Everything You Need to Know: First Home Buyer Checklist

Getting ready to buy your first home in Adelaide means preparing more than just your deposit.

You need to understand which grants and concessions apply to you, work out what deposit size suits your situation, and make sure your finances are in order before you apply. This checklist walks you through the practical steps that get you from thinking about buying to holding your keys.

Work Out What You Can Borrow Before You Start Looking

Your borrowing capacity determines which properties are within reach. Most lenders will assess your income, existing debts, living expenses, and any dependents to calculate how much they will lend. In Adelaide, this matters because the suburb you choose will influence both your purchase price and your ongoing costs.

Consider someone earning $85,000 a year with a car loan and typical living expenses. A lender might approve a loan amount that comfortably covers a unit in Salisbury or Davoren Park, but falls short for a house in Glenelg or Norwood. Knowing this figure early stops you from inspecting properties you cannot afford and helps you focus your search on areas where you can genuinely compete.

Getting pre-approval at this stage gives you clarity and shows sellers you are a committed buyer. Pre-approval also locks in a conditional loan amount for a set period, usually three to six months, giving you confidence to make an offer when the right property comes up.

Know Which South Australian Grants and Concessions Apply to You

South Australia offers a $15,000 first home owner grant for new homes with no property price cap for eligible contracts entered into on or after 6 June 2024. This applies to newly built houses, off-the-plan apartments, and house and land packages.

If you are buying an established home in Adelaide, you will not receive the grant, but you can still benefit from stamp duty concessions. South Australia provides a full transfer duty exemption on established homes valued up to $700,000, with a concession available for properties between $700,000 and $800,000. If you are buying a new home or vacant land to build on, the full transfer duty concession applies with no price cap.

In a scenario where you purchase a newly built townhouse for $550,000 in Elizabeth Vale, you would receive the $15,000 grant and pay no stamp duty. This combination reduces your upfront costs significantly and makes it easier to cover settlement expenses without eating into your deposit.

Decide on Your Deposit Size and Explore Low Deposit Options

The 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit, and Housing Australia guarantees the difference between your deposit and 20% of the property value. No income caps apply, and you avoid paying lenders mortgage insurance. This scheme is available through 31 participating lenders and applies to purchases across Adelaide.

A buyer purchasing a home for $600,000 would need a $30,000 deposit under the 5% Deposit Scheme. Without the scheme, you would typically need at least $120,000 to avoid lenders mortgage insurance, or accept the additional cost of LMI with a smaller deposit. The scheme opens up homeownership sooner without waiting years to save a larger amount.

If you are building or buying a house and land package, the scheme applies as long as the property meets the price cap. Adelaide properties are assessed under South Australia's cap, which currently allows for most suburban purchases within the metro area.

Gather Your Documents Before You Apply

Lenders need proof of your income, savings, employment, and identity before they assess your application. For most buyers, this means payslips covering the past three months, recent tax returns if you are self-employed, bank statements showing your savings history, and identification such as a driver's licence or passport.

Your savings need to show genuine savings, which means funds held in your account for at least three months. If you have received a gift from family, some lenders will accept this alongside your own savings, but they will want to see a signed declaration confirming the funds are a gift and not a loan. If you have accessed savings through the First Home Super Saver Scheme, make sure you have documentation showing the amount released and the date it was transferred.

In our experience, buyers who prepare their documents early avoid delays once they find a property. Having everything ready means your broker can submit your application within a day or two of signing a contract, which matters when settlement periods are tight or when a seller has multiple offers.

Choose Between Fixed and Variable Interest Rates

Your interest rate structure affects your repayments and your flexibility. A fixed interest rate locks in your rate for a set period, usually one to five years, which protects you from rate rises during that time. A variable interest rate moves with the market and often comes with features like an offset account or redraw facility.

Many Adelaide buyers split their loan, fixing part of it for stability and keeping part variable for flexibility. This approach gives you predictable repayments on the fixed portion and access to offset features on the variable portion, which can reduce the interest you pay if you keep savings in the offset account.

If you expect your income to increase or plan to make extra repayments, a variable rate or a split structure usually suits better than fixing the entire loan. Fixed rates typically restrict extra repayments and may charge break costs if you sell or refinance early.

Factor in Settlement Costs Beyond Your Deposit

Your deposit is not the only upfront cost. Settlement costs include conveyancing or legal fees, building and pest inspections, loan establishment fees, and valuations. In Adelaide, conveyancing fees for a standard residential purchase typically sit between $1,200 and $2,000, and building inspections range from $400 to $800 depending on the property type and location.

If you are using the 5% Deposit Scheme and avoiding lenders mortgage insurance, you will still need to budget for these settlement costs. Some buyers underestimate this amount and find themselves short at settlement, which can delay the transaction or require last-minute borrowing. Planning for an additional $5,000 to $8,000 on top of your deposit keeps you covered.

Understand How Ongoing Costs Affect Your Budget

Once you own the property, you pay council rates, water and sewerage charges, home and contents insurance, and strata fees if you buy a unit or townhouse. In Adelaide, annual council rates vary by suburb but typically range from $1,200 to $2,500 for a standard residential property. Strata fees in apartment complexes around the CBD or North Adelaide can range from $1,000 to $4,000 a year depending on the facilities and building size.

These costs affect how much you can comfortably repay each month. A buyer who stretches their budget to purchase a property without factoring in these expenses may struggle with repayments once rates and insurance are due. Including these figures in your initial budget gives you a more accurate picture of what you can afford.

Call one of our team or book an appointment at a time that works for you. We will walk through your situation, explain which schemes and concessions apply, and help you prepare an application that puts you in the strongest position when you are ready to buy.

Frequently Asked Questions