You have saved your deposit and want to buy a home, but you are not sure how the buying process works. Here is a short rundown of what to expect.
1. Get conditional loan approval
Before you start searching, find out how much you can borrow, so you know which properties are worth inspecting. Make an appointment with your bank to organise conditional loan approval (pre-approval). It pays to shop around for the best deal, and if you are not sure where to go, ask us and we can help.
2. Inspect properties
Once you know your borrowing capacity, start inspecting homes in your price range. If you don't know the area, research the suburb before inspection day so you know where the schools, sports grounds and shops are. Arrive a little early and drive around the neighbouring streets to get a feel for the suburb, then take your time inside and picture yourself living there.
3. Get the contract of sale
When you find a property you want to buy, ask the agent for a copy of the contract of sale. If you haven't already appointed a solicitor or conveyancer, now is the time. If you don't have one you are comfortable with, ask us for the names of local solicitors and conveyancers who can help.
4. Make an offer
An offer can be made verbally or in writing, depending on the agency's procedure, and goes to the agent running the negotiation. The agent passes it to the owner, who will accept it, reject it or make a counter offer. Once a price is agreed by both sides, you pay an initial deposit and sign the contract of sale.
5. Pay the deposit and sign contracts
The initial holding deposit is generally 0.25% of the agreed price. It is non-refundable if you decide not to go ahead, but once it is paid the property is held for you and cannot be shown or sold to anyone else.
You and the owner then sign the contract, and the agent exchanges contracts with a 5 or 10 working day cooling-off period (weekends and public holidays are not counted). During cooling off you can arrange inspections such as a pest and building report, and the bank valuation you may need for formal loan approval. Your solicitor or conveyancer can organise these and the documents your bank asks for.
6. Unconditional exchange
By 5pm on the last day of the cooling-off period, the rest of the 10% deposit must be paid to secure the property. All inspections should be complete and satisfactory by then, and you can go ahead with the purchase.
7. Settlement
After unconditional exchange the property is officially sold, and settlement usually follows about six weeks later unless another date was agreed. Before then your solicitor or conveyancer will arrange the bank transfers and documents you need to sign.
In the days before settlement, or on the day itself, do a final inspection with the agent to check the property is in the same condition as when you last saw it. Once settlement has gone through and we have the paperwork from your solicitor or conveyancer, you can collect your keys and move in.
Questions along the way? Call us on (02) 4621 4988.
Last updated 14 October 2026