A practical, no-fluff playbook for deciding if, when, and how to buy—plus exactly how to get finance approved, use grants/guarantees, and what to do if you’re knocked back.

How to use this guide

• Skim the Decisions sections first.
• Work through the Checklists in order.
• Use the Insider callouts for under-the-hood lending criteria that brokers/banks look for.

1) Decide When and Where to Buy

1.1 Timing (is now right for you?)

• Cash buffer rule: After deposit + costs, keep 3–6 months of living expenses in cash.
• Rent vs buy test (12-month horizon):
  • Annual cost of owning (interest + rates + insurance + strata + maintenance – tax benefits) vs your rent.
  • If owning is <10–15% more than rent and you’ll stay ≥3 years, buying is often reasonable.
• Income stability: 6+ months in role (or 2+ years in the same industry). Probation can be acceptable at some lenders but reduces options (see Insider).

Insider: Lenders apply a ~3% serviceability buffer above your actual rate to test repayments. If you only “just” pass your own budget, you may fail the lender’s model. handbook.apra.gov.au

1.2 Where (suburb strategy)

• Owner-occupier first approach: Choose areas with strong owner-occupier ratios, diverse employment, and essential infrastructure (schools, hospitals, transport).
• Micro-filters: Street noise, flood/fire overlays, orientation, build quality, strata health, and upcoming special levies.
• Growth vs yield: For first homes, prioritise livability and holding power over speculative growth.

2) Should You Use a Mortgage Broker—or Go Direct?

2.1 Quick decision