Taking the leap from being a renter to becoming a homeowner is a significant decision. It involves planning and careful consideration.

Here’s a guide to help you make the transition.

Research market conditions

When you're unsure about where to start, remember that knowledge is power.

Researching the real estate market, especially in your desired locations, equips you with valuable insights into property values, trends and potential growth. This information can empower you to decide where and what to buy.

Want an even deeper understanding of what it's like to live in your desired area? If timing and budget align, consider renting a property in the suburb. Get acquainted with local shops, schools, transport and recreation to experience all aspects of the location's lifestyle.

Organise your finances

It’s a good idea to write down your income, expenses, debts and savings to understand your financial situation. 

Create a budget to understand how much mortgage and related homeowner expenses you can afford. Use a borrowing power calculator  to get a sense of how much you can borrow and what properties are in your price range.

Reconsider house sharing

Sharing a house isn’t always easy. After all, nobody wants to argue about who left the dirty pot in the sink or who ate your expensive cheese.

But if you need to boost your savings, house sharing could help you achieve your goals faster compared to renting on your own. Have a friend saving for the same goal? Why not share the same house?

Consider requesting a month-to-month rental agreement 

If your lease is ending and you’re thinking about buying a home, moving to a month-to-month agreement could work well.

You may only have to give four weeks' notice before vacating the rental property (be sure to check the rules in your state or territory). You also won’t have to deal with lease transfer or lease break headaches when you’re ready to move into your first home.

Check your credit score

Your credit score is calculated based on what's in your credit report. For example:

• the amount of money you’ve borrowed
• the number of credit applications you’ve made
• if you pay on time. ¹

A healthy credit score plays a role when applying for a mortgage. So if you’re considering buying a house, check out our article on “How to potentially improve your credit score".

Explore first homeowner grants

Buying a house may be your life’s biggest purchase—both in excitement and money. Thankfully, some grants and reductions may be available if you're a first-home buyer.

Learn about government programs that offer incentives for first-time home buyers. It’s important to understand these programs’ eligibility criteria if you’re hoping to take advantage of their benefits.

Look into home loan pre-approval

‘Fixed or variable interest rates— or a combination — what is my best mortgage option?’ This is a common question among first-home buyers.

A home loan expert  can explain the differences and help you choose what’s right for you.

It’s time to find your new home

You’ve made it to the most thrilling part of the process—actually buying a home! Be sure to give yourself time when home shopping. It can often take months before you find a property that ticks all the boxes. When you do, it can be a good idea to arrange a building and pest inspection  before putting in an offer or bidding at auction.

A solicitor or licensed conveyancer can also be very helpful when you’re reviewing a contract of sale. If your offer is accepted, they can continue providing guidance straight through to settlement.

Get expert home loan assistance 

No matter where you are in the home buying process, a Suncorp Bank home loan expert can help make things easier. There’s no cost or obligation. They can answer your home financing questions, help organise your application and assist you every step of the way.

Talk to a home loan expert

Published 5 July 2024

¹https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports