We viewed over 100 houses as first homebuyers in Australia before we bought our home in the Sunshine Coast Hinterland. Having been through it ourselves, we kept noticing these red flags that were an instant no for us.
For first homebuyers from the UK, it’s hard to know what’s normal here and what isn’t. So this guide covers what to check at an open home, which inspections to pay for before you sign, the money mistakes to avoid and the government schemes worth looking into.
Still working out where you can afford to buy? Move Regional is the free tool Steve built to compare regional towns across Queensland, New South Wales and Western Australia. And for the full story of how we bought, read my 18 tips for buying a house in Australia.
Just so you know: I’m not a mortgage broker, a building inspector or a lawyer. I’m sharing what we learned the hard way. Hunter Galloway are the mortgage brokers we used to buy our home, and we partner with them now, so you’ll see their free tools linked here. For advice on your own situation, book a free call with them.
Main questions you might be thinking as first homebuyers in Australia
What are the biggest red flags for first homebuyers at an open home?
Candles burning, every light switched on, a cheap renovation and an agent who calls a problem “an easy fix”. Each one can hide mould, a dark house or poor building work. The biggest red flag of all is being told you don’t need your own building and pest inspection.
Do not trust the real estate agents no matter how much they charm you. At the end of the day, they are just sales people. As first homebuyers in Australia, it’s easy to fall into this trap because there is so much money at stake and you think everyone is on your side. They aren’t unfortunately.
How much deposit do first home buyers need in Australia?
Deposit goals typically range from 5% to 20% of the purchase price. Lenders Mortgage Insurance is often required if your deposit is less than 20%. The Australian Government 5% Deposit Scheme requires a minimum 5% deposit and has no income caps. Eligible single parents or single legal guardians with dependent children may buy with a minimum 2% deposit, subject to scheme and lender approval.
What government help is there for first home buyers?
Government assistance programs exist to support first-time buyers. The First Home Super Saver Scheme lets you put up to $50,000 of voluntary super contributions towards your first home deposit, and the ATO works out how much is released. Under the Help to Buy scheme, the government contributes up to 40% of the price. Each state also has its own first home owner grant and stamp duty concessions.
Red flags at the open home
Attending property inspections is crucial before you buy. This is what we looked for at every one.
1. Candles burning
It’s humid where we live and a lot of houses have mould. If candles were lit when we walked in, we opened every cupboard, because that’s where you smell it. Then we’d ask the agent if the house had any mould. If they said no, we didn’t trust anything else they told us. Fans running and windows wide open in winter are the same sign, and so is fresh paint in odd patches.
2. Every light switched on
A lot of Australian homes are dark inside. Turn the lights off and look at the natural light. If it’s dark, see whether skylights are possible. You’ll start to realise all open inspections will have all the lights on no matter what time of day the viewing is.
3. Low ceilings
We saw so many bunk beds where a child could sit up on the top bunk straight into the ceiling fan. I have no idea how this isn’t illegal. I’d also think about if low ceilings are a deal breaker for you as well as they can make the house feel small and could potentially be very hot in summer.
4. The Kmart reno
That’s what we call a cheap renovation dressed up to look new, usually with lino floors. New builds can be the same. In the first house we looked at, which I thought was the one, I asked if a wall could come out. The agent knocked on it, and it was so hollow you could almost move it. Be careful of these builds, they could cost you way more to do up properly.
5. “It’s an easy fix”
That same house was a year old and had a hole in the ceiling. The agent said it was no big deal. I was like, then why haven’t you fixed it before selling?
6. What the house is sitting on
We walked away from a beautiful house on a floodplain, and another at the bottom of a hill next to a creek. It rains a lot here, and in Queensland a creek also means mozzies.
7. How much work it needs
Most established homes have a bathroom or kitchen that needs doing. One house we nearly went for needed so much just to live in it that we couldn’t do it.
Red flags before you sign as first homebuyers in Australia
Inspection by licensed professionals is recommended before finalising a home purchase. It was the best money we spent.
8. Get your own building and pest
Ours found termites that had eaten away the structural parts of a house. A follower rang me recently about her first home in Western Australia. The agent told her she wasn’t allowed her own building and pest inspection because the sellers had already done one, and theirs didn’t even cover the whole house. To me, that’s the biggest red flag of all. The rules differ by state, so ask your conveyancer how to make your offer subject to your own inspection.
9. If there’s a pool, get a pool inspection
Our pool inspector went in with diving gear. The pool looked amazing, but it was crumbling, and he told us it would cost $100,000 to replace. We’d never have known.
Money red flags for first homebuyers
10. House hunting before you know your number
Pre-approval helps determine your borrowing capacity before house hunting as first homebuyers in Australia. Pre-approval is conditional, not a guarantee of the final loan. The lender still needs to approve the property and complete its checks. Our budget kept changing, and it made everything harder. Before you apply for a home loan, review your credit score and pay down existing debts. Hunter Galloway’s how much can I borrow calculator is a good place to start.
11. Only budgeting for the deposit
Homebuyers should budget for upfront and ongoing costs beyond the deposit. Upfront, that’s stamp duty, conveyancing and inspections. Lenders Mortgage Insurance (LMI) may apply with a deposit below 20%, unless you qualify for a government guarantee or lender waiver. Hunter Galloway have a free LMI calculator, a deposit calculator and a Queensland stamp duty calculator to run your own numbers. After you move in, there are hidden costs like home insurance, council rates and maintenance.
12. Borrowing the maximum
What a lender will give you and what you’re comfortable paying are two different numbers. Look at the principal and interest repayments, not just the property value. We did go a little higher on our budget in the end, because we have an Airbnb on our property that helps pay the mortgage.
13. Assuming you’ll get every scheme
Not all benefits apply to every buyer or every home. Check the eligibility criteria and the relevant scheme documentation before you count on any of these.
- The Australian Government 5% Deposit Scheme (the old Home Guarantee Scheme). Eligible first home buyers can purchase property with a minimum 5% deposit. Because the government guarantees part of the loan, you don’t pay Lenders Mortgage Insurance. Since 1 October 2025 there are no income caps and places are uncapped, but property price caps apply. It’s for owner occupiers, not an investment property.
- Single parents. Under the same scheme, eligible single parents or single legal guardians with dependent children may buy with a minimum 2% deposit, subject to scheme and lender approval.
- Help to Buy. Applications for this shared equity scheme opened on 5 December 2025. The government contributes up to 40% of the price of a new home, or 30% of an existing home, and you need a minimum 2% deposit. Income caps apply, and every applicant must be an Australian citizen.
- The First Home Super Saver Scheme. You can make voluntary super contributions of up to $15,000 a year, and $50,000 in total, towards your first home deposit. What’s released depends on the type of contribution: 85% of eligible before-tax contributions or 100% of eligible after-tax contributions, plus associated earnings. The ATO determines the release amount.
- The First Home Owner Grant (FHOG). In most states this is for new homes and house and land packages, not established homes. In Queensland it’s $30,000 for a new home valued under $750,000.
- Stamp duty relief. New South Wales has the First Home Buyers Assistance Scheme, with a stamp duty exemption up to $800,000 and concessions up to $1 million. Queensland has a first home concession and a first home vacant land concession. Western Australia and the Australian Capital Territory, with its Home Buyer Concession Scheme, have their own rules.
Assuming your visa doesn’t matter
The citizenship and residency rules differ by scheme, so check each one. Help to Buy, for example, requires every applicant to be an Australian citizen. Most schemes also need you to live in the home as your principal place of residence. In Queensland, New Zealand citizens on a special category visa count for the grant.
Since 1 August 2026, Queensland’s stamp duty concessions are only for citizens and permanent residents. If you’re on a temporary visa, read my guide on whether foreigners can buy property in Australia first.
Know your non negotiables as first homebuyers in Australia
First homebuyers in Australia should distinguish non-negotiable features from desirable features. Ours were solid wood floors, natural light and a house that was properly built. The home we bought is made of bluestone. The agent told us it was cool in summer and warm in winter, and for once it was true. We have one aircon unit and rarely turn it on, after a rental so hot the windows stayed shut for months.
Making a competitive offer involves market research and strategy. When ours came up, another offer had come in and we had 30 minutes to put ours in. We offered $10,000 over asking. The full story is in my 18 tips for buying a house in Australia.
Settlement day
Finalising settlement requires the legal transfer of the property and payment of the remaining fees. Your conveyancer or solicitor handles it. Do your final inspection first.
Official sources worth bookmarking
I’ve listed a few resources to check out before buying your home as a first homebuyer in Australia.
- Treasury: supporting people into home ownership
- Housing Australia: support to buy a home
- ATO: First Home Super Saver Scheme
- Queensland Revenue Office: first home owner grant
- Revenue NSW: First Home Buyers Assistance Scheme
The main thing to know
For first homebuyers in Australia, navigating the purchase of a home takes financial preparation and budgeting, and a healthy bit of suspicion at open homes. Turn the lights off, open the cupboards and pay for your own inspections.
I’m not an expert and the rules change, so book a free call with Hunter Galloway before you decide anything. And if you haven’t picked a town yet, start with Move Regional.
This article is general information, not financial or legal advice.
