How to buy a home in Australia: from first step to settlement
A clear, jargon-free walkthrough of every stage of the buying process: from sorting your deposit to holding the keys.
- From deposit to keys
- 6 stagesFrom deposit to keys
- Pre-approval turnaround
- 1–5 daysPre-approval turnaround
- Typical finance condition period
- 14–21 daysTypical finance condition period
- Typical settlement period
- 30–60 daysTypical settlement period
The 6-stage buying process
Every property purchase goes through these stages. Understanding what happens at each step removes the anxiety from the process.
Sort your finances
Understand your borrowing capacity, genuine savings, and upfront costs before you look at a single property.
- Calculate your borrowing power with a broker (not a bank calculator)
- Confirm your genuine savings position: how much is usable deposit
- Budget for stamp duty, legal fees, inspections, and moving costs
- Check your credit file for any errors or red flags
Get pre-approved
Pre-approval establishes your maximum budget and makes you a credible buyer in a competitive market.
- Your broker submits for pre-approval with the most suitable lender
- Pre-approval typically takes 1–5 business days
- Valid for 90 days (most lenders), can be extended
- Confirms your budget before you bid at auction or make offers
Find the right property
Search with clarity: you know your budget, your target suburbs, and your non-negotiables.
- Research target suburbs: price, growth, rental yield, infrastructure
- Attend opens and request Section 32/contract of sale before auction
- Order building and pest inspection before bidding (open for inspection first)
- Identify comparable sales to assess the property's true market value
Make your offer
Private treaty or auction: each has different rules. Understand the process before you commit.
- Private treaty: make a written offer, negotiate, include finance/B&P conditions
- Auction: unconditional bidding. Have pre-approval and B&P inspection done beforehand.
- If at auction, set a firm limit and don't exceed it in the room
- Review contract with your conveyancer before signing on private treaty
Satisfy conditions & go unconditional
The period between signing and going unconditional is where your broker does most of the work.
- Finance condition: your broker lodges full application, lender orders valuation
- Building and pest: review the report. Negotiate if issues are found.
- Notify the vendor of finance approval and condition satisfaction
- Once all conditions satisfied, contract is unconditional
Settlement
The final step: keys in hand, loan drawn down, ownership transferred.
- Your conveyancer handles settlement (electronic in QLD via PEXA)
- Final loan documents signed (typically 1–2 weeks before settlement)
- Do a pre-settlement inspection of the property
- Settlement day: funds transfer, title transfers, keys released
Upfront costs: what to budget for
Beyond the deposit, buying a home in Queensland involves several upfront costs. Most buyers underestimate these.
| Cost | Amount | Note |
|---|---|---|
| Deposit (minimum) | 5–20% of purchase price | 20% avoids LMI |
| Stamp duty (QLD) | $0 for FHB under $700k | Concessions for first home buyers |
| Stamp duty (investors) | $17,325 on $600k purchase | QLD transfer duty rates |
| Lenders mortgage insurance | $0–$25,000+ | Applies if LVR >80% |
| Conveyancing / legal fees | $1,200–$2,500 | Title searches, settlement |
| Building and pest inspection | $400–$700 | Strongly recommended |
| Loan application / settlement fees | $0–$600 | Varies by lender |
| Moving costs | $500–$3,000+ | Depending on distance and volume |
Stamp duty figures are approximate. Use our calculator for exact QLD stamp duty amounts based on your purchase price and buyer type.
First home buyers in Queensland
Queensland has some of the best first home buyer incentives in Australia. If this is your first property, you may qualify for substantial savings that significantly reduce your upfront costs.
$30,000 First Home Owner Grant
Available on new homes and new builds (house and land, townhouse, apartment) valued under $750,000. One of the most generous first home grants in the country. Applied at settlement.
No stamp duty under $700,000
Queensland first home buyers pay zero transfer duty on properties up to $700,000, a saving of up to $15,925. A concession applies up to $800,000.
First Home Guarantee (5% deposit, no LMI)
Federal scheme (35,000 places per year). Buy with 5% deposit without paying LMI. Price caps apply: $700,000 in Brisbane (2024). Income caps apply. Apply through your broker.
Regional First Home Buyer Guarantee
Same as the First Home Guarantee but for eligible regional areas, including parts of south-east Queensland. Higher income caps for couples.
First home buyer example (Springfield Central)
Indicative only. Individual circumstances vary. Consult your broker for exact figures.
Auction vs. private treaty: key differences
Private treaty
Negotiated sale with conditions
- You make an offer in writing: vendor can accept, reject, or counter
- Finance and building inspection conditions can be included
- 5-business-day cooling-off period applies
- Negotiation happens before you commit unconditionally
- More common for houses in Brisbane's outer suburbs
Auction
Unconditional on the fall of the hammer
- No finance condition: you must have unconditional pre-approval
- Get your building and pest inspection done before bidding
- No cooling-off period: immediate unconditional commitment
- 10% deposit payable on auction day
- More common in inner-city Brisbane and competitive markets
Buying a home FAQs
How much deposit do I need to buy a home in Queensland?
The minimum is 5% for most lenders, though you'll pay Lenders Mortgage Insurance (LMI) on anything below 20%. Genuine savings (held for 3+ months) are typically required. On top of the deposit, budget for stamp duty, legal fees, and inspection costs (typically 3–5% of the purchase price in Queensland). First home buyers under the $700,000 threshold pay no stamp duty, which significantly reduces upfront costs.
Should I get pre-approval before looking at properties?
Yes, always. Pre-approval (also called conditional approval or approval in principle) establishes your maximum budget before you start looking. It tells vendors and agents you're a serious buyer. Without pre-approval, you risk falling in love with a home you can't actually afford, or missing out in a competitive market because you can't act quickly. Pre-approval takes 1–5 days through a broker.
What is a cooling-off period in Queensland?
In Queensland, residential property contracts have a 5-business-day cooling-off period for private treaty (non-auction) sales. You can exit the contract during this period but forfeit 0.25% of the purchase price (e.g., $750 on a $300,000 property). The cooling-off period does not apply to auction purchases: once the hammer falls, you're unconditionally committed. This is why pre-approval before bidding at auction is non-negotiable.
What is 'unconditional' and when does it happen?
A contract becomes unconditional when all conditions have been satisfied: typically finance approval, building and pest inspection (if included), and any special conditions. Once unconditional, neither party can exit without penalty. This usually occurs 14–21 days after signing. Settlement follows 30–60 days later (the specific date is agreed in the contract). Between unconditional and settlement, your broker works to ensure formal approval is in place.
Do I need a conveyancer or solicitor?
You need a conveyancer or property solicitor for the legal side of the transaction: contract review, title searches, liaising with the other party's legal representative, and attending to settlement. In Queensland, PEXA (electronic settlements) is now standard. Costs are typically $1,200–$2,500 for a residential purchase. Your broker can recommend conveyancers they work with regularly.
What is a building and pest inspection?
A building and pest inspection is conducted by an accredited inspector who examines the property for structural defects, water damage, and pest activity (termites are common in Queensland). Cost: $400–$700. This is almost always included as a contract condition on private treaty sales. Always get one. A $500 inspection can save you tens of thousands by identifying issues that inform your negotiation or decision to walk away.
Ready to start your home buying journey?
Tom guides Brisbane buyers from first deposit to settlement. Free service: we're paid by the lender, not you. Start with a free pre-approval.