Buying a house checklist: every step from deposit to settlement

A buying a house checklist gives you one ordered list to work through, so a major purchase feels like a series of clear steps rather than one daunting leap. This buying a house checklist walks you from saving a deposit, through finance and inspections, to the day you collect the keys. Treat it as a home buying checklist you can return to at each stage, ticking off what is done and seeing what comes next. The goal is simple: fewer surprises, better decisions, and finance that fits your circumstances.

If you want the finance side sorted early, our home loans page sets out your options. The rest of this checklist for buying a house focuses on the steps in order.

How to use this buying a house checklist

The buying process tends to run in the same order for most people. According to Moneysmart, it moves through saving a deposit, working out what you can afford, finding a home loan, getting pre-approval, finding a property, negotiating, arranging a building and pest inspection, and then settlement. You do not need to do everything at once. Work through each stage, and use this home buying checklist to keep track of where you are.

Step 1: Save your deposit

Your deposit is usually the first big milestone. A common guideline is to save 20 per cent of the purchase price, plus enough to cover buying costs, which can help you avoid lenders mortgage insurance. This is because lenders mortgage insurance may apply when your loan-to-value ratio, or LVR, is above 80 per cent.

Lenders mortgage insurance, often shortened to LMI, is a one-off fee that protects the lender if you cannot repay the loan. It does not protect you or your guarantor. A larger deposit is not the only path, though. Some lenders may accept a deposit as little as 5 per cent, depending on your circumstances and lender criteria. A smaller deposit could mean paying LMI, so it helps to weigh the trade-off rather than assume one size fits all.

Checklist for this step:

• Set a deposit target based on the price range you are aiming at.
• Decide whether you are aiming for 20 per cent or considering a smaller deposit.
• Factor in buying costs on top of the deposit, not just the purchase price.

Step 2: Work out what you can afford to borrow

Before you fall for a property, work out what you can comfortably repay. According to Moneysmart, it is worth calculating what your repayments would be if interest rates went up by 2 per cent. This buffer is a sensible test, because rates can move over the life of a loan and you want repayments you could still manage.

This is where a calculator earns its place. Try the How much can you borrow calculator to get a realistic borrowing range, then sense-check it against your own budget. What a lender may offer and what feels comfortable to repay are not always the same number, and the gap is yours to decide.

Step 3: Choose the right home loan

Not all loans are alike, and small differences add up over time. A few terms are worth knowing before you compare.

• Comparison rate: a single figure showing the cost of the loan, including the interest rate and most fees. It helps you compare loans on a fairer basis than the headline rate alone.
• Fixed versus variable: a fixed interest rate stays the same for a set period, while a variable interest rate can go up or down as the lending market changes, for example when official cash rates change.
• Offset account: an account linked to your home loan that reduces the interest charged. For example, a 20,000 dollar offset on a 500,000 dollar loan means you pay interest on 480,000 dollars.

The right structure depends on your circumstances and lender criteria, so there is no single best loan for everyone. Comparing across lenders, rather than taking the first offer, gives you a clearer view of the cost.

Step 4: Get pre-approval

Pre-approval shows you are eligible to borrow up to a certain amount, and it typically lasts 3 to 6 months. It is not a guarantee of finance, but it sets a price range you can fund and signals to agents and sellers that you are a serious buyer. With pre-approval in hand, you can move quickly when the right property appears, rather than scrambling on finance at the last minute.

Step 5: Find a property and make an offer

Now the search begins. Separate your must-haves from your nice-to-haves, then inspect properties against the same criteria each time so you can compare them fairly. When you find one you want, you will either bid at auction or negotiate by private sale. Read the contract carefully, and get a solicitor or conveyancer to review it and handle the legal side of the purchase before you commit.

Step 6: Arrange a building and pest inspection

A building and pest inspection can be carried out during the cooling-off period to identify structural or pest issues before you are locked in. This is one of the most valuable steps in any checklist for buying a house, because it surfaces problems you cannot see on a casual walk-through. If you are buying at auction, the cooling-off period does not apply, so you may need to inspect before you bid.

Step 7: Settle and move in

Settlement is the day ownership transfers and you receive the keys. A few costs land around this point that are easy to forget:

• Stamp duty: a one-off state government property-transfer tax, usually payable within 30 days of settlement.
• Legal and conveyancing fees: for the solicitor or conveyancer who manages the transfer.
• Home and contents insurance: needed to protect the property, and many lenders require it from settlement.

Budgeting for these alongside your deposit means no nasty surprises in the final stretch.

A note on first home buyers

If this is your first property, there may be extra support and a few different steps worth knowing. Government schemes and concessions can change the deposit and cost picture, so it is worth checking what you may be eligible for early. Our guides on the First home buyer process australia and How to avoid lmi go deeper, and the Making an offer first home buyer covers the negotiation step in more detail.

Frequently asked questions

Talk it through with the team at Finance Lab

A checklist makes the path clear, but the finance is where personal circumstances matter most. The team at Finance Lab can talk through your deposit, borrowing power, and loan options, and help you work out what may suit your situation. Get in touch with the team at Finance Lab to take the next step with confidence.