How to buy a house
Buying a property is exciting, but the process can seem complicated. Here we’ll explain what you need to do, what expenses you’ll pay, and what to expect at each step.
Your deposit
How much deposit do
you need?
It’s possible to buy a property with
a deposit as little as 5% of the
property’s purchase price. However,
many buyers aim to save 20%.
Why a 20% deposit?
If your deposit is less than 20%,
your lender may require you to pay
Lenders’ Mortgage Insurance.
What impacts your
borrowing power?
How much deposit you have
Your income and expenses
Number of dependants
Your credit rating
First time buyer?
Find out if you qualify for a grant by
visiting www.firsthome.gov.au
What are the extra costs?
Don’t forget about the extra
costs such as stamp duty,
building inspections, legal
fees and possibly Lenders’
Mortgage Insurance.
Get pre-approved
for a home loan
Why get home loan
pre-approval?
Know what you can spend
Speeds up the buying process
It is not a binding contract
You can extend it for free
How can I get
pre-approved?
Tell us about your situation, needs and
preferences, and then we’ll find the
right loan for your unique scenario.
What will you need?
Bank statements from the
last 6 months
Recent PAYG statement
Your income and
employment history
Details of your expenses,
assets and liabilities
Securing
your property
When you've found
‘the one’...
1. You may have to pay an initial or
part deposit, usually 0.25% of
the purchase price, to the seller,
via the real estate agent.
2. There is a 5-day cooling-off
period. We'll help organise a
valuation and inspections at
this point.
3. Hire a solicitor or conveyancer
to act as your legal representative
throughout the process.
Buying at auction?
There is no cooling-off period.
You'll pay the deposit and exchange
contracts on auction day.
Notify us
Let your Home Loan Specialist
know of your intention to buy a
property.
Update your
pre-approval
Now it's getting real!
You'll need formal approval to buy
the property.
1. You might need to provide
more recent bank statements
or financial documents at
this point.
2. Your lender will check the
valuation to ensure the loan
amount corresponds to the value
of the property.
3. Your legal representative will
review your home loan contract.
Anything changed?
If your employment or financial
situation has changed since
pre-approval, let us know as
soon as you can.
Get approved
& pay deposit
Once your loan is
formally approved...
1. You will need to exchange
contracts and pay the deposit.
2. Once the deposit is paid, the
property cannot be sold to a
different buyer.
3. You can now provide us with
your signed contract of sale.
Don’t forget
Make sure your legal representative
checks the contracts before you
exchange and sign them.
Helpful hint
You can organise building
insurance now.
Settlement After settlement
What happens at the Your loan pack
final step? Once your home loan has settled
Your conveyancer will tell you your lender will send you a
confirmation of your loan,
where your funds need to be
outlining the details and your
at this point to complete the
repayment requirements.
purchase.
The home loan documents are
generated for you, the buyer,
to sign. When things change...
If your circumstances change,
Final costs are paid at
settlement. This means the our Home Loan Specialists are
always here to provide free
lender pays the seller on behalf
expert advice.
of the buyer and the buyer pays
additional costs such as stamp
duty and legal fees.
You get the keys!
Your legal representatives
instruct the real estate agent to
hand over the keys to you, the
new owner.
TALK TO AN EXPERT NOW
Get free expert advice by chatting to a
Home Loan Specialist today on
1300 525 454 or visit
www.domainloanfinder.com.au