The Easiest Way to Plan Your First Home Timeline in SA

Getting the timing right can make the difference between securing your first home and missing out on thousands in grants and concessions.

South Australian first home buyers have access to a $15,000 First Home Owner Grant on new builds and full stamp duty relief with no price cap on new homes and vacant land. The Australian Government 5% Deposit Scheme lets you buy with just a 5% deposit and no lenders mortgage insurance. Each of these benefits depends on meeting specific conditions at specific points in the buying process. Knowing when to do what matters as much as knowing what to do.

Before You Start Looking: Get Your Numbers Clear

Your first step happens before you view a single property. Work out what you can borrow and what your deposit will cover. A borrowing capacity assessment considers your income, living expenses, existing debts, and the deposit you have saved. Most lenders will lend up to 80% of a property's value without requiring lenders mortgage insurance if you are not using a government scheme. Under the 5% Deposit Scheme, you can borrow up to 95% with Housing Australia guaranteeing the shortfall.

Consider a buyer earning $75,000 annually with $40,000 saved. Their borrowing capacity might sit around $450,000 to $480,000 depending on their expenses and existing commitments. With a 5% deposit, that places their purchase range at $800,000. With a 10% deposit, they are looking at properties around $400,000 to $450,000. The deposit size determines the property you can afford, so this calculation comes first.

Two to Three Months Before You Buy: Secure Pre-Approval

Pre-approval gives you a clear budget and shows sellers you are ready to proceed. It typically lasts three to six months depending on the lender. Apply once you have saved your deposit and sorted any credit issues. The lender will assess your income, verify your savings, check your credit file, and confirm how much they will lend.

Pre-approval does not lock in an interest rate, but it does confirm your borrowing capacity and speeds up the formal approval process once you find a property. In competitive markets, sellers often prefer buyers who already have finance arranged. It also prevents you from falling in love with a property outside your reach.

If you are planning to use the First Home Owner Grant in South Australia, make sure your broker knows at this stage. The grant applies only to new homes, so your property search will focus on house and land packages, newly built homes, or off-the-plan purchases. Established homes do not qualify for the grant but may still be eligible for stamp duty concessions depending on the purchase price.

At Contract Stage: Confirm Grant and Concession Eligibility

Once you have found a property and are ready to sign a contract, this is when your eligibility for grants and concessions is locked in. The South Australian $15,000 First Home Owner Grant is available for new homes with no price cap for contracts entered into from 6 June 2024 onward. You must not have previously owned or co-owned residential property in Australia, and you must move into the property within 12 months of settlement and live there for at least six continuous months.

Stamp duty concessions in South Australia provide full transfer duty relief on new homes and vacant land with no price cap. On established homes, you pay no duty up to $700,000 and receive a concession on properties between $700,000 and $800,000. These concessions apply at settlement, so your contract price determines your eligibility.

You cannot claim the First Home Owner Grant retrospectively. The application must be lodged before or at settlement. Your conveyancer or solicitor will usually handle this, but you need to provide proof of identity, evidence that you meet the residency requirement, and confirmation that you have never owned property before.

Four to Six Weeks Before Settlement: Finalise Your Home Loan

Your lender will conduct a formal valuation of the property and issue full loan approval. This stage involves providing final payslips, confirming your employment, and supplying updated bank statements. The lender will also check that the property valuation matches or exceeds the purchase price. If the valuation comes in lower than the contract price, you may need to renegotiate or increase your deposit to cover the shortfall.

This is also when your home loan structure is finalised. You will choose between a variable interest rate, a fixed interest rate, or a split loan. Variable rates move with the market and often come with offset accounts and redraw facilities. Fixed rates lock in your repayment for a set period, usually one to five years, and provide certainty but less flexibility. Most first home buyers benefit from keeping at least part of their loan variable to access an offset account, which reduces the interest charged by offsetting your savings balance against the loan.

Your lender will also confirm whether lenders mortgage insurance applies. Under the Australian Government 5% Deposit Scheme, no LMI is payable because Housing Australia guarantees the portion of the loan above 80%. Outside that scheme, borrowing more than 80% of the property value will usually trigger an LMI premium, which can add thousands to your upfront costs.

Settlement Day and the First 12 Months: Meet Your Obligations

Settlement is when ownership transfers and your loan funds are released to the seller. Your conveyancer will arrange the final paperwork, pay stamp duty if applicable, and register the title in your name. You receive the keys and become the legal owner. Your First Home Owner Grant is usually paid at settlement and applied directly to reduce the funds you need to bring to the table.

After settlement, the clock starts on your occupancy requirement. Most state grants and concessions require you to move in within 12 months and live in the property as your principal place of residence for a minimum period, typically six to 12 months. If you fail to meet this requirement, you may be required to repay the grant or concession in full. Keep records of your occupancy such as utility bills, updated driver's licence, and electoral roll enrolment.

In South Australia, you must occupy the property for at least six continuous months within the first 12 months of settlement to retain the First Home Owner Grant. If your circumstances change and you cannot meet this condition, contact RevenueSA immediately to discuss your options. Failing to notify them can result in penalties and interest charges on top of repaying the grant.

The timeline from first assessment to settlement typically runs three to six months for an established home and six to 12 months for a house and land package, depending on construction timeframes. Starting early, keeping your finances in order, and working with a broker who understands the grants and schemes available in South Australia will keep the process on schedule.

Call one of our team or book an appointment at a time that works for you. We will walk you through each stage, confirm your eligibility for grants and concessions, and make sure your finance is arranged before you sign anything.

Frequently Asked Questions