How long does it actually take to buy your first home
From starting to save to collecting keys, most first home buyers spend anywhere from six months to two years moving through the process. The timeline depends on how much you've already saved, whether you're using a government scheme, and how quickly you can lock down pre-approval. Buyers using the Australian Government 5% Deposit Scheme with some savings already in place can move faster than those building a deposit from scratch.
Consider a buyer in Brisbane who's been saving for eight months and has $50,000 set aside. They apply for pre-approval, find a property within three weeks, and settle six weeks after their offer is accepted. Total timeline from first broker meeting to settlement runs around four months. Another buyer in Perth starts with no deposit and spends 18 months saving through the First Home Super Saver Scheme before applying for a home loan. Their active search and purchase phase mirrors the Brisbane buyer, but the overall timeline stretches past two years because of the saving period.
The timeline isn't one straight line. It splits into distinct phases, and knowing what each one involves helps you move through faster and with fewer surprises.
Saving your deposit and understanding your options
Your deposit size determines which lenders you can access and whether you'll pay Lenders Mortgage Insurance. A 20% deposit avoids LMI entirely, but most first home buyers don't wait that long. A 10% deposit opens up most lenders without needing a government guarantee. A 5% deposit works if you're eligible for the Australian Government 5% Deposit Scheme, which removed income caps and annual place limits from October 2025.
The FHSS Scheme lets you salary sacrifice into super and pull out up to $50,000 toward your deposit. Contributions are taxed at 15% instead of your marginal rate, which speeds up saving if you're on a higher income. You need to apply to the ATO for a determination before you sign a contract, and that process takes a few weeks. Buyers using this option should factor in the lead time when planning their purchase.
Gift deposits are accepted by most lenders as long as the funds come from an immediate family member and you can provide a signed declaration. Some lenders want to see the gift in your account for at least three months before settlement, others are more flexible. If you're planning to use gifted funds, mention it early in your first home buyer conversation so your broker can match you to the right lender.
Getting pre-approval before you start looking
Pre-approval confirms how much you can borrow and locks in your borrowing capacity for three to six months depending on the lender. It doesn't guarantee final approval, but it gives you a firm number to work with and shows sellers you're ready to move. Most agents won't take an offer seriously without it.
A first home loan application for pre-approval requires payslips from the past three months, bank statements covering the same period, photo ID, and evidence of your deposit including any savings history the lender asks for. If you've received a gift, include the signed declaration and proof the funds have landed in your account. Lenders assess your income, expenses, existing debts, and credit file during this stage. They'll also check your deposit is genuine savings or falls within an accepted category like a gift or government scheme release.
Pre-approval usually takes between three and ten days if your documents are complete and your situation is straightforward. Delays happen when bank statements are missing, payslips don't cover a full three-month period, or the lender spots irregular deposits they want explained. Submit everything upfront and your broker can push the application through faster.
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Searching for a property and making an offer
Once pre-approval is in place, your search phase begins. Some buyers find a property in a week, others take six months. The time you spend here depends on how tight your criteria are, how competitive the local market is, and whether you're willing to compromise on location or property type.
When you're ready to make an offer, your agent or the seller's agent will prepare a contract of sale. In most states, you'll have a cooling-off period of a few days after signing if you're buying at a private sale. Auction purchases don't include a cooling-off period, so you need to complete all your checks beforehand. Your solicitor or conveyancer should review the contract before you sign, and a building and pest inspection should be booked as soon as your offer is accepted or before you bid if you're buying at auction.
Buyers using government schemes need to check their property falls within the relevant price cap. The Australian Government 5% Deposit Scheme caps vary by city. Sydney sits at $1,500,000, Melbourne at $950,000, and Brisbane at $1,000,000. If you're also claiming a state-based first home owner grant or stamp duty concession, make sure your property meets those eligibility rules too. A new home in South Australia qualifies for the $15,000 grant with no price cap, but an established home doesn't qualify at all.
Finalising your home loan and moving to settlement
After your offer is accepted, your pre-approval converts to full approval. Your broker submits the signed contract of sale and any updated documents the lender requests. The lender orders a property valuation to confirm the purchase price aligns with market value. If the valuation comes in under your offer price, the lender may reduce the loan amount and you'll need to make up the difference with additional deposit or renegotiate with the seller.
Full approval takes between five and fourteen days in most cases. Delays happen if the valuer is slow to inspect, if the lender queries something on your bank statements, or if you've changed jobs between pre-approval and contract exchange. Keep your financial situation stable during this period. Don't apply for credit cards, don't switch employers unless absolutely necessary, and don't make large unexplained deposits or withdrawals.
Settlement is usually four to six weeks after the contract is signed for an established home. For a new build or off-the-plan purchase, settlement happens when construction is complete and the property is titled, which can be months or even years after the contract is signed depending on the development timeline. Your conveyancer coordinates with the seller's legal representative, organises final checks, and arranges for funds to be transferred on settlement day. Once settlement completes, you collect keys and the property is yours.
First home buyer stamp duty concessions and how they affect timing
Stamp duty concessions don't change your timeline, but they do change how much cash you need at settlement. In Victoria, first home buyers pay no stamp duty on properties up to $600,000 and a reduced rate up to $750,000. In New South Wales, the exemption applies up to $800,000 with a concession extending to $1,000,000. Queensland offers no transfer duty on established homes up to $700,000 and a full concession on new builds with no price cap.
Your conveyancer applies the concession during settlement, and you'll see the saving reflected in your final settlement statement. You don't need to apply separately in most states, but you do need to meet the eligibility criteria, which usually include living in the property as your primary residence for at least 12 months. The Australian Capital Territory went further from July 2026, removing its property value cap and income threshold entirely. All eligible first home buyers now receive full stamp duty exemption regardless of purchase price or household income.
What slows the process down and how to avoid it
Incomplete documentation is the most common delay. Lenders need payslips, bank statements, tax returns if you're self-employed, and evidence of your deposit. Missing one payslip or submitting statements that don't cover the full period requested adds days or weeks while you track down the right paperwork. Gather everything before your first broker meeting and keep it updated as you move through the process.
Changes to your financial situation between pre-approval and settlement can derail your application. Taking on new debt, missing a credit card payment, or switching to a lower income all affect your borrowing capacity. Lenders re-assess your position before final approval, and if something material has changed, they may reduce your loan amount or decline the application outright. If your circumstances do change, tell your broker immediately so they can manage it with the lender rather than letting it surface during final checks.
Valuation shortfalls catch buyers off guard, particularly in suburbs where prices are moving quickly. If you offer at the top of the market and the valuer uses older sales as comparables, the lender may only approve a loan based on the lower valuation. You'll need to either increase your deposit to cover the gap or renegotiate the purchase price. Your borrowing capacity determines how much flexibility you have in these situations, so knowing your limit before you make an offer helps you avoid overcommitting.
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