Avoid These 5 Timeline Mistakes When Buying Your First Home

Buying your first home runs in a set order, and getting the order right protects your deposit, your scheme eligibility and your negotiating position. Lenders assess income and employment type individually, and that will not save a timeline that is out of sequence.

This article walks through the stages in order, with the points where timing matters most.

When Should You Start Planning to Buy Your First Home?

Start planning at least several months before you view a single property, because the early steps shape every later choice. This is the stage for working out your first home buyer budget, checking your savings and looking at your borrowing capacity.

Use this time to check how much you can borrow with a calculator, and to talk to a broker about how lenders view your pharmacy income. If you have variable income such as penalty rates or locum shifts, lenders can treat each type differently. Our borrowing capacity page explains how this works.

The trade-off: waiting to save a bigger deposit can reduce the loan you need, but property prices and your rent keep moving while you wait.

Which Deposit and Scheme Should You Choose Before You Apply?

Choose your deposit pathway before you apply, because some schemes have rules about when you can apply and what you can buy. The Australian Government 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit. Housing Australia backs the lender for the part of the loan between the deposit and 20% of the property value, so no LMI is payable. That backing protects the lender, not you, and you still pay all loan costs and repayments. There are also price caps that depend on the suburb and postcode, so check the cap before you shop. Our 5% Deposit Scheme for pharmacists page has more detail.

Help to Buy is a separate shared equity scheme. The Government contributes between 5% and 30% of the price of an existing home, and up to 40% for a new home, in exchange for an equity share. It has income thresholds. For 1 July 2026 to 30 June 2027, the single applicant threshold is $103,000 and the joint threshold is $165,000, based on your latest Notice of Assessment. Depending on your income, you may sit above the single threshold, so check this early. The trade-off is that the Government shares in any rise or fall in value, and you may need to buy its share back later. See our Help to Buy scheme page.

The First Home Super Saver scheme is a third option. You can release up to $50,000 of eligible voluntary contributions, plus associated earnings, toward a first home. You must request a determination before ownership of any real property transfers to you, which generally follows settlement. You then need to enter a contract to buy or build within the ATO's time window (from 90 days before the release request to 12 months after it, unless the ATO allows longer) and notify the ATO. Released amounts are taxed, so speak with your accountant.

Why Does Pre-Approval Come Before You Start Inspecting Homes?

Pre-approval comes first because it tells you a realistic price range before you fall for a property. It is not a final loan approval, and the lender can still decline the loan if your circumstances or the property change.

If you plan to use Help to Buy, the order matters even more. Housing Australia says a buyer should not put down a deposit or bid at auction without conditional approval from a participating lender and Housing Australia. Its conditional approval letter reserves a place for up to 90 days. Our getting loan pre-approval page covers what lenders look at.

A Worked Example: From Pre-Approval to Contract

Consider a hospital pharmacist who has saved a deposit and wants to buy with a 5% deposit. In a scenario like this, she gets pre-approval first and learns her likely budget. She then checks the price cap for each suburb on her shortlist using Housing Australia's postcode tool, and drops one home that sits above the cap.

She finds an eligible home under the cap, and her lender confirms the home's assessed value is also under the cap. As an illustration, a loan of $600,000 at an example rate of 6.75% p.a. over 30 years has monthly repayments of about $3,891. Actual rates depend on your lender and deposit. She tests this against her budget before she makes an offer.

The outcome: she signs the contract knowing the loan is likely to be approved, the price is within the cap and no LMI applies under the scheme. The trade-off is that her search area narrowed to homes inside the caps.

How Long Do Contract, Finance and Settlement Take?

After you sign, the contract sets your settlement timeline, and your finance must be finalised within it. Your lender arranges a valuation and gives formal approval, and your conveyancer or solicitor handles the legal side. Under Help to Buy, a contract must allow at least 30 days between signing and settlement unless Housing Australia approves a shorter period. The lender must also have all documents at least 29 days before settlement.

If you are building, our house and land package loans page explains how staged payments work.

Building insurance must be arranged before settlement under Help to Buy. Stamp duty, legal fees and inspections are your costs, and the Government does not cover them. Check the concessions in your state with the relevant revenue office, because the rules, thresholds and grants differ across states and territories.

What Happens After Settlement?

After settlement you collect the keys, and some schemes set rules about moving in. Under the 5% Deposit Scheme you must move in within six months of settlement and keep living there while the backing is active. If you do not, the lender may require you to pay LMI. Under Help to Buy, you must move into an established home as soon as settlement occurs.

If you want to lower your repayments later, an offset account or a rate review can help. Our getting a lower interest rate page explains your options. An offset account can reduce interest, but some loans with offset accounts carry higher rates or fees.

Call one of our team or book an appointment at a time that works for you. We will help you set out your timeline, check which schemes you may be eligible for and line up your pre-approval before you start inspecting homes.

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