This is one of the most important questions you’ll ask yourself during this process. And it’s one you’ll need to answer honestly.

Joshua De Buelle, Finext Mortgage Brokers

The first step in estimating your borrowing capacity, is getting a clear picture of your current financial situation.

Download the toolkit to complete your expenses sheet.

Send me the Home Buyer Toolkit

What’s left over, along with what you currently pay in rent, is an estimate of how much you can afford to repay each month. As a rule of thumb mortgage experts recommend allocating one-third of your gross income (income before tax) to mortgage repayments.

Many financial institutions also have handy online calculators that will help you estimate how much you can borrow, try this one from Money Smart open_in_new.

Next, take an honest look at your finances.

• Are there any areas you could reduce spending to increase the amount available for repayments?
• Or perhaps before starting this journey, you need to pay off debt such as car loans or credit cards to free up your borrowing capacity?

Small sacrifices each week add up, and can get you into your new home considerably sooner than you thought possible.

When you’re planning your finances and working out what repayments you can afford, it’s important to ask yourself:

• Could we manage that repayment if my partner lost their job?
• What would the repayment be if the interest rates were to rise considerably?
• We’re looking at starting a family next year – will that repayment still be affordable?

In order to secure a home or block, you will need to have a deposit. This will be paid to the developer for the land, and builder for the home and is generally due when you sign your contract.

The amount of the deposit varies by developer and builder and by state, so be sure to ask those questions as part of your research. This amount will be deducted from the deposit required by the financial institution to secure your home loan.

To secure your mortgage, lenders will generally require between 5-20% of the value of the property, however this will depend on your individual circumstances and the lender.

If you are borrowing more than 80% of the value of the property your lender will require Lenders Mortgage Insurance (LMI). LMI provides the lender with peace of mind that should your property value fall, the insurance will cover the difference in value. The LMI cost is dependent on your lenders criteria and how they calculate LMI and your Loan to Value ratio (LVR).

Once you understand how much you'll need to save for a deposit, it's time to start planning. The first step is to set a savings goal. The more you can save, the larger the deposit you'll have and the more competitive interest rate you could receive.

Tracking your expenses is integral to achieving your savings goal. Although you might not like what you see, it’s important to understand exactly what you’re spending your money on each week.

Use our spending tracker to organise your living expenses and find areas you can cut back on.

Send me the Home Buyer Toolkit

Savings tips:

• Set a goal
• Track your spending
• Reduce your rent costs where possible (living with family, living in areas with lower rental prices)
• Automate savings to separate account
• Talk to your bank about savings accounts with higher interest rates and incentives

Once you have a clear and honest picture of your current financial situation, how much you will have available for a deposit, and how much you plan to save, it’s time to start talking to the experts.

Mortgage brokers will review your current financial situation and present you with options from a variety of lenders. A mortgage broker does not work for a bank; their job is to ensure they are providing you with the right product at the best rate for your circumstances.

If you’re building a new home, check whether your building company could help you with your finances. Many property construction companies have in-house finance teams who have vast experience in financing new home builds.

Your bank also has specialist mortgage experts. You can visit your bank and ask to speak to a first home loan specialist. If you’re working directly with your bank, they’ll more easily be able to access your account history and savings track record.

Download the toolkit for a checklist outlining everything you need to bring to your first mortgage expert meeting.

Send me the Home Buyer Toolkit

Financial institutions offer a variety of loan types based on your situation. Your mortgage expert will talk you through your options and together, you can decide what’s best for you.

Joshua De Buelle, Finext Mortgage Brokers

Here’s a selection of common loan types offered in Australia.

Being aware of all the fees and costs involved in purchasing a home or block at the beginning of the process allows you to budget for the total amount – which will be higher than just the purchase price of the property.

Joshua De Buelle, Finext Mortgage Brokers

Costs such as conveyancing fees, building inspections, lender fees, lender mortgage insurance and moving costs can all add up. Talk to your mortgage expert to make sure you have a clear picture of all of the additional costs involved.

Many service providers will be able to give you a quote upfront so you know exactly how much to expect.

Stamp duty

Stamp duty is a government tax on the transfer of land. Stamp duty rates vary between states and territories and you can save on stamp duty if you’re buying vacant land.

As we’ve discussed in ‘Am I eligible for any financial grants or incentives?’ most state governments also offer first home buyer stamp duty exemptions. Your mortgage expert will be able to discuss what stamp duty exemptions are available in your state.

This calculator open_in_new will give you an initial estimate - however be sure to check what the latest rules and exemption criteria are where you live.

The cost of selling your home

Selling your current home will free up equity and boost your borrowing power, however it’s important to understand that there are costs involved in selling a property that can add up.

• Agent commission fees
• Marketing your home
• Auctioneer fees
• Home staging
• Conveyancer/solicitor fees
• Lender fees
• Capital Gains Tax (CGT)

Congratulations! You’ve organised your finances, set a savings goal, researched your eligibility for assistance and understand all the costs involved. You’ve decided on a lender and now they have issued you with a pre-approval.

Joshua De Buelle, Finext Mortgage Brokers

When it comes to picking the perfect place to live, we’re spoilt for choice in Australia. From coastal locations giving you access to pristine beaches and stunning natural landscapes, to thriving urban communities bustling with cafes, dining, and community events – there’s definitely something for everyone.

Urban and city-fringe living

If you enjoy a connected lifestyle then urban living might be for you. Urban living offers a number of modern conveniences all nearby - including great shopping precincts, cafes, and cosmopolitan town centres. Spend your time dining out, catching up with friends or popping by your favourite bar for a quick drink after work.

communities to explore

Coastal living

A quick surf or run along the beach in the morning before work becomes possible when you live by the coast. Long walks along the beach and coastline are a great way to unwind, then enjoy breakfast by the beach or enjoy a meal as you watch the sunset.

communities to explore

Suburban neighbourhoods

If you once considered suburban living a little ‘quiet’ - think again. Suburban communities offer great schools, regional shopping centres with all the latest brands, outstanding dining and entertainment options and exceptional transport links to the CBD. The suburban life is also great if you want to be close to family who often live in established suburban communities.

communities to explore

Natural environments

Love the outdoors and adventure? Living near national parks and bike trails means less travel time, so you can do more rock climbing, see wildlife, go mountain biking, hike, and explore. Enjoy the serenity that nature reserves, waterways and green open spaces provide as you relax and spend time with your family in beautiful natural places.

communities to explore

Jolie McLaren, Peet Sales Representative

Things to consider

• Great schools in walkable distance
• Large shopping precincts
• Close proximity to work
• Well-designed playgrounds
• A great library
• Easy access to public transport
• Dining and takeaway options
• Close to a national park
• Vibrant nightlife and entertainment scene
• Quick access to the beach
• Safe and secure neighbourhood
• A fresh food market
• Near family and friends
• A strong sense of community

Having a clear picture of your budget will help you by immediately narrowing down the options. Peet’s sales teams and builders can assist in understanding what is available within your budget.

You can also visit real estate websites such as realestate.com.auopen_in_newand Domainopen_in_new to get an initial idea of house and land prices, or talk to a trusted builder.

The best way to understand what your ideal home looks like, is to think about how you and your family live your life.

• Do you want to reduce the amount of time you spend on home maintenance?
• Do you love entertaining your friends and family?
• Do you have children or are planning to start a family within the next two to five years?
• Do you have pets that require additional outdoor space?
• Do you work from home and need an extra room or space for an office?
• Do you often have family coming to stay with you?

Download the toolkit for a checklist with more for you to consider

Send me the Home Buyer Toolkit

Consider what your life will look like a few years from now.

Are you looking to start a family? You might need that extra bedroom after all.

Or is starting up a home business in your future plans? If so, picking a home that can be easily modified, changing a bedroom into a home office will be a good idea.

Legal professionals who specialise in preparation of your land or home transfer documentation are called Conveyancers or Settlement Agents. Many Solicitors also specialise in conveyancing as a part of their wider-service offering.

A Conveyancer’s responsibility is to ensure that the process of exchanging contracts, title transfers and settlement, meets all legal requirements in your state.

It is recommended that you appoint your conveyancer as early as possible as they can review your contracts and explain any special conditions that you need to be aware of.

What will a conveyancer do for me?

• Prepare necessary legal documents
• Help you understand legal documents prepared by the seller's Conveyancer
• Undertake property research, including planning and title searches
• Give you advice on when to schedule settlement day
• Ensure each step in the process is completed by the due date or request extensions on your behalf (missing deadlines through the conveyancing process can mean you incur penalty fees)
• Hold your deposit in a trust account and make payments on your behalf
• Calculate tax adjustments and rates
• Support you with the legal process of selling your current home, if you're not a first home buyer
• Reply to the seller on your behalf during any negotiation process
• Let you know when the property is settled
• Advise your lender on when payments will be made

A contract of sale ensures a sale of property meets all current legal requirements. The seller initiates this document; in some states a real estate agent can draw up a basic contract, which is then refined later by a Conveyancer. In other states, the vendor’s Conveyancer is required to draw up the contract from the start.

When you’re ready to make an offer on a house or block of land, you’ll need to include your offer amount, along with any conditions (e.g.: subject to finance) on the contract of sale. You should ask your Conveyancer to review the contract of sale before it’s presented to the seller.

When both you and the seller are happy with the conditions on the contract of sale and the purchase price, both parties will sign the contract of sale. We refer to this as the exchange of contract.

Immediately after the exchange of contract you have to part with your deposit. The deposit will be held in your Conveyancers trust account until the day of settlement – the seller cannot access the deposit until settlement day when the property changes from one owner to another.

You will also be asked to sign a transfer of land document which will be registered by the owner with the Land Titles Office so that on settlement day, the property can be transferred into your name.

What's included in a contract of sale?

The contract of sale outlines the terms and conditions of your property purchase including the price you are offering.

Most offers are either:

• Unconditional - usually when you have the cash available immediately or a property is going to auction, or
• Conditional - nominating specific conditions on which the sale relies, such as securing finance

In addition to the amount being offered, contracts of sale will include:

• Name of the seller's real estate agent
• Purchaser's name
• Seller's name
• Initial deposit and payment terms and conditions
• Full address of the property
• Exclusion from the sale
• Anything else included within the title
• Household fixtures, furnishings and chattels (ovens, blinds, dishwashers etc.)
• Cooling off period as specified by the state
• Intended property settlement date and period (between 30-90 days depending on the state) including penalty rates
• Date of offer
• Certificate of title information

Certificates of title are legal documents that identify the owner of the land. Local Governments hold a registry of all the land in their state. You will need a title to transfer land from one owner to the other. In some instances where land is newly divided, a title may not yet have been issued.

If you are purchasing land, check if the land is titled or untitled. This can affect your settlement date as you’ll need to wait until the land has been titled before the settlement can take place.

Jolie McLaren, Peet Sales Representative

• Plan your move: Do an audit of your furniture and the number of boxes you’ll need, then make sure you have a suitably sized truck or van organised for the big day.
• Get support: Enlisting the help of friends and family is also important – you may be surprised how much work is involved in moving into your new home.
• Consider pets and kids: If you have pets or younger children, it can be a good idea to have them looked after elsewhere for the day. You’ll be busy enough, and pets can get easily stressed when there is too much going on.
• Notify your landlord: If you are renting, give notice to your landlord or property manager and make sure you understand your obligations when you vacate the property, including required cleaning. Check out our article about ending a tenancy Closing the Door on Renting - 7 Things You'll Need to Do open_in_new.
• Update your information: You’ll also need to inform the various authorities and fill out change of address forms – remember; schools, Doctor, bank, lawyer, clubs, any ongoing orders (groceries, newspaper).
• Setup essential utilities: It’s important to have all of your utilities set-up at your new home too. Phone, internet, electricity, water, and gas.

Now you can really relax and enjoy turning your house, into a home. Remember, it’s ok to take your time with the finishing touches – it can be fun to have new projects to look forward to.

Window furnishings

If your new home didn’t come with blinds or curtains, you’ll want to organise those quickly.

While made-to-measure blinds and curtains are a better quality, longer lasting option - if your budget is really tight, there are plenty of ready-made blinds and curtains available in most department stores and large hardware/DIY stores. Have a list of your exact window measurements ready so you get the right sizes.

Soft furnishings

A great way to make your home feel cosy is with soft furnishings such as rugs, cushions, and throws. This is an ideal way to inject colour and personality into your home and really showcase your style.

Artwork and photos

Adding your favourite family photo or a treasured piece of artwork will immediately make a house feel like it’s your home. If you’re worried about your brand-new paintwork, you can use adhesive strips that can be removed without leaving any marks.

Landscaping

Creating a stunning garden is another way to personalise your house. As with other changes you may want to make, it’s a good idea to see where you catch the sunlight before you go ahead and plant your garden. You can move them around to see where they grow best before you take the plunge and plant them permanently.

Community creates a sense of belonging and connectivity. Reaching out and meeting people is one of the most effective ways of settling you and your family into a new area.

Meet your neighbours

Introduce yourself to your neighbours either side of your house or apartment, and even across the road. If you’ve built a brand-new house, chances are they’re itching to pop over and see the finished product inside!

Community events

Get involved in events within your local community to meet people around with like interests. At Peet, we run frequent community events to nurture connections that help our new residents feel at home – faster.

Facebook groups

Today, most communities have Facebook groups set up for people within the community to communicate easily. These pages can be a valuable source of information about community activities, events and even where to find the best coffee!

Parents groups and schools

Children are a great way of getting involved in a community and meeting lots of people. Check out the local play groups or volunteer to help at your child’s school. Having playdates at your home is a great way to help your children form new friendships.

Housewarming gathering

Host a get-together for the people you’ve met since you’ve moved in. It needn’t be expensive – people are generally more than happy to bring a plate to share and something to drink. It’s a great way to celebrate your arrival in the neighbourhood and to meet even more people.