Most first home buyers start hunting for property the moment they think they can afford it. The smarter move is to sort your finance first, then hunt with a clear budget and pre-approval in hand.
Get Pre-Approval Before You Start Looking
Pre-approval tells you exactly what you can borrow and gives you a firm budget before you start inspecting homes. Without it, you're guessing what you can afford, which leads to falling for places outside your reach or missing opportunities because you're unsure if you qualify.
Consider a buyer who spent six weekends inspecting homes in the $700,000 to $800,000 range, only to discover during a home loan application that their borrowing capacity was closer to $650,000. They ended up back at square one, inspecting suburbs they'd already dismissed. Pre-approval removes that risk. It locks in your borrowing limit based on your income, expenses, and deposit, and it signals to agents and vendors that you're ready to move.
A conditional pre-approval is valid for three to six months depending on the lender, which gives you a realistic timeframe to hunt without rushing. If your situation changes during that period, your broker can update the assessment before you make an offer.
Work Out Your Total Budget, Not Just the Purchase Price
Your budget isn't just the property price. Settlement costs, lenders mortgage insurance if your deposit is under 20%, conveyancing, building and pest inspections, and moving expenses all add up.
If you're buying with a 5% deposit under the Australian Government 5% Deposit Scheme, you won't pay LMI, but you'll still need funds for the other costs. Stamp duty concessions vary by state. In New South Wales, you'll pay no transfer duty on properties up to $800,000. In Victoria, the full exemption applies up to $600,000. Queensland offers nil duty on established homes up to $700,000. Knowing what you'll actually pay at settlement helps you set a realistic property price limit.
In our experience, buyers who budget only for the deposit and forget about the other costs either scramble for extra funds at the last minute or pull out of contracts. Factor in at least a few thousand dollars beyond your deposit to cover everything else.
<h4 class = "my-2">Ready to get started?</h4>
<p class = "my-2">Book a chat with a Finance & Mortgage Broker at Coastline Lending Company today.</p>
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Focus on Suburbs You Can Afford, Not Suburbs You Prefer
You might want to live in the inner city, but if your budget doesn't stretch that far, you're wasting time inspecting homes you can't buy. Shift your focus to suburbs where median prices sit comfortably within your range.
Start by identifying three or four suburbs that fit your budget, then spend time in those areas before you inspect any properties. Walk around on a weekday evening and a Saturday morning. Check proximity to work, public transport, shops, and schools if that's relevant. Look at how many properties are listed and how long they sit on the market. A suburb with high turnover and longer listing periods gives you more negotiating room than one where homes sell within days.
Once you've narrowed it down, track recent sales in those suburbs so you know what properties are actually selling for, not just what they're listed at. This helps you spot when an asking price is inflated or when a property is genuinely underpriced.
Understand Property Price Caps for Government Schemes
If you're planning to use the Australian Government 5% Deposit Scheme, property price caps apply. Sydney's cap is $1,500,000. Melbourne's is $950,000. Brisbane sits at $1,000,000. Regional caps are lower and vary by location.
These caps shape your property hunt. In Melbourne, you can't use the scheme for a home priced at $960,000, even if you have a 5% deposit ready. You'd either need a larger deposit to avoid the scheme or look at properties under the cap. Knowing the caps before you start hunting saves you from inspecting homes you can't finance under the scheme.
If you're eligible for Help to Buy, different caps apply, and the scheme isn't available in Tasmania. Western Australia joined in early 2026, which opened up more options for buyers in that state. Check which schemes apply in your location and what the price limits are before you start attending inspections.
Inspect More Than Once and at Different Times
One inspection on a sunny Saturday afternoon won't tell you how noisy the street is on a weekday morning or whether the neighbours are an issue. If you're serious about a property, inspect it at least twice at different times.
Go back on a weekday evening when people are home from work. Check traffic noise, street parking availability, and how much natural light the home gets later in the day. If it's an apartment, visit during the day when other residents are around to get a sense of building noise and common area upkeep.
You're about to commit to a 25 or 30-year mortgage. An extra hour spent inspecting could save you from buying into a situation that frustrates you every single day.
Don't Skip Building and Pest Inspections
A building and pest inspection costs between $400 and $800 depending on the property size and location, and it's the only way to know if the home has structural issues, pest damage, or costly repairs waiting.
Some buyers skip the inspection to save money or because the property looks fine on the surface. Then they discover cracked footings, termite damage, or a roof that needs replacing within months of settling. Those repairs can run into tens of thousands of dollars, and if you've already stretched your budget to buy the home, you won't have the cash to fix them.
Make your offer subject to a satisfactory building and pest report. If issues come up, you can either negotiate a lower price, ask the vendor to fix them, or walk away. Without that condition, you're locked in regardless of what the inspection reveals.
Know the Difference Between Fixed and Variable Interest Rates
Your interest rate structure affects your repayments and your ability to make extra payments. A fixed interest rate locks your rate in for a set period, usually one to five years. Your repayments stay the same during that time, which makes budgeting easier. However, most fixed loans restrict extra repayments and charge break fees if you refinance or sell early.
A variable interest rate moves with the market. If rates drop, your repayments drop. If rates rise, so do your repayments. Variable loans usually offer features like an offset account or unlimited extra repayments, which help you pay off the loan faster.
Some buyers split their loan between fixed and variable to get some rate certainty while keeping flexibility. There's no universal answer, but understanding how each structure works means you can choose based on your actual situation rather than what sounds appealing.
Be Ready to Move Quickly When You Find the Right Property
Homes that are priced well and located in high-demand suburbs don't sit around waiting for buyers to make up their minds. If you've done your research, inspected the property more than once, reviewed the contract, and arranged a building inspection, you should be ready to make an offer within days.
Delaying because you want to see a few more properties or because you're hoping something might come up often means losing the home to another buyer who was prepared. This doesn't mean rushing into a purchase you're unsure about. It means doing the work upfront so that when the right property appears, you can act with confidence.
If you're buying at auction, make sure your finance is unconditional and your deposit funds are available. Auction purchases are binding on the day, so there's no cooling-off period and no subject-to-finance clause to protect you. Only bid if you're fully ready to settle.
Use Your Broker to Clarify Loan Features Before You Commit
Not all home loan options come with the same features. Some lenders offer offset accounts, others don't. Some allow unlimited extra repayments on variable loans, others cap them. Some charge monthly fees, others don't. These differences affect how your loan works over the long term.
Your broker can walk you through which lenders offer the features that matter to you and which ones to avoid. If you want the flexibility to make extra repayments without penalty, a variable loan with an offset account and no monthly cap is likely the right fit. If you prefer certainty and don't plan to pay extra, a fixed rate might suit you.
Asking these questions before you apply means you end up with a loan that actually works for how you manage money, rather than one that seemed fine on paper but frustrates you every month.
If you're ready to start hunting with a clear budget and the right finance structure in place, call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
Should I get pre-approval before I start looking at properties?
Yes. Pre-approval tells you exactly what you can borrow and gives you a firm budget before you start inspecting homes. Without it, you risk falling for properties outside your reach or missing opportunities because you're unsure if you qualify.
What costs do I need to budget for beyond the deposit?
You'll need to cover settlement costs, lenders mortgage insurance if your deposit is under 20%, conveyancing, building and pest inspections, and moving expenses. Factor in at least a few thousand dollars beyond your deposit to cover these costs.
How many times should I inspect a property before making an offer?
Inspect at least twice at different times. Go back on a weekday evening to check traffic noise, street parking, and how much natural light the home gets later in the day. This helps you avoid buying into a situation that frustrates you daily.
What are the property price caps for the Australian Government 5% Deposit Scheme?
Sydney's cap is $1,500,000, Melbourne's is $950,000, and Brisbane sits at $1,000,000. Regional caps are lower and vary by location. Knowing the caps before you start hunting saves you from inspecting homes you can't finance under the scheme.
Should I choose a fixed or variable interest rate?
A fixed rate locks your repayments for a set period but restricts extra repayments. A variable rate moves with the market and usually offers features like offset accounts and unlimited extra repayments. Some buyers split their loan to get both rate certainty and flexibility.
<h4 class = "my-2">Ready to get started?</h4>
<p class = "my-2">Book a chat with a Finance & Mortgage Broker at Coastline Lending Company today.</p>
<div class = "w-100 d-flex">
<a class = "btn article-btn my-2" href = "/book-appointment/">Book Appointment</a>
</div>
</div>Focus on Suburbs You Can Afford, Not Suburbs You Prefer
You might want to live in the inner city, but if your budget doesn't stretch that far, you're wasting time inspecting homes you can't buy. Shift your focus to suburbs where median prices sit comfortably within your range.
Start by identifying three or four suburbs that fit your budget, then spend time in those areas before you inspect any properties. Walk around on a weekday evening and a Saturday morning. Check proximity to work, public transport, shops, and schools if that's relevant. Look at how many properties are listed and how long they sit on the market. A suburb with high turnover and longer listing periods gives you more negotiating room than one where homes sell within days.
Once you've narrowed it down, track recent sales in those suburbs so you know what properties are actually selling for, not just what they're listed at. This helps you spot when an asking price is inflated or when a property is genuinely underpriced.
Understand Property Price Caps for Government Schemes
If you're planning to use the Australian Government 5% Deposit Scheme, property price caps apply. Sydney's cap is $1,500,000. Melbourne's is $950,000. Brisbane sits at $1,000,000. Regional caps are lower and vary by location.
These caps shape your property hunt. In Melbourne, you can't use the scheme for a home priced at $960,000, even if you have a 5% deposit ready. You'd either need a larger deposit to avoid the scheme or look at properties under the cap. Knowing the caps before you start hunting saves you from inspecting homes you can't finance under the scheme.
If you're eligible for Help to Buy, different caps apply, and the scheme isn't available in Tasmania. Western Australia joined in early 2026, which opened up more options for buyers in that state. Check which schemes apply in your location and what the price limits are before you start attending inspections.
Inspect More Than Once and at Different Times
One inspection on a sunny Saturday afternoon won't tell you how noisy the street is on a weekday morning or whether the neighbours are an issue. If you're serious about a property, inspect it at least twice at different times.
Go back on a weekday evening when people are home from work. Check traffic noise, street parking availability, and how much natural light the home gets later in the day. If it's an apartment, visit during the day when other residents are around to get a sense of building noise and common area upkeep.
You're about to commit to a 25 or 30-year mortgage. An extra hour spent inspecting could save you from buying into a situation that frustrates you every single day.
Don't Skip Building and Pest Inspections
A building and pest inspection costs between $400 and $800 depending on the property size and location, and it's the only way to know if the home has structural issues, pest damage, or costly repairs waiting.
Some buyers skip the inspection to save money or because the property looks fine on the surface. Then they discover cracked footings, termite damage, or a roof that needs replacing within months of settling. Those repairs can run into tens of thousands of dollars, and if you've already stretched your budget to buy the home, you won't have the cash to fix them.
Make your offer subject to a satisfactory building and pest report. If issues come up, you can either negotiate a lower price, ask the vendor to fix them, or walk away. Without that condition, you're locked in regardless of what the inspection reveals.
Know the Difference Between Fixed and Variable Interest Rates
Your interest rate structure affects your repayments and your ability to make extra payments. A fixed interest rate locks your rate in for a set period, usually one to five years. Your repayments stay the same during that time, which makes budgeting easier. However, most fixed loans restrict extra repayments and charge break fees if you refinance or sell early.
A variable interest rate moves with the market. If rates drop, your repayments drop. If rates rise, so do your repayments. Variable loans usually offer features like an offset account or unlimited extra repayments, which help you pay off the loan faster.
Some buyers split their loan between fixed and variable to get some rate certainty while keeping flexibility. There's no universal answer, but understanding how each structure works means you can choose based on your actual situation rather than what sounds appealing.
Be Ready to Move Quickly When You Find the Right Property
Homes that are priced well and located in high-demand suburbs don't sit around waiting for buyers to make up their minds. If you've done your research, inspected the property more than once, reviewed the contract, and arranged a building inspection, you should be ready to make an offer within days.
Delaying because you want to see a few more properties or because you're hoping something might come up often means losing the home to another buyer who was prepared. This doesn't mean rushing into a purchase you're unsure about. It means doing the work upfront so that when the right property appears, you can act with confidence.
If you're buying at auction, make sure your finance is unconditional and your deposit funds are available. Auction purchases are binding on the day, so there's no cooling-off period and no subject-to-finance clause to protect you. Only bid if you're fully ready to settle.
Use Your Broker to Clarify Loan Features Before You Commit
Not all home loan options come with the same features. Some lenders offer offset accounts, others don't. Some allow unlimited extra repayments on variable loans, others cap them. Some charge monthly fees, others don't. These differences affect how your loan works over the long term.
Your broker can walk you through which lenders offer the features that matter to you and which ones to avoid. If you want the flexibility to make extra repayments without penalty, a variable loan with an offset account and no monthly cap is likely the right fit. If you prefer certainty and don't plan to pay extra, a fixed rate might suit you.
Asking these questions before you apply means you end up with a loan that actually works for how you manage money, rather than one that seemed fine on paper but frustrates you every month.
If you're ready to start hunting with a clear budget and the right finance structure in place, call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
Should I get pre-approval before I start looking at properties?
Yes. Pre-approval tells you exactly what you can borrow and gives you a firm budget before you start inspecting homes. Without it, you risk falling for properties outside your reach or missing opportunities because you're unsure if you qualify.
What costs do I need to budget for beyond the deposit?
You'll need to cover settlement costs, lenders mortgage insurance if your deposit is under 20%, conveyancing, building and pest inspections, and moving expenses. Factor in at least a few thousand dollars beyond your deposit to cover these costs.
How many times should I inspect a property before making an offer?
Inspect at least twice at different times. Go back on a weekday evening to check traffic noise, street parking, and how much natural light the home gets later in the day. This helps you avoid buying into a situation that frustrates you daily.
What are the property price caps for the Australian Government 5% Deposit Scheme?
Sydney's cap is $1,500,000, Melbourne's is $950,000, and Brisbane sits at $1,000,000. Regional caps are lower and vary by location. Knowing the caps before you start hunting saves you from inspecting homes you can't finance under the scheme.
Should I choose a fixed or variable interest rate?
A fixed rate locks your repayments for a set period but restricts extra repayments. A variable rate moves with the market and usually offers features like offset accounts and unlimited extra repayments. Some buyers split their loan to get both rate certainty and flexibility.
