Stage 01 of 5 · Three to twelve months, depending on the deposit
Getting ready
The months before you apply for anything, when your deposit, your spending record and your existing credit limits decide what will be possible later.
What gets decided here
- How much deposit are you actually aiming for?
The number that matters is the percentage of the property price, not the dollar figure. At 20% or more, lenders mortgage insurance drops out of the picture entirely. Below that it applies unless a government guarantee covers you, and the cost rises steeply as the percentage falls.
- What else has to be paid on top of the deposit?
Transfer duty, conveyancing, building and pest inspection, loan establishment or settlement fees, and moving costs. In most states the duty alone is the second-largest number in the transaction, and first-home concessions vary by state and by price.
- Are your credit limits doing quiet damage?
Lenders assess the limit on a credit card, not the balance you carry. An unused $15,000 card can reduce borrowing capacity by a meaningful amount. Buy-now-pay-later accounts also show up in statements and get counted.
- Do your bank statements tell the story you want?
Lenders read three to six months of transactions. Regular gambling, missed direct debits, undisclosed loans and last-minute large deposits without an explanation all create questions that slow an application down.
Before this stage ends
- Know your deposit as a percentage of your target price, not just as a dollar figure
- Add up the non-deposit costs for your state and subtract them from your savings
- Cancel or reduce credit cards you do not use, and keep evidence that you did
- Keep three to six months of clean, explainable transaction history
- Check whether you have ever owned Australian property — it decides scheme eligibility
Where people slip
- Saving hard into a joint account with someone who is not on the application, which complicates evidence of genuine savings.
- Applying for a car loan or a new card during the savings period, which is the single fastest way to reduce capacity.
- Assuming a deposit gift from family is straightforward. It usually needs a signed gift letter and evidence of the giver's funds.
Who sets the rules here
- Moneysmart — Saving for a home deposit (ASIC)
- Australian Taxation Office — First Home Super Saver Scheme
General information about how the Australian home buying and lending process works. Thresholds, concessions and scheme eligibility are set by federal, state and territory agencies and change; each page links to the agency that sets the rule. Reviewed 17 August 2026.