7 Stages of the Property Buying Process

Buying a property may seem straightforward, but in reality, the process can be overwhelming. The good news? We’re here to help buyers like you gain confidence when purchasing a property. This is our job, after all!

To get started, here are the seven key stages of the buying process:

1. Be Financially Prepared

Once you’ve decided to invest in your future and purchase a property, the next step is conducting thorough research on the current market and property values. Make sure to monitor the market right up until you’re ready to make an offer—staying informed is key, as the market is constantly changing.

Another important step is consulting a mortgage broker. They’ll assess your needs, whether you’re looking for the lowest interest rate, a long-term finance plan, or an investment strategy. Every bank and lender has its own set of specialties and criteria. Mortgage brokers have access to multiple lenders and can help determine which one suits you best, based on your financial goals.

A mortgage broker can help you with:

• How much you can afford to borrow

• Current interest rates

• Different financing options and loan products

• All fees involved in purchasing a property

Mortgage brokers are also free for consumers to use, as they are paid by the lender they place the home loan with. Once you have a clear plan, you can move on to the hardest part of the process—saving your deposit.

2. Save the Deposit for Your Property Purchase

This may be the longest stage, so it’s crucial to stay focused on your goals. Here are some tips to help you save your deposit:

• Review your budget – Calculate how much you can save each month and track your progress.

• Reduce unnecessary spending – Make a conscious effort to manage your money more closely.

• Prioritise savings – Treat your property savings like a bill that’s due each month.

• Open a dedicated savings account – Consider term deposits, which limit withdrawals and help prevent unnecessary spending.

The key here is discipline—avoiding unnecessary expenses can bring you closer to your homeownership goal.

3. Pre-Approval Phase

Once you’ve saved your deposit, the next step is securing pre-approval from a bank. Pre-approval is an "in-principle" commitment from a lender that confirms how much you can borrow for a property.

A bank will assess your financial details and credit history to determine your borrowing capacity. Having pre-approval gives you confidence when house hunting, as you’ll know your budget limits and can negotiate more effectively.

Things to keep in mind about pre-approval:

• Re-engage with your mortgage broker to help finalise your pre-approval.

• Pre-approval is not unconditional – You may still need a finance clause in your contract of sale.

• Pre-approval can improve your buying power, as it shows sellers you’re financially ready to proceed.

4. Begin “The Search”

Searching for a property can be exciting, but it also requires careful decision-making. Here are some key tips:

• Don’t get emotionally attached too soon – There’s always competition, and other buyers may be willing to pay more. If you miss out, move on quickly.

• Do your research before attending open homes – Understand the suburb, floor plan, price range, and property condition.

• Be prepared during inspections – Bring a camera and measuring tape to record key details. In high-demand markets, you may not get a second inspection opportunity.

5. Putting in Your Offer

This is where things get serious. The offer process requires careful consideration, especially in a competitive market.

Before making an offer, consider:

• Deposit amounts (initial and balance)

• Offer amount

• Finance clauses and how long they take to satisfy

• Building and pest inspections

• Settlement date

• Any special terms (e.g. rent-back arrangements, due diligence, body corporate searches)

💡 Tip: The highest offer doesn’t always win! Sellers may prefer offers with better terms. Always talk to the agent to understand what matters most to the seller.

6. Conditional & Unconditional Phase

Once your offer is accepted, you enter the conditional phase. If your contract is conditional, you must complete tasks such as:

• Organising a building and pest inspection – Ensure there are no hidden defects.

• Finalising finance approval – Work with your mortgage broker and bank to satisfy any finance clauses.

• Engaging a solicitor or conveyancer – They’ll liaise with the seller’s solicitor and handle the legal process.

If the inspection reveals major issues, you can renegotiate the price or request repairs. If necessary, you may also withdraw from the contract.

Once all conditions are met, the contract becomes unconditional, and the sale moves toward settlement.

7. Settlement

This is the final stage of the buying process! Settlement day is when the seller receives payment, and you officially take ownership of the property. This is also when you collect the keys and can move in.

Congratulations, you’re now a homeowner! 🎉