brutally honest — it rarely reflects what the bank will lend you. Banks assess your expenses differently. They include things you don’t think about, like HECS debt, living costs, and even irregular spending patterns. I’ve seen buyers fall in love with a $700k property, only to find out the bank approves them for $610k because their spending history didn’t align with lending rules.

A quick chat with a broker gives you a far more accurate picture. We can run your numbers through several lenders and show you what’s realistic before you waste weekends at open homes.

Get a Proper, Fully Assessed Pre-Approval

There are two types of pre-approvals:

System-generated pre-approvals – look fancy, mean nothing, fall apart later.
Fully assessed pre-approvals – a credit officer checks your documents.

Always go with #2.

We have seen contracts collapse because a buyer relied on a system-generated approval, only to be declined during formal assessment. That usually costs them their dream home and sometimes their deposit.

With Grange Finance, you will get a fully verified pre-approval so you can bid confidently.

Understand Your Deposit and Genuine Savings Requirements

Most people underestimate how picky banks can be about savings. It’s not just about having a deposit – it’s about showing consistent financial behaviour. Banks like to see regular contributions over at least three months. Gifts can count, but only when they’ve been sitting in your account for a while.

Several times we have had to re-structure someone’s accounts because their money wasn’t classified as “genuine savings” would surprise you. When we work with you early, we help you position your savings in a way that satisfies lenders and strengthens your application.

Take Advantage of Government Grants and Schemes

Here’s where most first-home buyers leave money on the table.

Depending on your situation, you may qualify for:

First Homeowner Grant (FHOG)

Stamp Duty Concessions or Exemptions

First Home Guarantee (5% deposit, no LMI)

Family Home Guarantee (single parents, 2% deposit)

We have saved clients tens of thousands of dollars just by correctly structuring their purchase to fit these schemes – especially the First Home Guarantee, which can shave off $20–30k in LMI.

Always check these early – spots for the Guarantees fill fast.

Start Shortlisting Properties Like a Smart Buyer

Walking into a beautifully styled open home is dangerous for first-time buyers. I’ve watched people get emotionally attached to a place that made zero financial sense. A smart shortlist is based on suburb growth, price history, strata fees, building condition, and long-term value. Apartments, for example, can look affordable upfront, but hidden strata issues or special levies can burn through your savings quickly.

This is why due diligence matters. Get building and pest inspections. Review the strata report. Compare recent sales. Your future self will thank you for being practical now.

From making an Offer to Settlement

Real estate agents don’t just look at your offer amount — they look at how solid your finance is. A clean, confident offer backed by a strong pre-approval often beats a slightly higher offer with uncertain finance. I’ve personally spoken to agents to reassure them on a client’s behalf, and that alone has helped secure properties in competitive markets.

When agents see a prepared buyer, they treat you differently. It’s simple, but incredibly effective.

Final Approval & Settlement

Once your offer is accepted:

Valuation happens
Bank issues formal approval
Legal teams handle contracts
Settlement gets booked
The part nobody talks about?
Banks get slow. Really slow.
Especially near EOFY or when policies change.

This is why having a broker who chases the bank daily matters.

We have had situations where:

A bank lost some documents

Valuers delayed 5 days

Contracts needed urgent amendments

And we still got the deal settled because we pushed every step.

Avoid These Common First-Home Buyer Mistakes

After a decade of watching people buy homes, these are the big killers:

Co-signing with parents without understanding the risks

We’ve had families almost lose assets because the wrong structure was used.

Changing jobs right before approval

Banks hate instability — even if it’s a promotion.

Taking out a car loan during approval

This is the fastest way to blow up your borrowing capacity.

Not budgeting for post-purchase costs

Moving, appliances, rates, insurances — they add up.

Assuming the bank chooses the right product

Spoiler: they don’t. They choose the product that suits them.
Your broker chooses the one that suits you.

Why First-Home Buyers Choose Grange Finance

First-home buying is emotional. We get it.
Clients don’t just need a loan – they need someone who knows how to keep the entire process calm and controlled.

Working with Grange Finance means:

You get access to lenders with flexible policies

You avoid approvals falling over

You get real guidance, not automated emails

You have someone negotiating with banks on your behalf

You get a structure that protects your long-term financial health

Our job isn’t just to get you a loan.
It’s to make sure your first home is a stepping stone, not a financial trap.

Final Thoughts

Buying your first home isn’t easy – but it becomes manageable when someone experienced walks you through the logic, the paperwork, the timing, and the traps.

At Grange Finance, we have helped countless Australians secure their first home, even in tough lending conditions. If you want clarity, confidence, and a strategy that works in 2025’s lending market, we are here to help.