Buying your first home can feel like a big step, particularly when you’re trying to understand deposits, home loans, contracts and everything that happens before you get the keys.
In South Australia, eligible first home buyers may qualify for a grant of up to $15,000 when buying or building a new home.
Changes introduced in June 2024 also removed property value caps for certain first home buyer concessions, so it’s worth knowing what you may be eligible for.
This first home buyer guide explains the main stages of buying a property in Adelaide, from working out your budget and getting pre-approval through to making an offer, securing finance and settlement.
You’ll also learn what common property and lending terms mean, what costs to expect and which questions to ask along the way.
1. Work out what you can comfortably afford
Before you start inspecting properties, it helps to know how much you may be able to borrow and what your repayments could look like.
Your borrowing capacity is the amount a lender estimates you could borrow based on your financial circumstances.
Lenders usually look at your income, living expenses, existing debts, credit history and available deposit. They also consider whether you could still manage your repayments if interest rates increased.
There’s an important difference between what a lender may approve and what you would feel comfortable borrowing.
A home loan needs to fit around your everyday life, not just your current income. That means thinking about groceries, transport, bills, savings and the buffer you’d like to have available for unexpected costs.
It’s also worth thinking about how your circumstances could change. A new job, starting a family or taking time away from work could affect what you have available for repayments.
Remember the costs beyond the purchase price
Your deposit and loan repayments are only part of the cost of buying a property.
Other expenses may include:
- Stamp duty (unless an exemption or concession applies)
- Conveyancing and legal fees
- Building and pest inspections
- Loan application, establishment or valuation fees
- Lenders Mortgage Insurance (LMI) (if applicable)
- Moving costs, insurance and immediate repairs
Once you own the property, there are ongoing costs too. These include council rates, water charges, insurance and maintenance. Some properties also have strata or community title fees.
Understanding these expenses early can help you set a more realistic property budget.
2. Understand your deposit and first home buyer support
One of the biggest questions first home buyers ask is how much they need to save. A 20% deposit is a typical benchmark because it can help borrowers avoid LMI.
LMI is insurance that protects the lender if a borrower can’t repay their home loan. It does not protect the borrower, and it can add to the cost of purchasing a home.
Some lenders will accept a smaller deposit, though. Certain government schemes can also reduce the deposit you need.
What first home buyer grants are available in South Australia?
South Australia offers a First Home Owner Grant of up to $15,000. It’s available to eligible people buying or building a new residential property. For eligible contracts entered into on or after 6 June 2024, there’s no longer a property value cap.
Eligible first home buyers may also receive stamp duty relief when purchasing a new home, an off-the-plan apartment or vacant land to build a home. This is separate from the grant, and each has its own application and eligibility requirements.
Generally, South Australia’s First Home Owner Grant and first home buyer stamp duty relief do not apply to the purchase of an established home.
Other requirements apply, including previous property ownership and how the property will be occupied.
You can check the current rules on RevenueSA’s First Home Owner Grant and stamp duty relief pages.
3. Get home loan pre-approval before making an offer
Once you know your budget, the next stage is to look at your home loan options and apply for pre-approval.
Home loan pre-approval is an initial assessment from a lender. It shows how much they may be prepared to lend you, subject to certain conditions.
We strongly recommend getting pre-approval, because it helps you set a price range before you begin making offers.
Most pre-approvals are valid for about 3 to 6 months, although this can vary.
What documents do you need for pre-approval?
A lender or mortgage broker may ask for documents such as:
- Identification, including a driver’s licence or passport
- Recent payslips or other evidence of income
- Bank statements showing savings and expenses
- Details of credit cards, personal loans or other debts
- Information about your employment
If you are self-employed, you may also be asked for tax returns and financial statements.
Your mortgage broker can explain what information is required and how different lenders assess applications.
Does pre-approval mean your home loan is guaranteed?
No. Pre-approval is not the same as formal or unconditional approval.
Before providing final approval, the lender will generally assess the property you’re purchasing, review its valuation and confirm that your financial circumstances still meet its requirements.
Read more about borrowing capacity and the application process here.
4. Start your property search and complete your inspections
At this point, you can start looking for a property with a clear idea of what you can afford.
For first home buyers in Adelaide, location is often one of the first considerations. But there’s more to choosing a home than finding one in your preferred suburb.
Think about the practical side of living there. Travel time to work, access to public transport, nearby amenities, the condition of the property, and potential maintenance costs can all affect whether a home makes sense for you.
It’s also useful to research recent comparable sales instead of relying entirely on an advertised asking price.
What is a building and pest inspection?
A building and pest inspection is an important step when buying a property, as it can help identify potential issues before you commit to the purchase.
A building inspection assesses the property’s condition and may identify problems such as structural defects, moisture damage or maintenance concerns.
A pest inspection looks for evidence of pests, particularly termites and related damage.
Ideally, these inspections should be completed before you sign a contract or bid at auction. This gives you an opportunity to understand whether the property has any significant issues, what repairs might be needed and whether those costs could affect your decision to purchase.
If you’re unable to arrange an inspection before making an offer, you may be able to negotiate a contract that’s subject to a satisfactory building and pest inspection.
Your conveyancer or solicitor can help you understand how this condition works.
The cost of these inspections is generally paid out of pocket by the buyer, regardless of whether the purchase goes ahead.
While it’s an additional upfront expense, it can help you make a more informed decision and reduce the risk of discovering costly problems after you’ve purchased the property.
What is Form 1 in South Australia?
The Form 1, also known as the vendor’s statement, is an important document when buying property in South Australia.
It contains information about the property, such as ownership details, easements, mortgages, zoning and certain property outgoings. It also explains the buyer’s cooling-off rights.
An easement is a legal right that allows another party to use part of a property for a particular purpose, such as access to underground services.
A conveyancer or solicitor can review the Form 1 and contract to help you understand what you’re purchasing and identify any legal issues before you commit.
5. Make an offer and understand the contract
Finding a property you want to buy is one thing. Knowing how to make an offer and what happens once it’s accepted is another.
In South Australia, properties are commonly sold by private treaty sales or at auctions.
Buying through a private treaty sale
A private treaty sale generally involves negotiating a purchase price and contract terms with the seller, often through a real estate agent.
Your offer may include conditions, such as obtaining satisfactory finance approval or completing a building inspection.
These are known as contract conditions. They outline requirements that must be met. They can also affect your rights and obligations under the agreement.
A conveyancer or solicitor can explain these conditions before you sign.
What happens if you buy at auction?
Buying at auction in South Australia works differently.
Here, purchases made at auction generally do not have a cooling-off period. The successful bidder will usually be required to enter into an unconditional contract.
This makes preparation very important.
Ideally, your finance, legal documents and property inspections should be reviewed before auction day rather than afterwards.
What is the cooling-off period?
For many private treaty purchases in South Australia, buyers have a cooling-off period of 2 clear business days.
Generally, this begins when the contract has been signed or the Form 1 has been provided, whichever occurs last.
There are exceptions, including auction purchases and certain other transactions.
The South Australian Government explains the conditions and exceptions in its guide to offers, auctions and buying off the plan.
What is the contract deposit?
If your offer is accepted, you may have to pay a deposit under the sale contract.
This is different from the total deposit or savings contribution used to finance the purchase.
The contract deposit is generally held in a trust account until settlement and forms part of the agreed purchase price.
Your contract will outline how much is required and when payment is due. Missing contractual obligations can have serious consequences, so it’s important to understand the terms before signing.
6. Move from pre-approval to formal home loan approval
After your offer is accepted and a contract is signed, your home loan application moves towards formal approval.
Your lender usually requires a copy of the signed contract and information about the property. It may also arrange a valuation, which is an assessment of the property’s value for lending purposes.
Importantly, a lender’s valuation is not necessarily the same as the price you’ve agreed to pay. If the valuation is lower than expected, the lender might reduce the amount it is prepared to lend, which could create a funding shortfall.
The lender may also request updated documents or clarification about your financial position.
Once all requirements have been satisfied, they can issue formal or unconditional approval.
What happens after formal approval?
Your lender will provide loan documents setting out the approved terms.
These generally include information about:
- The loan amount and interest rate
- Repayment arrangements
- Loan fees and charges
- Loan features and applicable conditions
- The term of the loan
These documents are important because they explain the financial commitments you’re entering into.
Once the loan documents are signed and processed, your lender and conveyancer can prepare for settlement.
7. Prepare for settlement and collect your keys
Settlement is the final stage of buying your first home.
It is the legal and financial process where the balance of the purchase price is paid, ownership transfers to you and your home loan funds are drawn down.
The settlement date is usually agreed between you and seller and recorded in the contract.
In South Australia, a conveyancer or solicitor generally coordinates settlement with the lender and the seller’s representative.
What needs to happen before settlement?
Several final arrangements need to be completed before ownership transfers.
These may include confirming your remaining funds, arranging any required insurance, signing outstanding documents and completing a final property inspection.
A final inspection is an opportunity to check that the property is in the condition required by the contract and that agreed inclusions remain in place.
Your conveyancer can explain when the inspection should occur and what to do if a problem is identified.
It’s also a good time to sort out practical things like electricity, internet, moving services and updating your address.
What happens on settlement day?
On settlement day, the financial and legal transfer of the property is completed.
Once settlement has been confirmed, the real estate agent can generally arrange for you to collect the keys.
Your home loan repayments will begin according to the lender’s agreed repayment schedule.
Buying your first home doesn’t mean you need to understand every mortgage or property term immediately. What matters is knowing the questions to ask, which decisions are coming up and who can help you understand them.
How a Rise High mortgage broker can help with your first home
Buying your first property involves decisions about borrowing capacity, deposits, loan features and finance conditions. Having someone explain how these fit together can make the process easier to understand.
At Rise High, our mortgage brokers can help you understand your borrowing options, prepare for pre-approval and work through the lending process. Learn more about the home-buying process with Rise High.
Or, if you’re ready to get started, speak to an adviser today.
Frequently asked questions about buying your first home
Having a HECS-HELP debt does not prevent you from getting a home loan.
Lenders will take it into account, though, because your compulsory HELP repayments come out of your income and reduce what’s left to put towards a mortgage. That can affect how much you’re able to borrow.
How much difference it makes depends on your income, any other debts you have and how the lender you apply with assesses HELP debt. Lenders don’t all treat it the same way, so your borrowing capacity can look quite different from one to the next.
If a lender values a property below the agreed purchase price, you’ve agreed to pay, the lender will generally base your loan on the lower figure.
That can mean you’re offered less than you expected, leaving a gap between the loan and the purchase price that you’d need to cover with additional funds.
A lower valuation can also change your loan-to-value ratio, which may affect whether lenders mortgage insurance applies.
Your options will depend on the contract, finance conditions and lender requirements, so professional advice can be important before making further commitments.
No. A buyer’s agent is not generally required to purchase a property in Adelaide.
Some buyers engage one to assist with property searches, inspections and negotiations, usually for a fee.
A buyer’s agent has a different role from a conveyancer or solicitor, who deals with the legal aspects of the purchase.
Family members may be able to assist through a financial gift or guarantor arrangement, depending on the lender’s requirements.
A gift may need to be documented, while a guarantee can create significant financial obligations for the person providing it. Different lenders assess these arrangements differently, so the implications need to be understood before proceeding.
Yes, you can buy property in Adelaide while you’re living in another state. What changes is how some of the details fit together, particularly if you’re hoping to access first home buyer support.
Grants, stamp duty relief and owner-occupier lending are generally linked to the property being the home you’ll live in. That means your eligibility may depend on whether you plan to move in, and when. If you’re relocating, or still working out the timing, it helps to be clear on that before you sign a contract.
Legal and practical arrangements for inspections, signing documents and settlement may also need to be coordinated remotely.
Alycia Lee
Author and Mortgage & Finance Adviser
Alycia Lee
Author and Mortgage & Finance Adviser
The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
