A home is the biggest financial investment most people make in their lifetime. This guide will help you to manage your financial and credit arrangements before and after borrowing to buy real estate. Looking after your financial health can save you money and personal stress.

Step 1:   Before you buy

Saving your deposit is the first step towards home ownership.  Examine your spending habits to prepare a budget plan and record your current income, expenses and the extra costs associated with buying a home.  The budget planner (MS Excel 67kb) provided will help you fully understand your finances and track your savings goals.  Before buying a home, it is also important to determine your needs and wants. With this knowledge, you can research the property market in your chosen area and work out exactly what you can afford.

Step 2:   Getting finance

Getting finance can be one of the most challenging aspects of buying a home.  This section gives information on choosing a loan, questions to ask when shopping around, the pros and cons of using a mortgage broker, loans to think twice about, and special home loan features to consider.

Step 3:   Selecting a home

It's a good idea to get an independent valuation before buying a home so you can plan how much to offer. Buyer's agents can help you to locate and negotiate the purchase of a property. This section also includes information for those considering buying a home sold at auction or off the plan.

Step 4:   Making an offer

This section includes information about making an offer, paying the deposit, your right to a cooling-off period and checks that must be carried out before settlement day if your offer is accepted, such as building and pest inspections and finding a solicitor.

Step 5:   The sale

There are many early responsibilities to consider in the lead up to settlement day.  You need to consider reviewing your home and contents insurance, moving costs, and utility connection fees.

Step 6:   Paying off your mortgage

There are several practical ways you can pay off your mortgage quicker without refinancing or setting up mortgage offsets. This section provides practical advice that may help if you are experiencing financial difficulties.

Last updated 20 March 2007.