What this guide covers
This guide walks through the buying process itself, the decisions and steps between deciding to buy and getting the keys, whether it is your first purchase, an upgrade, or a subsequent home. If this is specifically your first home, the First Home Buyer Guide covers the deposit schemes, grants, and concessions that apply only to first-time buyers in much more depth than this guide does.
The buying process, start to finish
Every purchase follows roughly the same sequence, even though the timing at each stage varies by property and by state.
- 1Work out your budget. Combine your deposit with your borrowing power to set a realistic maximum purchase price, before you start looking seriously.
- 2Get pre-approval. A lender confirms in principle how much they will lend you, subject to final checks on the specific property. Valid for around 3-6 months.
- 3Search and inspect. Attend open homes, compare suburbs and property types against your budget and priorities.
- 4Arrange a building and pest inspection on any property you are seriously considering, before you make an unconditional offer or bid at auction.
- 5Make an offer or bid at auction. How this works differs meaningfully between the two, see the comparison below.
- 6Exchange contracts. Your conveyancer reviews the contract of sale. A cooling-off period may apply, rules vary by state and by whether the sale was by auction.
- 7Finalise finance. Your lender completes formal loan approval and a property valuation.
- 8Settlement. Funds transfer, title changes hands, and you receive the keys. Typically 30-90 days after exchange.
Check what you can afford before you start looking
Model your likely repayment at different loan amounts and rates before you set a budget.
Open Mortgage CalculatorAuction vs private treaty
Properties in Australia are sold one of two ways, and the process changes significantly depending on which applies to a property you are considering.
| Auction | Private treaty | |
|---|---|---|
| Offer terms | Unconditional, binding on the fall of the hammer | Can be conditional (subject to finance, inspection) |
| Cooling-off | Generally none once the hammer falls | Often applies, varies by state |
| Inspection timing | Must happen before bidding | Can be a condition of the offer |
| Price transparency | Public, price set by bidding on the day | Negotiated privately, less visible |
Because an auction purchase is unconditional, pre-approval and a building inspection need to happen before auction day, not after. Turning up to bid without either is a common and expensive mistake.
Established homes vs new and off-the-plan
An established home is one that already exists, you can walk through it, have it inspected, and know exactly what you are buying. A new or off-the-plan purchase is contracted before or during construction, based on plans and display suites rather than the finished product.
Off-the-plan purchases sometimes carry stamp duty concessions (rules vary by state, see the first home buyer guide for first-home-specific concessions) and offer new fixtures and lower initial maintenance. The trade-offs are construction risk (delays, changes between plan and final build) and settlement risk, since the purchase price is fixed at contract but settlement can be years away, during which the market or your finance position may change. Established homes remove that uncertainty but come with the maintenance profile of an existing building, which is exactly what a building and pest inspection is for.
Should you buy at all right now?
Buying is not automatically better than renting, it depends on how long you plan to stay, local price-to-rent ratios, and what else you would do with the money tied up in a deposit. The rent vs buy guide walks through the full comparison, and the Rent vs Buy Calculator models it against your own numbers. If you are still renting while you save, the Rent Affordability Calculator helps keep your current rent sustainable alongside a savings plan, and the rental stress guide explains when rent is genuinely stretching your budget versus just feeling that way.
What you will actually pay, beyond the price
The purchase price is the headline number, but stamp duty, conveyancing, inspections and loan fees add materially on top, budget roughly 4-6% of the purchase price beyond your deposit. Use the Stamp Duty Calculator for the exact state-based figure, or the stamp duty reference sheet for a quick summary of each state's first home buyer thresholds. The first home buyer guide (also summarised in the first home buyer reference sheet) has a full line-by-line breakdown of every upfront cost, useful regardless of whether it is your first purchase.
Choosing a loan structure
Fixed vs variable, offset accounts, and loan terms all affect what you actually pay over the life of the loan, not just the headline rate. The home loan basics guide covers how repayments split between principal and interest, and the offset vs redraw comparison covers where to keep your savings once you have a mortgage.
Common mistakes
Bidding at auction without pre-approval
A winning bid at auction is an unconditional, binding contract. Bidding without confirmed finance risks being unable to settle, which can mean losing the deposit and being liable for the difference if the property later resells for less.
Making decisions on inspection-day emotion
A well-presented property at an open home is designed to create urgency. Comparing against your written budget and priority list, decided before you started inspecting, helps counter the pressure to stretch beyond what you had planned.
Skipping legal review of the contract
Special conditions, inclusions and exclusions, and easements can all materially affect a property's value or suitability. A conveyancer reviewing the contract before you sign, or before you bid at auction, is not optional.
Underestimating the settlement timeline
Between exchange and settlement, finance still needs to finalise, insurance needs to be in place, and moving needs to be organised. Assuming settlement will happen on the earliest possible date can leave little room if anything is delayed.
Frequently asked questions
How long does buying a home actually take, start to finish?
Deciding to buy, researching, and getting pre-approval can take a few weeks to a few months. Once you find a property, exchange to settlement is typically 30-90 days depending on the state and what is negotiated. A realistic total timeline from starting the search to getting the keys is 3-6 months, longer in a competitive market or if finance takes time to arrange.
Should I buy at auction or wait for a private treaty listing?
Both sell the same properties, the difference is process. Auctions are unconditional on the fall of the hammer, which means finance and inspections must be sorted beforehand. Private treaty allows conditional offers (subject to finance, subject to building inspection), giving more room to negotiate and more protection if something is found late. Neither is inherently better, it depends on how the specific property is being sold and how prepared you are.
Is it better to buy an established home or off-the-plan?
Established homes let you inspect the actual property, negotiate on a known asset, and move in sooner. Off-the-plan or new builds can come with stamp duty concessions in some states and modern finishes, but you're buying based on plans, construction can be delayed, and the final result can differ from what was marketed. Off-the-plan also carries settlement risk if the market moves before construction completes.
Do I need a buyer's agent?
It's optional. A buyer's agent searches, shortlists, and negotiates on your behalf for a fee (flat fee or a percentage of the purchase price), which can be valuable if you have limited time, are buying in an unfamiliar area, or want to bid at auction on your behalf. Many buyers manage the search themselves and only engage a conveyancer for the legal side, which is not optional.
What if the building inspection finds a problem after I have made an offer?
This depends entirely on how your offer was structured. An offer made subject to a satisfactory building and pest inspection lets you renegotiate or withdraw if a serious issue is found, before you are legally committed. An unconditional offer, which is what an auction purchase becomes at the fall of the hammer, does not offer this protection, which is exactly why inspections should happen before an auction, not after.
Official sources
- ASIC MoneySmart - buying a home, from budget to settlement
- firsthomebuyers.gov.au - Australian Government first home buyer schemes
Plan the numbers before you commit
Use the Mortgage Repayment Calculator and Stamp Duty Calculator together to see your full upfront and ongoing costs before you make an offer.