7 Steps to Your First Home Loan

Buying your first home? Here’s how to get finance-ready with confidence.

Purchasing your first property is exciting but navigating the finance side can feel overwhelming. At Highland, we support first home buyers every day, guiding them through each step with clarity and confidence.

Here’s a simple breakdown of the seven key steps to securing your first home loan.


1. Understand your borrowing power
Before you start house hunting, it’s essential to know what you can afford. Lenders assess:

• Your income and expenses
• Existing debts (like HECS, credit cards, or car loans)
• Your deposit size
• Your credit history

A Highland finance partner can help you calculate your borrowing power early on.


2. Save for a deposit (and more)
Most lenders require at least 5–20% of the purchase price as a deposit. But you’ll also need to budget for:

• Stamp duty
• Legal and conveyancing fees
• Building and pest inspections
• Loan application and LMI (lender’s mortgage insurance, if applicable)

3. Explore your loan options
There are many loan types available, including:

• Fixed vs variable rate loans
• Principal & interest vs interest-only
• Offset accounts and redraw facilities

A broker or lending expert can help match you to the right loan for your situation.


4. Get pre-approval
Also called conditional approval, this is a lender’s commitment to lend you a certain amount pending final checks. Pre-approval gives you:

• Clarity on your budget
• Negotiation power with agents
• The confidence to make an offer

5. Find the right property
Now the fun begins. Start shortlisting homes that meet your lifestyle, budget, and long-term goals. Highland’s buyer specialists can help you find the right fit without the overwhelm.


6. Finalise your loan
Once you’ve had an offer accepted, your lender will finalise your loan. This includes:

• A formal property valuation
• Submitting all documentation
• Loan approval and contract signing

Your solicitor or conveyancer will help manage the process up to settlement.


7. Settle and move in
On settlement day, the funds are transferred and the keys are yours. You’re officially a homeowner!
We recommend reviewing your loan annually to ensure it still suits your needs as your life evolves.


First home? Highland can help.
From finance to finding the perfect home, Highland is your trusted partner for the entire journey. We’re here to simplify the process, explain every step, and make your first home purchase one to remember.