When to Apply & What to Prepare: First Home Buying Checklist

Buying your first home in the ACT means coordinating tasks that don't always happen in a straight line.

You'll be juggling deposit-saving, loan applications, property searches, and understanding what concessions you qualify for. The goal isn't to tick every box before you start. It's to know which tasks unlock the next step and which ones can wait.

When to Start Checking Your Borrowing Capacity

You should confirm how much you can borrow before you begin searching for properties in earnest. Borrowing capacity is shaped by your income, existing debts, living expenses, and the deposit you've saved. Lenders assess serviceability using a buffer above current interest rates, so what you can borrow today might differ from what you assumed six months ago.

Consider a buyer earning $85,000 annually with no dependents and minimal debts. After accounting for living expenses and the serviceability buffer, they might borrow around $450,000 to $500,000, depending on the lender and loan structure. That figure shapes the suburbs they focus on and the deposit amount they need. Without knowing this upfront, they risk falling in love with properties they can't finance or undershooting what they can actually afford.

Once you know your borrowing limit, you can match it to the deposit you've saved and determine your realistic price range. That makes every open home and online search more productive.

What Documents You'll Need When Applying for a Home Loan

Lenders want proof of income, savings, and identity before they'll issue pre-approval. The exact list varies slightly between lenders, but you'll generally need recent payslips, tax returns if you're self-employed, bank statements showing your savings history, and identification such as a driver's licence or passport.

If part of your deposit comes from family, lenders will ask for a signed gift letter confirming the funds don't need to be repaid. If you've been saving through the First Home Super Saver Scheme, you'll need a determination letter from the ATO showing how much you're eligible to withdraw. Lenders also want to see genuine savings, meaning funds you've held in your own account for at least three months, rather than a sudden lump sum transfer the week before you apply.

Having these documents ready before you submit your first home loan application speeds up the approval process and reduces the chance of delays when you're ready to make an offer.

Understanding ACT Stamp Duty Concessions and How They Apply

The ACT doesn't offer a cash grant for first home buyers, but it does provide stamp duty concessions that reduce upfront costs. Eligibility and thresholds are updated regularly by the ACT Revenue Office, so checking current rules before you commit to a purchase price is important.

Unlike some states that offer blanket exemptions, the ACT uses a sliding scale. The concession amount depends on the property value and whether you meet residency and occupancy requirements. You'll need to live in the property as your principal place of residence for at least 12 months. If you're buying with someone else, both of you need to meet the first home buyer definition.

In our experience, buyers sometimes assume they're eligible based on informal advice and don't confirm the details until after contracts are signed. That can lead to unexpected costs at settlement. Confirming your eligibility early, either through the revenue office or with a broker familiar with ACT concessions, removes that uncertainty.

Choosing Between Fixed and Variable Interest Rates

You'll need to decide whether to lock in a fixed interest rate, stay on a variable rate, or split your loan between the two. A fixed rate protects you from rate rises for a set period, usually one to five years, but you'll lose flexibility if you want to make extra repayments or refinance early. A variable rate moves with the market and usually comes with features like an offset account or unlimited extra repayments.

Some first home buyers prefer the certainty of knowing exactly what their repayments will be for the first few years. Others value the ability to pay down debt faster if their income increases. There's no universal answer, but the decision should reflect how you plan to manage the loan and whether you expect your financial situation to change.

If you're applying under the First Home Guarantee with a low deposit, ask whether the lender restricts certain rate types or charges higher fees for fixed loans with LMI waived. Not all products offer the same flexibility when you're borrowing at 95% of the property value.

How Low Deposit Options Work and When to Use Them

The expanded First Home Guarantee from October 2025 removed income caps and place limits, allowing eligible buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. That means you can enter the market sooner without needing to save a full 20% deposit, which in the ACT could mean the difference between buying now or waiting another two years.

In a scenario like this, a buyer with $30,000 saved could purchase a property at the ACT median, whereas previously they might have needed closer to $120,000 plus settlement costs to avoid LMI. The government guarantee covers the lender's risk on the portion of the loan above 80%, so you're not hit with an insurance premium that could add tens of thousands to your loan.

You can only use the scheme once, and you'll need to meet standard lending criteria including income verification and serviceability. If your deposit is coming partly from the First Home Super Saver Scheme, coordinate the withdrawal timing so the funds are in your account when the lender conducts their final checks before settlement.

What Happens During Pre-Approval and Why It Matters

Pre-approval gives you conditional approval to borrow a certain amount, subject to property valuation and final checks. It's not a guarantee, but it shows sellers and agents that you're a serious buyer with finance already assessed. In the ACT market, where some properties attract multiple offers, having pre-approval in place can make your offer more attractive and give you confidence to move quickly.

The approval is usually valid for three to six months, depending on the lender. During that window, your financial situation needs to remain stable. Taking on new debts, changing jobs, or making large unexplained withdrawals can affect your final approval. Lenders will verify your circumstances again just before settlement, so treat pre-approval as conditional, not final.

If your situation changes during the pre-approval period, such as a pay rise or a shift to a different employment contract, let your broker know. Sometimes those changes improve your position. Other times they require updated documentation.

What to Know About Offset Accounts and Redraw Facilities

An offset account is a transaction account linked to your home loan. The balance in the offset reduces the amount of interest you're charged without locking the funds away. If you have a $400,000 loan and $20,000 in your offset, you only pay interest on $380,000. You can still access the $20,000 whenever you need it.

A redraw facility lets you withdraw extra repayments you've made on your loan, but access isn't always instant and some lenders charge fees or set minimum redraw amounts. Offset accounts generally offer more flexibility, but they're usually only available on variable rate loans or the variable portion of a split loan.

For first home buyers who want to keep an emergency buffer or save for renovations while paying down their mortgage, an offset account is worth prioritising when comparing home loan options. Just confirm there's no monthly account fee that outweighs the interest saving if your offset balance will be low in the early years.

Planning for Settlement Costs Beyond Your Deposit

Your deposit isn't the only upfront cost. Settlement involves conveyancing or legal fees, building and pest inspections, and any adjustments for rates or strata fees already paid by the seller. You might also need to budget for removalists, insurance, and immediate repairs or improvements once you take ownership.

These costs can add several thousand dollars to what you need at settlement, depending on the property type and condition. If your savings are stretched thin after covering your deposit, factor these extras into your timeline. Running out of cash between contract and settlement creates unnecessary stress and sometimes forces buyers to delay moving in or borrow from family at the last minute.

If you're buying a house and land package, be aware that progress payments are often required at different construction stages, not just at final settlement. Your lender and broker can structure the loan to release funds progressively, but you'll need to coordinate timing with the builder and make sure your loan is set up correctly from the start.

Call one of our team or book an appointment at a time that works for you. We'll walk through your situation, confirm what you're eligible for, and help you put together a first home loan application that reflects where you are now and where you're heading.

Frequently Asked Questions