A Step-by-Step Guide to Buying Your Dream Home in Australia

Introduction

The Australian property market can be intimidating—rising house prices, numerous regulations, and the complexity of securing a deposit can discourage even the keenest of buyers. However, with the right knowledge and strategies, buying your dream home in Australia can be far less daunting.

In this guide, we’ll walk you through every step of the Australian home-buying process, covering everything from determining your budget to finally picking up the keys. We’ll also introduce Coposit—an innovative way to secure your property from as little as $10k, helping you fast-track your journey to home ownership.

Flourish on Sixth Ave | QLD | Secure with $20k and $989 x 89 weeks

1. Determine Your Budget

Calculate What You Can Afford

Before jumping into property inspections, take a close look at your finances.

• Track your monthly income, expenses, and savings.
• Factor in unexpected costs like car repairs, health expenses, or holidays.

By having a clear picture of your income and essential outgoings, you can establish a realistic mortgage repayment you can manage comfortably.

Check Your Borrowing Power

Lenders determine how much you can borrow based on:

• Your credit score (history of on-time payments, overall debt level).
• Your current employment status and income stability.
• Existing financial commitments (e.g., car loans, credit cards).

If you’re unsure, talk to a mortgage broker or use online calculators that factor in your income and debts to estimate how much you can borrow. This figure guides you to properties within your price range and helps you avoid disappointment later.

Sophia Waters | NSW | Secure with $10k and $701 x 52 weeks

2. Save (or Structure) Your Deposit

Traditional Deposit Requirements

In Australia, many buyers aim for a deposit of 5–20% of the property’s purchase price. For instance, a $600,000 home typically requires $30,000 (5%) to $120,000 (20%) upfront. Reaching that amount can feel overwhelming—particularly when property prices keep climbing.

The Coposit Advantage

Enter Coposit, a game-changer for people struggling to meet a large deposit in one go.

• Secure a property from as little as $10k: Rather than saving the entire 5–20% upfront, you start with a minimum of $10k.
• Pay the remainder weekly: While your new home is being built, you’ll pay off the rest of the deposit through interest-free, fee-free weekly instalments.
• Lock in today’s price: As property prices continue to rise, locking in your future home’s price now could save you thousands down the track.

Coposit is especially helpful for first home buyers who have modest savings or those who prefer to keep extra funds in an offset account rather than tying them up in a bulk deposit.

Avra, Bondi Beach | NSW | Secure with $100k and $10,583 x 85 weeks

3. Research Government Grants & Concessions

First Home Owner Grant (FHOG)

If you’re purchasing your first home, you may qualify for a one-off grant from your state or territory. This First Home Owner Grant (FHOG) can boost your deposit or help cover additional costs, like stamp duty.

Stamp Duty Concessions

Stamp duty (also known as transfer duty) can add significantly to your home-buying bill. Depending on your state and property value, stamp duty could run into tens of thousands of dollars. However, some states offer reductions or exemptions for:

• First home buyers
• Off-the-plan purchases
• Regional buyers

Other Incentives

Keep an eye out for other schemes such as the First Home Loan Deposit Scheme (FHLDS), where eligible buyers can purchase a home with as little as 5% deposit without having to pay Lenders Mortgage Insurance (LMI).

Lovedale Farm | NSW | Secure with $10k and $1,082 x 111 weeks

4. Get Pre-Approval

What Is Pre-Approval?

Pre-approval is a statement from a lender indicating they’re willing to lend you a certain amount, pending final checks. While it’s not a guarantee, it shows you’re serious and clarifies your price range.

Documents You’ll Need

Recent payslips and proof of employment Bank statements (covering both everyday spending and savings) Valid photo identification (e.g., driver’s licence, passport) Evidence of any debts (credit cards, car loans) Having these documents ready speeds up the pre-approval process and gives you stronger negotiating power when you find a property you love.

Auburn Square, North Village | NSW | Secure with $10k and $320 x 133 weeks

5. Begin Your Property Search

Define Your Criteria

Identify what matters most to you, such as:

• Location: Proximity to public transport, schools, or family.
• Property Type: Apartment, house, townhouse, or villa.
• Features: Number of bedrooms, garage space, yard size.

Where to Look

• Online Portals: Sites like realestate.com.au and Domain let you filter by budget and suburb.
• Developer & Builder Websites: For new builds, display homes, and off-the-plan developments.
• Coposit Marketplace: To find off-the-plan properties that allow you to deposit just $10k upfront and pay the rest weekly.

Shortlist the most appealing properties, and prepare to inspect them in person (or virtually if off-the-plan).

Rhodes Bay | NSW | Secure with $10k and $563 x 137 weeks

6. Inspect and Compare Properties

Physical Inspections

If you’re buying an existing home:

• Check for any visible damage or renovations.
• Examine the floor plan for layout issues.
• Observe traffic and noise levels at different times of day.

Off-the-Plan Purchases

• Floor Plans & Finishes: Study floor plans and building specifications thoroughly.
• Developer’s Track Record: Look into the developer’s previous projects to ensure quality and reliability.
• Coposit Enquiry: If you’re using Coposit, speak with the developer to confirm minimum deposit and weekly payment details.

Professional Advice

• Building & Pest Inspection: Uncovers structural defects and hidden problems.
• Conveyancer or Solicitor: Reviews contracts to make sure there are no legal pitfalls.

ERA Newcastle | NSW | Secure with $20k and $413 x 137 weeks

7. Make an Offer or Bid at Auction

Private Treaty Sales

When buying privately, you negotiate a purchase price with the seller’s real estate agent. If your offer is accepted, you usually pay a deposit of up to 10%. With Coposit, you pay as little as $10k upfront if you’re buying an off-the-plan home, followed by your agreed weekly instalments.

Auctions

In markets like Sydney or Melbourne, auctions are very common. If you win, you’ll be required to pay a deposit (usually 10%) immediately. Remember, there’s no cooling-off period for auctions.

Argo | NSW | Secure with $10k and $868 x 68 weeks

8. Sign the Contract & Finalise Your Loan

Cooling-Off Period

In most Australian states, you have a short window after signing the contract to change your mind (the “cooling-off period”). Be aware that auctions generally do not offer this.

Unconditional Approval

Your lender will carry out a valuation of the property to confirm it’s worth the sale price. If everything checks out, they’ll issue unconditional approval for your loan.

Contract Check

• Legal Review: Have your conveyancer or solicitor review the contract terms, inclusions, and settlement date.
• Deposit Terms: Confirm how your deposit will be handled. With Coposit, the remaining deposit amount is paid via weekly instalments to a secure trust account.

East + Cowper, Granville| NSW | Secure with $10k and $444 x 98 weeks

9. Prepare for Settlement

Conveyancing

Your conveyancer or solicitor coordinates with the lender and the seller’s legal team to ensure a smooth transfer of ownership. They’ll also calculate any council rates or strata levies due at settlement.

Final Steps & Costs

• Insurance: Lenders usually require building insurance from the settlement date.
• Utilities: Organise electricity, gas, water, internet, and other services prior to moving in.
• Final Deposit (Coposit users): Continue your weekly payments until the deposit is fully paid by the time construction finishes.

Rouse Hill, Bathla | NSW | Secure with $10k and $348 x 46 weeks

10. Settlement Day & Moving In

Settlement

On the agreed date, the sale becomes official, and ownership is transferred to you. You’ll receive the keys if it’s a completed property. Off-the-plan buyers will settle once the construction is finished and any final checks (occupancy certificate) are complete.

Move In

• Plan your removalists in advance.
• Double-check that all utilities are in your name.
• Celebrate—you’ve officially become a homeowner!

Harbour Shores | The Waterline | QLD | Secure with $10k and $1,899 x 59 weeks

Final Thoughts

Buying a home in Australia can be a rewarding experience when approached step by step. Establishing a solid budget, exploring government incentives, and choosing a deposit strategy that suits your financial goals set you up for success. If you’re short on a full deposit, Coposit allows you to secure off-the-plan properties from just $10k upfront, making it easier to enter the market without years of saving for a lump sum.

Remember:

• Don’t rush—take time to research thoroughly.
• Seek expert advice from mortgage brokers, conveyancers, and inspectors.
• Stay flexible and open to creative deposit options like Coposit.

Here’s to finding your perfect Australian home and stepping confidently into the next chapter of your life!

Oran Park, Bathla | NSW | Secure with $10k and $593 x 76 weeks