Everything You Need to Know About Your First Home Checklist

Buying your first home in Adelaide involves more than saving a deposit. You need to understand which government schemes apply to you, what documents lenders require, and how to structure your application to improve your borrowing capacity.

The checklist below covers what you need to prepare, not just what you need to know. Each step connects directly to a decision you will make during the purchase process.

What Deposit Do You Actually Need?

You can purchase with as little as a 5% deposit under the Australian Government 5% Deposit Scheme. The scheme applies to properties in Adelaide up to $950,000 and covers the gap between your deposit and 20% of the property value without requiring lenders mortgage insurance.

Consider a buyer purchasing at $600,000. With a 5% deposit of $30,000, the government guarantee covers the remaining 15%, which is $90,000. The buyer avoids paying LMI, which would otherwise cost between $15,000 and $20,000 depending on the lender. This allows more of the upfront cash to go toward settlement costs and purchasing expenses rather than insurance.

If you have a larger deposit saved, a 10% or 20% deposit may offer access to better loan features or interest rate discounts. Lenders typically reserve offset accounts and lower rates for borrowers with deposits above 10%. The right deposit size depends on your savings timeline and whether you want to preserve cash for post-settlement expenses.

South Australian Government Concessions and Grants

South Australia provides a $15,000 first home owner grant for new homes with no price cap. A full stamp duty concession applies to new homes and vacant land with no price cap. For established homes, stamp duty is fully waived up to $700,000 and partly waived up to $800,000.

A buyer purchasing an established home in Adelaide at $650,000 pays no transfer duty. A buyer purchasing at $750,000 pays duty only on the portion above $700,000, reducing the upfront cost by several thousand dollars compared to standard rates. These concessions apply when the property is your principal place of residence and you meet residency and prior ownership criteria.

You can combine state concessions with the Australian Government 5% Deposit Scheme. You cannot combine the 5% Deposit Scheme with Help to Buy, which is a separate federal program offering equity contributions. If you are building or buying new, the $15,000 grant and full duty exemption can reduce your upfront cost significantly.

Documents and Eligibility You Need to Prepare

Lenders require proof of income, savings history, identification, and employment status. For someone employed full-time, this means payslips covering the past three months, tax returns for the past two years, and bank statements showing three to six months of transactions. Self-employed applicants need two years of tax returns, notices of assessment, and recent business activity statements.

Your savings history matters. Lenders want to see genuine savings, which means funds you have saved over time rather than received as a one-off transfer. If you receive a cash gift from family, most lenders allow this to form part of your deposit, but they will require a signed declaration confirming the funds are a gift and not a loan. Some lenders cap the percentage of your deposit that can come from a gift, typically at 50% to 80% depending on the loan size and your borrowing capacity.

You also need to show you can service the loan. Lenders assess your income against your expenses and apply a buffer to the interest rate, usually 3%, to ensure you can afford repayments if rates rise. Reducing discretionary spending, consolidating debts, or increasing your deposit can all improve serviceability.

How Pre-Approval Changes Your Position

Pre-approval confirms how much you can borrow before you start looking at properties. It is conditional and subject to final property valuation and verification, but it gives you certainty when making an offer.

In a scenario where a buyer is looking at properties in the southern suburbs, pre-approval for $550,000 allows them to make an offer without worrying whether the lender will support the purchase. When a property in Christies Beach becomes available, they can move quickly. The lender has already assessed their income, deposit, and expenses, so the only remaining step is the property valuation. This reduces the risk of losing the property to another buyer during the finance approval period.

Pre-approval typically lasts three to six months depending on the lender. If your circumstances change during this period, such as a change in employment or an increase in debt, you need to update the lender before proceeding.

Fixed or Variable Interest Rates for Your First Home Loan

A fixed interest rate locks in your repayment for a set term, usually between one and five years. A variable interest rate moves with the market and allows full access to an offset account and unlimited additional repayments.

If you fix your rate, you gain certainty over repayments but lose flexibility. Most fixed loans restrict additional repayments to $10,000 to $30,000 per year and do not offer offset accounts. If you need to break the loan early, such as selling the property or refinancing, break costs can apply. These costs depend on the difference between your fixed rate and current market rates.

A variable rate gives you full flexibility to make extra repayments, redraw funds, and use an offset account to reduce interest. If rates fall, your repayments fall without needing to refinance. If rates rise, your repayments rise accordingly. Many first home buyers split their loan, fixing a portion for certainty and leaving the remainder variable for flexibility.

What Happens After You Apply

Once you submit your home loan application, the lender will verify your documents, assess the property, and confirm your eligibility. The property valuation determines whether the lender will support the purchase at the agreed price. If the valuation comes in below the purchase price, you may need to increase your deposit or renegotiate with the seller.

Settlement typically occurs four to eight weeks after the contract is signed. During this period, the lender finalises the loan, your conveyancer handles the legal transfer, and you arrange insurance and final inspections. You need to have your remaining deposit and settlement costs ready by the settlement date.

After settlement, your loan moves to the repayment phase. You will receive a loan statement showing your balance, repayment schedule, and account details. Setting up automatic repayments and monitoring your loan regularly helps you stay on track and take advantage of any opportunities to reduce the balance faster.

Buying your first home in Adelaide involves coordinating your deposit, government concessions, lender requirements, and loan structure. Each decision affects your upfront cost, borrowing capacity, and ongoing flexibility. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions