The First Home Buyer Journey in Brisbane: A Step-by-Step Guide
Buying your first home is an exciting milestone, but it can also feel overwhelming. The home buying process involves numerous steps, from securing financing to negotiating contracts and making an offer. If you’re a first home buyer in Brisbane, here’s a guide to help you move through the process with confidence.
1. Understanding What You Can Afford
Before you start house hunting, it’s essential to know how much you can borrow. Getting pre-approval is an important step, as it gives you a clear idea of your budget and strengthens your position when making an offer.
Craig at QMP Financial, a Brisbane-based mortgage brokerage, highlights the importance of having your financial ducks in a row: “To secure your ideal property and build wealth, it's important to have smart borrowing in place.”
Speaking to a mortgage broker like QMP Financial can help you secure the right loan at the lowest rate, ensuring you don’t overextend yourself financially.
2. House Hunting & Researching the Market
Once you have pre-approval, you can start looking for properties that fit your budget and lifestyle. Consider factors like location, transport options, future infrastructure plans, and property demand in the area. Brisbane’s property market is dynamic, so researching recent sales and upcoming developments can give you an edge.
3. Making an Offer & Expression of Interest
When you find a property you love, the next step is submitting an Expression of Interest (EOI) or an offer. This typically involves outlining the amount you’re willing to pay for the property, the conditions of purchasing the property (including pest and building inspection conditions, settlement time frames, etc), and disclosing your proposed deposit amount. At this stage, it’s essential to engage a solicitor to review the contract before proceeding.
4. Reviewing the Contract & Due Diligence
Before signing the contract, carefully review the terms and conditions with your solicitor. Pay close attention to:
- Finance clause – allows time to secure final loan approval. It’s most common to allow 14 days for a finance clause.
- Building and pest clause – ensures there are no major structural issues. Most building and pest clauses are 7 days.
- Settlement period – the timeframe for completion of the sale. We find that most sales settle 30 days from the contract date. If any concerns arise, you may negotiate changes or even withdraw from the contract.
5. Building & Pest Inspection
A building and pest inspection is an important step that can reveal hidden issues with the property. Structural damage, termite activity, or water leaks could impact your decision. If significant problems are found, you can renegotiate the price or request repairs before settlement.
6. Finalising Your Loan Approval
If all checks come back clear, your lender will provide formal loan approval. This is when you can finalise your mortgage and prepare for settlement.
One common issue for first home buyers is when finance falls over at the last minute. This can happen if:
- There are changes to your employment or financial situation.
- The lender’s valuation of the property is lower than expected.
- Additional documentation is requested but not provided in time.
To avoid delays, ensure you stay in close communication with your broker and lender throughout the process.
7. Unconditional Contract
Once you have completed your pest and building inspection, had your financial approved, agreed to all (and any) special conditions, and you (and your solicitor) are satisfied, you’re ready to proceed with the purchase and “go unconditional”, you are obligated to purchase the property at this point, or incur penalties (like losing your deposit or being obligated to follow through with the purchase).
Remember, it’s essential that you stay in close communication with your broker before “going unconditional” to confirm your settlement date (which may involve checking that your lender can settled on this date) and that you are confident you are ready to commit to the purchase.
8. Settlement & Moving In
For some purchasers, you may elect to complete a pre-settlement inspection. This allows you to view the property (usually empty) one last time before settling the purchase.
On settlement day, your solicitor and lender will complete the transaction, and the property is officially yours! You’ll receive the keys and can start moving in.
Key Takeaways for First Home Buyers in Brisbane
- Speak with a mortgage broker or your bank to arrange pre-approval early to understand your budget.
- Do your research on Brisbane’s property market.
- Engage professionals, including a solicitor and building and pest inspector.
- Review contracts carefully and ensure you understand the terms of the contract.
- Be prepared for financial challenges and maintain a proactive relationship with your lender, solicitor and agent.
Purchasing your first home in Brisbane can be a complex process, but with proper planning and professional advice, you can confidently achieve your goal. Regardless of where you are in the buying journey, taking the necessary steps will bring you closer to owning your dream home.
Need help getting your finances in order? Give us a call now to get started.