Prepare financially before you start house hunting.
Work out what your household can safely sustain, how much cash the purchase will require, and what needs to be ready before you apply for finance — Australia-wide principles, with Victorian rules identified where they apply.
What should you know before house hunting?
Start with your actual financial position, not a lender's maximum.
Before working through the guides below, write down: take-home income including any variable components, essential and discretionary expenses, existing debts and available credit limits, current savings and where they came from, and known changes such as parental leave, reduced hours or a new recurring expense. This isn't submitted anywhere — it's the starting input for the safe-budget guide that follows.
A lender's borrowing assessment and your own safe household budget serve different purposes. Lenders apply credit policies and prudential serviceability tests; their maximum approval is not a recommendation to spend that amount.
How much cash do you need to buy a home?
Don't treat "deposit" as the complete cash requirement. Keep four amounts separate:
Deposit or equity contribution
What you contribute toward the property rather than borrow.
Buying & government costs
Duty where applicable, conveyancing, inspections, registration and loan fees.
Settlement & moving costs
Adjustments, insurance, removalists and connections.
Cash remaining after settlement
Money still available for a repair, income disruption or higher-than-expected cost.
Your deposit or equity contribution is covered in full at deposit, LVR and LMI; the full breakdown of buying and government costs is at complete buying costs. The contract deposit paid during the transaction and the deposit used to calculate your home-loan LVR are related but not always structured identically — see the deposit guide before deciding how much cash is actually available.
The eight-step framework
Each stage opens a complete guide, in order.
When should you pause and investigate further?
These are prompts for further investigation, not a pass-or-fail financial assessment. Resolve the gap before relying on a purchase range or pre-approval when:
- →The maximum a lender may approve has become your spending target.
- →Paying the deposit and buying costs would use nearly all available savings.
- →Duty, legal fees, inspections or ownership costs haven’t been estimated.
- →Your plan depends on government support that hasn’t been formally checked.
- →Income, employment, parental leave or household expenses are likely to change.
- →Your credit report hasn’t been checked.
- →You don’t understand what could change between pre-approval and formal loan approval.
Which rules are Australia-wide, and which depend on the state?
Home-loan structures, credit reporting, lender serviceability and federal support programmes generally operate Australia-wide. Land transfer duty, first-home owner grants, concessions, transaction rules and some fees depend on the state or territory.
Delora's detailed worked examples, calculators and dedicated programme guides are Victoria-first — but the buying costs, government support, ownership costs and deposit guides each include a national comparison (duty, first-home grants, land tax and cooling-off periods by state or territory). Buyers elsewhere should still confirm current detail with their own state or territory revenue office before relying on any figure.
Never rely on a scheme's name or headline benefit alone: eligibility, price limits, residency rules, participating lenders and interactions with other programmes can change — see government support for home buyers for current detail.
Worth reading before you apply
Not part of the core sequence, but worth reading before you apply for a loan.
Buying with a limited deposit: your options
Government schemes, guarantor arrangements, joint purchase, shared equity and rent-to-buy schemes compared, with a checklist for evaluating any offer.
Comparing home loans
A practical process for shortlisting and getting a personalised quote from multiple lenders.
Working with a mortgage broker
The best interests duty, how brokers are paid, and what to ask before you rely on one.
Credit reports and your home loan application
Your right to a free copy every 3 months, and why checking it early matters.
If your situation isn't the default case
The guides above assume a standard buyer. If that isn't you, start here.
Preparing financially as a self-employed buyer
Lenders typically want more evidence of a stable income when you work for yourself.
Preparing financially with casual or variable income
How lenders commonly treat irregular pay, and how to budget around it yourself.
Buying while on or planning parental leave
How a temporary income reduction affects borrowing capacity and application timing.
Buying a home with a partner
Joint applications, and the real legal difference between joint tenants and tenants in common.
Buying with family — guarantors and co-ownership
Two different structures, two very different sets of risks and obligations.
Preparing financially as a single parent
The government schemes with lower deposit minimums for eligible single parents and guardians.
How existing debt affects your borrowing capacity
Personal loans, car loans and credit limits all reduce what a lender will approve.
How a HELP/HECS debt affects your home loan
An outstanding study loan is treated as an existing debt in most serviceability assessments.
Credit cards and buy now, pay later before you apply
Both count as credit lenders assess — even ones you rarely use.
Buying property in Australia as a non-citizen
FIRB approval rules, the current ban on established dwellings, and what's still allowed.
Financing a home you're building
Construction loans are structured differently from a standard purchase loan.
Financing an off-the-plan purchase
Sunset clauses, deposit bonds and staged payments — what to check before you sign.
Bridging finance: buying before you've sold
A short-term, typically more expensive loan that carries real timing risk.
Loans, deposits and applications
Detail behind the framework — how lenders actually assess you, what documents you'll sign, and the mistakes that catch buyers out.
Build your financial snapshot before you start
The seven things to gather about your income, expenses, debts and savings before you can use any of the guides that follow.
How to save a house deposit faster
Practical saving strategies, and why applying for new credit while you save can work against you.
How lenders actually calculate what you can borrow
Income shading, the expense benchmark, and why credit card limits count more than balances.
Lenders Mortgage Insurance explained
What LMI actually costs you, upfront vs. capitalised, refunds, and the alternatives.
Genuine savings, gifts and guarantors as a deposit source
What counts as 'genuine savings', and how gifted funds and guarantor arrangements are assessed.
Why a bank's valuation can differ from your purchase price
Desktop, kerbside and full valuations, and what happens if the valuation comes in short.
The loan documents you'll sign after approval
The Key Facts Sheet, loan offer, mortgage document — what to actually check before you sign.
What happens when your fixed rate ends
The 'mortgage cliff', your options before it happens, and when to start planning.
Offset account vs. redraw facility
Two ways to reduce interest using extra funds — how they differ, and which suits which situation.
What to do if your home loan application is declined
Common reasons for decline, and why applying everywhere at once can make things worse.
How an investment loan differs from a home loan
Rate, repayment type, serviceability assessment and tax treatment — the real differences.
Family guarantee loans: how they actually work
The mechanics of a limited guarantee, how and when it's released, and the real risk to the guarantor.
Property and settlement scams to know before you buy
The 'man in the middle' email scam that redirects settlement funds — and how to protect yourself.
Checking a builder or developer before you sign
Registration checks, insurance certificates and deposit caps — all 8 states and territories compared.
Resilience, and help if you need it
Preparing for interest rate rises
A deeper look at stress-testing your specific loan against realistic rate scenarios.
Preparing for income interruption
Job loss, illness or reduced hours — building resilience before you need it.
Insurance you need as a homeowner
Building, contents and mortgage protection insurance — what each actually covers.
Building a maintenance buffer
Why ongoing repairs deserve their own line in your budget, not just a one-off allowance.
If you're already struggling to make repayments, free and independent help exists — this isn't part of the normal buying sequence, but it should always be easy to find.
If you're struggling to make repayments
Free help exists, and lenders have hardship obligations — what to do, and when.
How to complain about a lender, broker or insurer
A free, independent dispute resolution scheme exists for exactly this.
Free financial counselling
An independent, no-cost service — not the same as a financial adviser.
This hub is general education, not personal financial, credit or tax advice. Delora does not recommend a specific loan or lender, does not state that any individual qualifies for a government programme, and does not provide a personalised borrowing recommendation. Figures are drawn from Delora's knowledge graph of primary Australian sources — see each guide's sources and methodology section.